Netflix Inc. agreed to buy Warner Bros. Discovery Inc. in a historic combination, joining the world’s dominant paid streaming service with one of Hollywood’s oldest and most revered studios.

Under the deal announced on Friday, Warner Bros. shareholders will receive $27.75 per share in cash and Netflix stock. The total equity value of the deal is $72 billion, while the enterprise value is about $82.7 billion. Prior to the closing of the sale, Warner Bros. will complete the planned spinoff of cable channels, including CNN, TBS and TNT.

Strategic shift

The acquisition marks a dramatic strategic shift for Netflix, which has never made a deal of this scope. The streaming pioneer grew to become Hollywood’s most valuable company, without the benefit of a library or studio, by licensing program

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