BREAKINGVIEWS-Wells Fargo puts on a costly show for Netflix
Wells Fargo is providing $30 billion to finance Netflix's acquisition of Warner Bros Discovery's studios and HBO Max, a deal valued at $83 billion. This marks one of the largest single-lender IOUs, showcasing rising risk appetite and CEO Charles Scharf's ambition. Moelis is the lead financial advisor to Netflix, with Wells Fargo as an additional advisor.
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own.)
By Stephen Gandel
NEW YORK, Dec 5 (Reuters Breakingviews) -
The bank is providing $30 bln to finance the streaming giant’s deal for Warner Bros, among the biggest single-lender IOUs ever and topping the likes of JPMorgan’s $20 bln for AT&T’s run at T-Mobile. It’s proof of rising risk appetite and CEO Charles Scharf’s unbridled ambition.
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CONTEXT NEWS
Netflix said on December 5 that it had agreed to buy Warner Bros Discovery’s studios and HBO Max streaming service in a deal valued at $83 billion including debt. Wells Fargo is leading a $59 billion bridge loan to finance the deal.
Moelis is acting as lead financial advisor to Netflix, with Wells Fargo serving as additional financial advisor. Allen & Co, JPMorgan and Evercore are advising WBD. (Editing by Jonathan Guilford; Production by Maya Nandhini)
