Netflix shares slip as antitrust worries cloud its $83 billion Warner Bros bid

Netflix Inc. shares fell on Friday as investors grew increasingly wary of the heightened antitrust scrutiny surrounding the company’s planned takeover of Warner Bros. Discovery, a deal that would reshape the global entertainment landscape and consolidate two of Hollywood’s most powerful players.

The stock dropped 0.71% to $103.22, extending a week-long slide that has wiped out earlier gains and pushed the shares to a seven-month low. The decline comes despite Netflix posting $11.51 billion in third-quarter revenue. Investors remain focused on regulatory hurdles that could threaten - or significantly delay - the proposed $83 billion acquisition.

Under the agreement announced Friday, Netflix will buy Warner Bros. in a cash-and-stock deal valued at $72 billion in equity and $82.7 billion in enterprise value. Warner Bros. shareholders will receive $23.25 in cash and $4.50 in Netflix stock. Before closing, Warner Bros. will spin off its networks division, including CNN, TBS and TNT.

If approved, the deal would give Netflix control of HBO, Warner Bros. Studios in Burbank, and franchises such as Harry Potter, The Sopranos

, and Friends. “Together, we can give audiences more of what they love and help define the next century of storytelling,” co-CEO Ted Sarandos said.

The companies expect to generate $2–3 billion in annual cost savings within three years, but regulators are likely to scrutinize the merger’s impact on competition in streaming and traditional entertainment. Congressman Darrell Issa has already urged U.S. authorities to block the deal, calling it potentially harmful to consumers.

Netflix agreed to pay a $5.8 billion termination fee if the transaction collapses or fails to win approval. The deal is expected to close within 12–18 months.