Netflix–Warner Bros. Deal Delivers $27.75 Per Share and Promises a Global Entertainment Shift

Board Endorsement Signals Strategic Win for Netflix Over Rival Bid

Netflix just landed a key victory in its ambitious bid to acquire Warner Bros. Discovery (WBD). After thorough evaluation, the WBD Board is urging shareholders to support Netflix’s $82.7 billion merger offer, dismissing Paramount Skydance’s competing proposal as inferior. For Netflix and WBD shareholders, this board backing is more than a rubber stamp—it's a pivotal move with significant financial and creative implications.

Deal Details: Clear Path, Higher Value for Stockholders

The transaction brings together two industry powerhouses, offering WBD shareholders $27.75 per share—a blend of $23.25 in cash and $4.50 in Netflix stock (with a collar mechanism to help protect value as the deal closes). This offer carries an estimated total equity value of $72.0 billion and a total enterprise value of $82.7 billion.

Shareholders also gain additional upside from WBD’s upcoming separation of its Discovery Global networks, planned for Q3 2026, promising even more flexibility and growth prospects.

Global Reach: Merger Reinforces Netflix’s Industry Standing but Remains Competitive

The WBD Board’s endorsement underscores confidence in Netflix’s vision and execution, but also highlights the robust competition in global streaming. In the U.S., Netflix currently sits at a TV view share of 8%, trailing YouTube and Disney (at 12.9% and 11.4%, respectively). Even post-merger, the combined Netflix–HBO/HBO Max view share would only climb to 9.2%—still behind market leaders. Internationally, Netflix’s view share remains below 10% in major markets, highlighting plenty of room for further growth and new content offerings.

Deal Promises Long-Term Value and Creative Expansion

What makes this combination stand out? Netflix gains Warner Bros.’ legendary theatrical and TV production muscle and the prestige of the HBO brand, while WBD stockholders get immediate and incremental value. According to Netflix’s co-CEOs, this transaction is positioned to drive “pro-consumer, pro-creator, and pro-growth” outcomes by bringing beloved franchises—from The Big Bang Theory and The Sopranos to Game of Thrones and the DC Universe—to even wider global audiences.

The combined company plans to respect traditional theatrical releases, commit to global creative opportunities, and invest further in new and legacy IP, signaling a renewed push to offer both at-home and cinematic entertainment. For creative professionals, the partnership opens the door for more ambitious projects and expanded reach.

Risks, Rewards, and What to Watch Next

While the WBD Board’s support suggests a smooth path to close, the merger remains subject to shareholder and regulatory approval, and carries the usual deal-making risks: integration challenges, market competition, and evolving consumer trends. The outcome will likely shape the next era of streaming and studio operations—not just for Netflix, but for the industry as a whole.

For investors and observers, this deal offers an inside look at how Netflix and Warner Bros. are doubling down on the future of entertainment. With regulatory filings ahead and a pending shareholder vote, expect plenty of news and new data to digest before the curtain rises on this mega-merger.

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