Company: WBD
Filing Date: 2025-12-10
Form Type: DFAN14A
Source: 0001193125-25-314445
Chunk: 2

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-12-10
Form: DFAN14A
Chunk 2
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 more than $4 below the low-end of the collar on its stock consideration. This reduces the value of Netflix’s offer. |

| 3) | During the pendency of a regulatory review process that could take two years or more, WBD shareholders will                                                                                                                             
 be exposed to Netflix stock’s downside risk, including technology sector volatility, a lofty ~25x forward EBITDA multiple and the uncertainty of seven future quarterly earnings results. For reference, Netflix has lost approximately 
 one quarter of its market capitalization ($110+ billion) since its last quarterly earnings report and amid its pursuit of WBD.                                                                                                          |

| 4) | Buried in an 8-K filing on Friday was a mechanism                                                                                                 
 providing a dollar-for-dollar reduction in the purchase price if more debt gets allocated to Streaming & Studios because of an unspecified cap on 
 Global Networks. While the limit is undisclosed, every $1 billion above it could represent a reduction of ~$0.40 / share.                         |

| 5) | Netflix’s transaction leaves WBD shareholders with 100% of the risk of the Global Networks                                                                                                                                                         
 standalone plan. As outlined on our December 8 investor call, we believe Global Networks is worth ~$1 / share which would mean a total headline value to WBD shareholders in the Netflix deal of $28.75                                            
 – below our $30.00 all-cash offer. This is before any risk adjustments described above and any                                                                                                                                                     
 time-value-of-money discounting of Netflix’s offer to account for the substantially longer timeline to close (~$1.25 / share for every six months).1 In addition, the Netflix transaction would further exacerbate the decline of Global Networks. |

| 1 | Based on 4.5x consensus next twelve months EBITDA (including allocation of stock-based compensation and                                                                                                                                                                                                                                                            
 corporate overhead) of $3.9 billion as of Q3’26 (expected separation closing date WBD announced as part of Netflix transaction) and net debt of $15 billion. 4.5x multiple is based on equity research analysts who perform a sum-of-the-parts analysis of WBD and is also within range of where research analysts expect Versant to trade, despite the facts that 
 Versant will have materially lower net leverage (~1.25x vs. Global Networks >3x), strong news (e.g., CNBC and MS Now), live sports (e.g., Golf Channel, English Premier League, the Olympics, others) and high-growth digital assets