"As Friday dawns, today's big news is that Netflix ( Nasdaq: NFLX) will buy streaming service HBO Max, as well as the Warner Bros. studio belonging to Warner Bros. Discovery ( Nasdaq: WBD). Netflix stock is down nearly 4% on the news, and Warner Bros. stock is up more than 4% - but the Vanguard S&P 500 ETF ( NYSEMKT: VOO) is shrugging off the news as a non-event, and still flat premarket."
"Netflix will pay $72 billion for the Warner Bros. assets, but the deal is not expected to close for another 12 to 18 months - and a lot could happen between now and then, up to and including federal antitrust intervention forbidding the deal to happen. (In the event the deal falls through, Netflix will have to pay Warner Bros. Discovery a $5.8 billion "breakup fee." Conversely, if Warner Bros. chooses to call off the sale, it will need to pay Netflix $2.8 billion.)"
Netflix will acquire HBO Max and the Warner Bros. studio from Warner Bros. Discovery for $72 billion. Netflix shares fell nearly 4% while Warner Bros. Discovery shares rose over 4%, and the S&P 500 ETF remained flat in premarket trading. The transaction is not expected to close for 12 to 18 months and may face federal antitrust review. Breakup provisions include a $5.8 billion payment from Netflix if the deal fails and a $2.8 billion payment from Warner Bros. if the sale is called off. Warner Bros. plans to spin off remaining assets into Discovery Global in Q3 2026. Government data on September consumer spending, income, and the PCE price index will be released after a shutdown delay. Hewlett-Packard Enterprise reported a fiscal Q4 earnings beat of four cents.
Read at 24/7 Wall St.
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