We now have an official winner of the bidding for Warner Bros. Discovery.
In an agreement that will revolutionize the entertainment industry, Netflix emerged as the winner in the sale process of Warner Bros. Discoveryin an agreement of Total enterprise value of $82.7 billion., beating out the other bidders, Paramount Skydance and Comcast.
In more detail, the agreement implies that Netflix will pay $27.75 per share for the iconic Hollywood studio, with an equity value of $72 billion, according to reports from the streamer on its official site.
It is important to specify that, Netflix will acquire Warner Bros., including its film and television studios, HBO and HBO Maxsubject to regulatory conditions.
As said from the beginning, the streamer was not interested in acquiring Discovery Globalthe global networks division of WBD that includes TNT, TBS, CNN, HGTV, and Food Network. Therefore, The agreement will be finalized after Discovery Globalbecomes a new publicly traded company, a operation planned to occur during the third quarter of 2026.
Yesterday, reports emerged that spoke of Netflix as the favorite, over offers from Paramount Skydance and Comcast. The boards of directors of Netflix and WBD voted unanimously in favor of the agreement.
David Zaslavpresident and CEO of Warner Bros. Discovery stated in a press release:
“Today's announcement unites two of the world's largest storytelling companies to bring the entertainment they love most to even more people. For more than a century, Warner Bros. has captivated audiences, captured global attention and shaped our culture. By joining with Netflix, we will ensure that people around the world continue to enjoy the world's most powerful stories for generations to come.”
The terms of the deal will see each WBD shareholder receive $23.25 in cash and $4.50 in Netflix common shares for each WBD common share.
In its official announcement, Netflix stated that “expects to maintain current Warner Bros. operations.” y “take advantage of its strengths, including theatrical releases of films”. Netflix added that the acquisition will also allow the company “significantly expand its production capacity in the US.”
It is known that film releases are a point that worries members of the industry and the audience alike, so the above can be translated into, Netflix will honor theatrical distribution agreements of Warner Bros. projects. Details such as what type of release will be given, what the release window will be like between cinema and platform, etc., have not been specified at the moment.
“Our mission has always been to entertain the world,” declared Ted Sarandosco-CEO of Netflix. “By combining Warner Bros.' incredible collection of series and movies. —from timeless classics like Casablanca y Citizen Kane to modern classics like Harry Potter— with titles that define culture like Stranger Things, K-Pop Demon Hunters y Squid Gamewe can do even better. Together, we can give audiences more of what they love and help define the next century of storytelling“.
And key element in the sales process that WBD officially started in October, has been the policyso it is to be expected to hear from the White House on today's developments. The regulatory concerns appear to be a critical factor in the agreement. Prior to the official agreement, it was reported that the Department of Justice (DOJ) was preparing for an investigation into a possible merger of Netflix and HBO Max.
Paramount Skydance's Ellison family has close ties to President Trump. Let us remember that the recently announced Rush Hour 4 It is a reality at the request of the president. Paramount insisted in an open letter published yesterday that the Netflix offer, specifically, ““presents serious problems that no regulator can ignore.”. Paramount argued that Netflix, being the dominant streaming service globally, would face major antitrust hurdles by incorporating Warner Bros., HBO, and HBO Max. David Ellison He questioned whether Zaslav's company was conducting a fair sales process.
Last June, Warner Bros. Discovery announced it had launched a plan to split the company into two entities (one dedicated to Streaming and Studies –WB, HBO, HBO Max–, and another division Global Networkswith the content of Discovery Global: CNN, TNT Sports, Discovery, Discovery+, Bleacher Report), something that is expected to be completed by the third quarter of 2026, prior to the closing of the now official transaction with Netflix.
The WBD plan was created to deal with a downturn in your overall businesswhich has generated a debt close to $38,000 million dollars. You can find the details of the WBD division by clicking here.
INFORMATION IN DEVELOPMENT…
Source: https://cine3.com/netflix-gana-puja-warner-bros-discovery-mega-oferta/
