Netflix says it must acquire Warner Bros Discovery to compete with YouTube, but antitrust experts doubt regulators will buy that argument. The streaming giant's $72 billion takeover of Warner Bros Discovery's studios and HBO Max will face scrutiny from U.S. and global regulators, given its scale and the combined 428 million subscribers.
Zacks.com users have recently been watching Netflix (NFLX) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
The recent news that Netflix has agreed to buy part of Warner Bros Discovery (WBD) for US$83 billion (£61.8 billion), followed by Paramount Global's hostile counterbid to acquire WBD in its entirety for US$108.4 billion, has triggered shockwaves through Hollywood and the wider entertainment industry.
Paramount CEO David Ellison wrote a letter to WBD shareholders to win them over. He urged WBD shareholders to tender their shares and switch teams from Paramount to Netflix.
Netflix, Inc. (NFLX) is caught in the middle of an escalating bidding war for Warner Bros. Discovery that's creating volatility for the streaming giant's shares and new trading opportunities in leveraged ETFs tied to the stock.
Netflix and Paramount are battling to acquire Warner Bros. Discovery.
Netflix is a buy following its bold $27.75/share bid for Warner Bros. studios and streaming assets. Acquiring Warner Bros. would combine NFLX's subscriber base with premier Hollywood IP, positioning it as the global streaming revenue leader. Risks include Paramount's competing $30/share hostile bid, regulatory scrutiny, integration challenges, and NFLX's recent earnings miss.
"After Paramount announced the hostile [takeover bid], I hear it's almost guaranteed that Netflix will up its offer to stay in the game," said one media company executive.
Whether or not it's a good move for the streamer, the world has bigger issues.
Netflix's $82.7 billion bid for Warner Bros. Discovery is under pressure as Paramount Skydance launches a richer $108.4 billion all-cash offer.
Netflix ‘s ( NASDAQ:NFLX ) $72 billion bid to acquire Warner Bros.
Netflix (NASDAQ:NFLX) has made an agreement to acquire the studio operations and HBO Max streaming service from Warner Bros. Discovery for $72 billion in equity, which values the company at an overall enterprise value of $82.7 billion, including debt.