Netflix Acquires Warner Bros. Discovery Amid Hostile Bid
Netflix has entered into an acquisition agreement to purchase Warner Bros. Discovery for an enterprise value of approximately $82.7 billion. This deal includes valuable assets such as Warner’s film and television studios and the HBO Max streaming service. However, Paramount Skydance has made a rival move with a hostile bid, offering $30 per share, which values its proposal at around $108.4 billion.
Following the announcement, Netflix’s stock has declined significantly, reflecting concerns over the company’s escalating debt, projected to reach $75 billion after the acquisition, nearly three times its EBITDA over the past year. While the acquisition could enhance Netflix’s content portfolio, including franchises like Harry Potter and Game of Thrones, the financial implications raise questions about its short-term performance.
