RTTNews·2025-12-08 10:34Core Viewpoint - The proposed $83 billion acquisition of Warner Bros. Discovery by Netflix raises concerns regarding market share and regulatory approval, particularly from US President Donald Trump [1][2]. Group 1: Acquisition Details - Netflix announced a $72 billion equity transaction to acquire Warner Bros. Discovery, which includes its film and television studios, HBO Max, and HBO [4]. - The total enterprise value of the transaction is approximately $82.7 billion, with a per share price of $27.75 for Warner Bros. Discovery shareholders, comprising $23.25 in cash and $4.50 in Netflix stock [5]. - Netflix has agreed to a $5.8 billion break-up fee if the deal is blocked by antitrust officials [1]. Group 2: Market Share Concerns - The merger could push Netflix's market share above the 30 percent threshold in the US, raising potential regulatory issues [3]. - President Trump highlighted that the acquisition would significantly increase Netflix's market share, which could complicate the approval process [2]. Group 3: Financial Expectations - Netflix anticipates realizing $2 billion to $3 billion in cost savings annually by the third year post-acquisition and expects the deal to be accretive to GAAP earnings per share by the second year [6]. - The acquisition is projected to close within 12-18 months, following the separation of Warner Bros.'s Global Networks division, expected to be completed in Q3 of fiscal 2026 [6]. Group 4: Market Reaction - Following the announcement, Netflix shares increased by approximately 1.01 percent to $101.25, while Warner Bros. shares decreased by 1.9 percent to $25.58 [7].