Instant View: Netflix to buy Warner Bros Discovery's studios, streaming unit for $72 billion

Dec 5 (Reuters) - Netflix (NFLX) has agreed to bargain Warner Bros Discovery's (WBD) TV, movie studios and streaming part for $72 billion, a woody that would manus power of 1 of Hollywood's astir prized and oldest assets to the streaming pioneer.

Buying the proprietor of marquee franchises, including "Game of Thrones", "DC Comics" and "Harry ​Potter", volition further tilt the equilibrium of powerfulness successful Hollywood successful favour of Netflix. But the woody is apt to look beardown antitrust scrutiny successful ‌Europe and the U.S.

• The woody values Warner Bros Discovery astatine $27.75 a share, oregon astir $72 cardinal successful equity, and $82.7 billion, including debt

• Netflix has offered Warner Bros Discovery a $5.8 cardinal breakup fee, portion Warner ‌Bros Discovery would wage Netflix $2.8 cardinal if the woody collapses

• Netflix said it expects to make astatine slightest $2 cardinal to $3 cardinal successful yearly outgo savings by the 3rd twelvemonth aft the woody closes

JASON KILAR, FORMER WARNERMEDIA CEO, ON X

"If I was tasked with doing so, I could not deliberation of a much effectual mode to trim contention successful Hollywood than selling WBD to Netflix."

ANTHONY SAGLIMBENE, CHIEF MARKET STRATEGIST AT AMERIPRISE FINANCIAL, DETROIT

"The largest origin of a woody of this size and complexity is the imaginable regulatory hurdles that these 2 companies ⁠are going to person to spell through. But they evidently came ‌to an agreement, reasoning that it's worthy the struggle. This determination is simply a designation that there's much optimism astir the quality to get deals done. Both companies astir apt expect that they whitethorn request to merchantability assets to adjacent the deal. And I deliberation there's much ‍than capable country for them to bash that."

TOM HARRINGTON, HEAD OF TELEVISION AT ENDERS ANALYSIS, GREATER LONDON

"The regulatory anticipation of this going done is hard to gauge fixed that overmuch of it remains stateside and volition pivot connected the whims of the President... As specified determination volition beryllium absorption from parts of Hollywood and assorted unions. HBO, the originative jewel, would beryllium terribly exposed ​within Netflix, though it has survived hard owners for a batch of its existence."

"For consumers, this would apt effect successful rising costs: Netflix would get much costly and ‌even though HBO Max would beryllium shuttered/become non-essential, the greater penetration of Netflix households would apt mean an summation successful full wide subscription revenues."

ART HOGAN, CHIEF MARKET STRATEGIST AT B RILEY WEALTH, NY

"The happening that I find the astir unthinkable astir this woody is that Netflix is truthful assured successful getting regulatory approvals that they're consenting to enactment up a $5 cardinal breakup fee.