"Under the Netflix deal, each Warner Bros Discovery shareholder will receive $23.25 in cash and about $4.50 in Netflix stock per share, valuing Warner at $27.75 a share, or about $72bn in equity and $82.7bn with debt. Netflix has offered Warner Bros Discovery a $5.8bn breakup fee, while Warner Bros Discovery would pay Netflix $2.8bn if the deal collapses. Netflix said it expects to generate at least $2bn to $3bn in annual cost savings by the third year, after the deal closes."
"The deal would give Netflix ownership of iconic franchises such as Game of Thrones, DC Comics and Harry Potter. It is also expected to raise antitrust concerns in Europe and the United States that the purchase would greatly increase the buying power of Netflix, which is already a dominant force in Hollywood. Netflix has said that the deal would create more jobs and opportunities for talent."
"If I was tasked with doing so, I could not think of a more effective way to reduce competition in Hollywood than selling WBD to Netflix, Jason Kilar, the former CEO of Warner Media, said in a post on the social media platform X. Al Jazeera reached out to both the Writers and Screen Actors Guilds for comment, but neither group was immediately available"
Netflix agreed to buy Warner Bros Discovery's TV, film studios and streaming division for about $72bn. Each Warner shareholder will receive $23.25 cash plus about $4.50 in Netflix stock, valuing Warner at $27.75 per share and about $82.7bn including debt. Netflix offered a $5.8bn breakup fee while Warner would pay $2.8bn if the deal collapses. Netflix expects $2bn–$3bn in annual cost savings by the third year. The deal transfers iconic franchises including Game of Thrones, DC Comics and Harry Potter to Netflix. Observers anticipate antitrust scrutiny and critics warn the acquisition could reduce competition and consumer choice. Warner CEO David Zazlav will step down after completion.
Read at www.aljazeera.com
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