Netflix has agreed to buy the TV/film studios, plus streaming divisions, of Warner Bros. (WBD) in a cash and stock transaction.
WBD will spin out its cable TV assets in advance of this transaction. The agreement is for $23.25 in cash and $4.501 worth of shares in Netflix stock for each share of WBD common stock. This values WBD at around $72.0bn, or $82.7bn if debt is included.
Shareholder and regulatory approvals are required before completion, which is expected in around 12-18 months.
The shares fell 3.1% in pre-market trading.
Our view
HL view to follow.
Netflix key facts
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This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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