Netflix is all set to buy Warner Bros Discovery's television, film studios and streaming arms for a whopping $72 billion, Reuters reported.
The vaunted studios will be bought by Netflix in a cash and stock deal at $27.75 per share, with a consolidated value of nearly $82.7 billion. This move would have sweeping effects on the dynamics of Hollywood, Financial Express reported.
As a result of this acquisition, Netflix's worldwide reach and much-loved streaming service will get merged with the legacy of Warner Bros.
Which titles will be shifting to Netflix as a result?
The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz and the DC Universe will become a part of Netflix's library when the acquisition gets over, reported Financial Express.
"By combining Warner Bros' incredible library of shows and movies, from timeless classics like Casablanca and Citizen Kane to modern favourites like Harry Potter and Friends, with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we’ll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling," said Ted Sarandos, co-CEO of Netflix.
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What will happen to shareholders?
Under the deal, every Warner Bros. Discovery (WBD) shareholder will get $23.25 in cash and $4.50 worth of Netflix stock for each WBD share they hold at the time the deal closes. This puts WBD's value at $27.75 per share, amounting to a total equity valuation of about $72 billion and an enterprise value of approximately $82.7 billion.
