Breaking: Netflix to Acquire Warner Bros Inc (WBD) is up 3.7%
In a shocking turn of event, Netflix is set to acquire Warner Bros Inc. (WBD).
Netflix announced that it will acquire the HBO Max streaming service as well as the Warner Bros. film studio from Warner Bros. Discovery. The deal values the company at $27.75 per share, which implies a $72 billion equity valuation for the assets. The company will also assume $10.7 billion in net debt on Warner Bros. Discovery's balance sheet.
The acquisition is a cash-and-stock deal. Warner Bros. Discovery shareholders will receive $23.50 in cash for each share they own, plus $4.50 in Netflix stock.
Netflix investors should be aware that the company is financing this deal primarily with debt. In addition to the $10.7 billion in net debt the acquired company brings, Netflix is taking on an additional $50 billion in debt to fund the purchase.
Technical Outlook
as of the time of writing,
WBD is up 3.44% breaking out of a bullish symmetrical triangle as the stock eyes the $50 resistant zone. However, with the RSI at 74 possible drawback might occur before the leap.
About WBD
Warner Bros. Discovery, Inc. operates as a media and entertainment company worldwide. It operates through three segments: Studios, Network, and DTC. The Studios segment produces and releases feature films for initial exhibition in theaters; produces and licenses television programs to its networks and third parties and direct-to-consumer services; distributes films and television programs to various third parties and internal television; and offers streaming services and distribution through the home entertainment market
Netflix announced that it will acquire the HBO Max streaming service as well as the Warner Bros. film studio from Warner Bros. Discovery. The deal values the company at $27.75 per share, which implies a $72 billion equity valuation for the assets. The company will also assume $10.7 billion in net debt on Warner Bros. Discovery's balance sheet.
The acquisition is a cash-and-stock deal. Warner Bros. Discovery shareholders will receive $23.50 in cash for each share they own, plus $4.50 in Netflix stock.
Netflix investors should be aware that the company is financing this deal primarily with debt. In addition to the $10.7 billion in net debt the acquired company brings, Netflix is taking on an additional $50 billion in debt to fund the purchase.
Technical Outlook
as of the time of writing,
WBD is up 3.44% breaking out of a bullish symmetrical triangle as the stock eyes the $50 resistant zone. However, with the RSI at 74 possible drawback might occur before the leap. About WBD
Warner Bros. Discovery, Inc. operates as a media and entertainment company worldwide. It operates through three segments: Studios, Network, and DTC. The Studios segment produces and releases feature films for initial exhibition in theaters; produces and licenses television programs to its networks and third parties and direct-to-consumer services; distributes films and television programs to various third parties and internal television; and offers streaming services and distribution through the home entertainment market
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.