Yahoo Finance·2025-12-05 15:27Core Viewpoint - Netflix is set to acquire HBO Max and Warner Bros. studio from Warner Bros. Discovery for $72 billion, with the deal expected to close in 12 to 18 months, subject to potential federal antitrust intervention [2][3]. Group 1: Acquisition Details - Netflix will pay Warner Bros. Discovery shareholders $23.25 in cash and $4.50 in Netflix common stock for each share they hold [4]. - If the deal falls through, Netflix will incur a $5.8 billion breakup fee, while Warner Bros. Discovery will owe Netflix $2.8 billion if they cancel the sale [3]. Group 2: Market Reaction - Following the announcement, Netflix's stock declined nearly 4%, while Warner Bros. stock increased by over 4%. The Vanguard S&P 500 ETF remained flat, indicating a neutral market reaction to the news [2]. Group 3: Future Plans - Warner Bros. Discovery plans to spin off assets not included in the Netflix deal, such as cable networks TNT and CNN, under the name "Discovery Global," with the spinoff expected to occur in Q3 2026 [3]. Group 4: Earnings Update - Hewlett-Packard Enterprise reported fiscal Q4 2025 earnings of $0.62, beating expectations by four cents, but revenue fell short at $9.7 billion, with weak guidance for fiscal Q1 2026 [6].