Netflix to Buy Warner Brothers Discovery

Acquirer: Netflix, Inc. (NASDAQ: NFLX)

Provides entertainment services, offering television series, documentaries, feature films, and games across various genres and languages
Provides subscribers the ability to receive streaming content through internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile
Operates in ~190 countries
Incorporated in 1997 and headquartered in Los Gatos, CA

Moelis & Company and Wells Fargo

Global media and entertainment company that operates through Studios, Network, and Direct-to-Consumer segments
Produces and distributes film, television, and gaming content
Leveraging a vast portfolio of brands such as HBO, DC, Discovery, CNN, Food Network and TNT Sports, the company delivers entertainment to audiences worldwide via linear television, digital licensing, and subscription streaming services
Incorporated in 2008 and headquartered in New York, NY

Allen & Company, J.P. Morgan and Evercore

$72.0 billion/Cash and stock

The two companies have complementary strengths and assets; both are leading suppliers of television and film content with deep catalogues of film and television titles. Netflix expects to maintain WBD's current operations and build on its strengths, including theatrical releases for films
Netflix expects to realize at least $2–3 billion of cost savings per year by the third year and expects the deal to be accretive to GAAP EPS by the second year
“By combining Warner Bros.' incredible library of shows and movies—from timeless classics like Casablanca and Citizen Kane to modern favorites like Harry Potter and Friends—with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we can give audiences more of what they love and help define the next century of storytelling,” said Ted Sarandos, co-CEO of Netflix

Netflix will acquire WBD’s entertainment assets, including its film and television studios and HBO Max, for $27.75 per share, with a total enterprise value of approximately $82.7 billion
Each WBD shareholder will receive $23.25 in cash and $4.50 in Netflix stock per share
The acquisition depends on the completion of WBD’s separation of its Global Networks business into Discovery Global, regulatory approvals, WBD shareholder approval, and other customary conditions; the deal is projected to close within 12–18 months
Netflix has lined up $59 billion in debt backed by Wells Fargo, BNP Paribas, and HSBC