WBD to be Acquired by Netflix for $27.75 Cash Per Share Plus Spin-Off Value, Board Unanimously Recommends Deal
WBD has more than doubled off its 52-week low of $7.52.
Summary
Warner Bros. Discovery entered an amended merger agreement to sell its Streaming & Studios business to Netflix for $27.75 cash per share, while spinning off its Global Linear Networks segment into a new public company, Discovery Global, for shareholders.
Key Events · M&A and Partnerships · WBD
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Definitive Merger Agreement with Netflix
Warner Bros. Discovery has entered into an Amended and Restated Agreement and Plan of Merger with Netflix, Inc. for the acquisition of WBD's Streaming & Studios Business.
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All-Cash Consideration of $27.75 Per Share
The merger consideration is $27.75 in cash per share of WBD Common Stock, replacing a previously proposed mix of cash and Netflix stock, providing enhanced value certainty.
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Significant Premium for Shareholders
The cash consideration represents a 121% premium to WBD's unaffected stock price of $12.54 prior to media reports of acquisition interest, and a 100% premium to its unaffected 52-week high.
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Spin-Off of Global Linear Networks Segment
WBD shareholders will also receive shares in a new standalone public company, Discovery Global, which will hold the Global Linear Networks segment, prior to the Netflix merger.
Analysis · WBD · Technology
Warner Bros. Discovery has entered into an amended and restated merger agreement to be acquired by Netflix for $27.75 in cash per share for its Streaming & Studios business. This all-cash offer, which replaces a previous cash-and-stock proposal, provides shareholders with immediate value certainty and represents a substantial 121% premium over WBD's unaffected stock price prior to media reports of acquisition interest. Additionally, WBD shareholders will retain ownership in a newly spun-off public company, Discovery Global, which will hold the Global Linear Networks segment, further enhancing shareholder value. The unanimous recommendation by the WBD Board, following a competitive bidding process, and Netflix's commitment to a $5.8 billion regulatory termination fee, underscore the strategic importance and high likelihood of this transformative transaction.
At the time of this filing, WBD was trading at $28.53 on NASDAQ in the Technology sector, with a market capitalization of approximately $70.8B. The 52-week trading range was $7.52 to $30.00. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.