US Stock Market Move | Announces acquisition of Warner Bros. Discovery for $82.7 billion, Netflix (NFLX.US) pre-market drops more than 4%

On Friday, the stock price of Netflix (NFLX.US) dropped in pre-market trading, falling over 4% to $99 as of the time of writing. Warner Bros. Discovery Channel (WBD.US) rose over 4.3% in pre-market trading, reaching $25.545. In terms of news, Netflix announced that it will acquire Warner Bros. Discovery Channel at a price of $27.75 per share (approximately $82.7 billion total enterprise value), including its film and television production departments, HBO Max, and HBO. Netflix stated that it will maintain Warner Bros.' existing operating model; the total equity value of the transaction is approximately $72 billion. A previous report stated that Netflix had become the highest bidder for acquiring Warner Bros. According to the agreement terms, each Warner Bros. shareholder will receive $23.25 in cash and 4.501 shares of Netflix common stock for each share.