Warner Bros. Discovery to Sell to Netflix for $23.25 per Share
Written by Emily J. Thompson, Senior Investment Analyst
Source: Businesswire
Updated: 1 day ago0mins
- Transaction Value: Warner Bros. Discovery plans to sell its film and television studios to Netflix for $23.25 in cash and $4.501 in Netflix stock per share, indicating significant market interest in these assets.
- Shareholder Rights Investigation: Kahn Swick & Foti is investigating whether the proposed transaction adequately reflects Warner Bros.' true value, aiming to protect shareholder interests, which could impact the transaction's smooth execution.
- Market Reaction: The deal has sparked discussions about Warner Bros.' future value, and if deemed undervalued, shareholders may pursue legal action, potentially affecting the company's reputation and stock price.
- Industry Consolidation Trend: This transaction signifies further consolidation in the streaming industry, as Netflix's acquisition of Warner Bros. will enhance its content library, potentially altering the competitive landscape and influencing strategic decisions of other industry players.
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Analyst Views on NFLX
Wall Street analysts forecast NFLX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NFLX is 139.13 USD with a low forecast of 95.00 USD and a high forecast of 160.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
36 Analyst Rating
28 Buy
7 Hold
1 Sell
Strong Buy
Current: 96.710
Low
95.00
Averages
139.13
High
160.00
Current: 96.710
Low
95.00
Averages
139.13
High
160.00
Needham
Buy
maintain
$150
2025-12-09
New
Reason
Needham
Price Target
$150
2025-12-09
New
maintain
Buy
Reason
Needham keeps a Buy rating and $150 price target on Netflix (NFLX) but warns that buying Warner Bros. (WBD) would put $83B of additional value at risk of being disrupted by GenAI storytelling. Without Warner, Netflix is more global, more nimble, more tech-first, and has more flexibility with the Hollywood unions, the analyst tells investors in a research note. Needham further notes that Warner's employee count of 35K is 2.5-times larger than that of Netflix, suggesting that its culture and operating practices will be hard for Netflix to overcome.
Rosenblatt
Rosenblatt
Buy -> Neutral
downgrade
$152 -> $105
2025-12-08
New
Reason
Rosenblatt
Rosenblatt
Price Target
$152 -> $105
2025-12-08
New
downgrade
Buy -> Neutral
Reason
Rosenblatt downgraded Netflix to Neutral from Buy with a price target of $105, down from $152, after the "surprise announcement" of a $83B EV and $72B equity value agreement to acquire Warner Bros.' (WBD) studios and HBO businesses. Following the news, the firm sees an extended period of uncertainty and risks, balanced against what it calls "a very small financial ROIC that clearly can't be driving this deal." The deal instead "seems to lean heavily on the imponderables of leveraging Warner Bros.' film and TV library in non-detailed ways," which drives the firm to assume a more cautious multiple, the analyst tells investors.
Benchmark
Matthew Harrigan
Buy
maintain
$25 -> $30
2025-12-08
New
Reason
Benchmark
Matthew Harrigan
Price Target
$25 -> $30
2025-12-08
New
maintain
Buy
Reason
Benchmark analyst Matthew Harrigan raised the firm's price target on Warner Bros. Discovery (WBD) to $30 from $25 and keeps a Buy rating on the shares to reflect the firm's $30 sum-of-the-parts analysis through 2030, noting that the firm's prior $25 target constituted an "as is" public market assessment rather than a breakup analysis. Though the firm is "quite constructive" on the benefits of the board approved Netflix (NFLX) offer, timely regulatory approval "appears problematical at best," the analyst added.
Argus
Buy
maintain
$27 -> $28
2025-12-08
New
Reason
Argus
Price Target
$27 -> $28
2025-12-08
New
maintain
Buy
Reason
Argus raised the firm's price target on Warner Bros. Discovery to $28 from $27 and keeps a Buy rating on the shares. The differential between Netflix's (NFLX) offer price and the current share price has not completely closed as some market uncertainty around whether the deal will be completed persists, the analyst tells investors in a research note. It is also conceivable that another bidder could come in with a higher offer, the firm added.
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About NFLX
Netflix, Inc. is a provider of entertainment services. The Company acquires, licenses and produces content, including original programming. It provides paid memberships in over 190 countries offering television (TV) series, films and games across a variety of genres and languages. It allows members to play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time. The Company offers members the ability to receive streaming content through a host of Internet-connected devices, including TVs, digital video players, TV set-top boxes and mobile devices. It is engaged in scaling its streaming service, such as introducing games and advertising on its service, as well as offering live programming. It is developing technology and utilizing third-party cloud computing, technology and other services. The Company is also engaged in scaling its own studio operations to produce original content.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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