Warner Bros. Discovery's stock surged 5.01% during Friday's trading session following the announcement of a major acquisition deal with streaming giant Netflix.
The significant price movement comes as Netflix agreed to purchase Warner Bros. Discovery's TV and film studios along with its streaming division for $72 billion. This deal would give Netflix control over valuable entertainment franchises including Harry Potter, Game of Thrones, and DC Comics, while providing Warner Bros. Discovery shareholders with $23.25 in cash and $4.50 in Netflix stock per share.
The acquisition, which has an enterprise value of approximately $82.7 billion, is expected to close after Warner Bros. Discovery completes the separation of its cable networks business into a new publicly traded company. The deal represents one of the largest media consolidations in recent years and has been unanimously approved by both companies' boards of directors.
