Netflix to Buy Warner Bros. in $72 Billion Cash, Stock Deal (2)

Netflix Inc. agreed to buy Warner Bros. Discovery Inc. in a historic combination, joining the world’s dominant paid streaming service with one of Hollywood’s oldest and most revered studios.

Under the deal announced Friday, Warner Bros. shareholders will receive $27.75 a share in cash and stock in Netflix. The total equity value of the deal is $72 billion, while the enterprise value of the deal is about $82.7 billion.

Prior to the closing of the sale, Warner Bros. will complete the planned spinoff of its networks division, which includes cable channels such as CNN, TBS and TNT. That transaction is ...