Netflix stock sinks as the streaming giant reveals plans to buy Warner Bros. and HBO in $83 billion megadeal

"Netflix has announced that it intends to buy legendary Hollywood studio Warner Bros. in a deal valued at approximately $82.7 billion. The deal, which must be approved by regulators, will further consolidate the entertainment industry and give Netflix ownership of some of the most iconic films and television franchises ever, not to mention HBO. Here's what you need to know:"

"Today, Netflix and Warner Bros announced a deal in which Netflix will purchase the legendary Hollywood studio, along with its HBO Max and HBO divisions, for a total enterprise value of approximately $82.7 billion (which Netflix says has an equity value of $72.0 billion). The deal isn't exactly a surprise, as Warner Bros had previously put itself up for sale publicly and Netflix was expected to be one of the primary bidders for the company's assets."

Netflix will acquire Warner Bros.' Streaming & Studios business, including HBO Max and HBO, in a transaction valued at about $82.7 billion in enterprise value and $72.0 billion in equity value. The deal must receive regulatory approval and follows Warner Bros. Discovery's planned split into separate Streaming & Studios and Global Networks companies. WBD shareholders will receive $23.25 in cash plus $4.50 in Netflix stock per WBD share at closing. The acquisition gives Netflix ownership of major film and television franchises and significant intellectual property, representing a major consolidation in the entertainment industry and an uncommon large-scale move for Netflix.

Read at Fast Company