Netflix Officially Buying Warner Bros. Discovery In $82.7B Deal

Core Viewpoint - Netflix is acquiring Warner Bros. Discovery for an enterprise value of $82.7 billion, marking a significant shift in the entertainment industry [1] Group 1: Deal Structure - Netflix will pay $27.75 per share for Warner Bros. Discovery, resulting in a total equity value of $72 billion [1] - Each Warner Bros. Discovery shareholder will receive $23.25 in cash and $4.50 in Netflix common stock for each share of WBD common stock [3] Group 2: Strategic Implications - The acquisition aims to enhance Netflix's content library by combining Warner Bros.' extensive collection of films and shows with Netflix's original titles, thereby improving audience engagement and storytelling capabilities [3] - Co-CEOs of Netflix believe the deal will accelerate business growth and provide more options for subscribers, ultimately strengthening the entertainment industry [3] Group 3: Advisory and Financing - Moelis & Company LLC is serving as Netflix's financial advisor, while Skadden, Arps, Slate, Meagher & Flom LLP is providing legal counsel [4] - Wells Fargo, BNP, and HSBC are involved in committed debt financing for the transaction [4]