A Complex Financial Structure
Shareholders of WBD will receive Netflix stock valued at $4.50 if the streaming giant’s 15-day VWAP lands between $97.91 and $119.67 before closing. Outside that window, the exchange ratio becomes fixed at 0.0460 or 0.0376 Netflix shares.
Boards at both companies have cleared the transaction, which still awaits regulatory scrutiny, WBD shareholder approval and the completion of the Discovery Global spinoff.
The New Apex Predator of Streaming
Netflix, already the largest paid streaming platform with more than 300 million subscribers, stands to gain unmatched scale through the addition of Warner Bros.’ studios and content libraries. Analysts say the consolidation could bolster Netflix’s negotiating power with cinema chains and Hollywood unions.
If finalized, the acquisition ends a bidding battle that reportedly attracted interest from Comcast and Paramount, positioning Netflix as the victor in one of the most significant entertainment deals of the century.
