"Here we go again! For the third time within a quarter century, the Warner Bros. studio assets have been acquired for more than $70 billion. Since I commented very sharply on the first two, lots of people are asking me my thoughts on the just-announced purchase of Warner Bros. by Netflix. I provide my response in this Playing to Win/Practitioner Insights (PTW/PI) piece. And as always, you can find all the previous PTW/PI here."
"The first of these mega deals was in 2001 when AOL bought Time Warner in a deal that valued Time Warner equity at $166 billion. (While it was more of a merger than a takeover, it was technically structured as an acquisition). The next one was in 2018 when AT&T bought Time Warner for $85 billion. Both deals routinely make lists (like this one) of the worst takeover deals in business history."
Netflix purchased the Warner Bros. studio assets for more than $70 billion, marking the third time in roughly 25 years that those assets changed hands for above $70 billion. Prior major transactions included AOL's 2001 acquisition of Time Warner, valuing equity at $166 billion, and AT&T's 2018 purchase for $85 billion. Both earlier deals later became regarded as among the worst takeover transactions, with AOL ultimately spun off for $3 billion and Time Warner shareholders surrendering roughly 55% of preannouncement company value. AT&T sold the assets to Discovery for $43 billion three years after its acquisition, realizing a substantial loss.
Read at Fast Company
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