Netflix to acquire Warner Bros. in £72bn deal

BY Fraser Tennant

In what would be a game-changing deal for Hollywood’s biggest studios, US streaming service Netflix agreed to acquire global media and entertainment company Warner Bros. Discovery’s (WBD’s) TV, film studios and streaming division in a deal valued at $72bn.

Under the terms of the definitive agreement, WBD shareholders will receive $23.25 in cash and $4.501 in shares of Netflix common stock for each share of WBD common stock outstanding at the closing of the transaction. The transaction values Warner Bros. Discovery at $27.75 per share.

The acquisition would bring together two pioneering entertainment businesses, combining Netflix’s innovation, global reach and best in class streaming service with WBD’s century-long legacy of world class storytelling.

Through adding WBD’s extensive film and TV libraries and HBO and HBO Max programming, Netflix members will have even more high-quality titles from which to choose – allowing Netflix to optimise its plans for consumers, enhancing viewing options and expanding access to content.

The deal will also enhance Netflix’s studio capabilities, allowing the company to significantly expand US production capacity and continue to grow investment in original content over the long term, creating jobs and strengthening the entertainment industry.

“Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities,” said Greg Peters, co-chief executive of Netflix. “With our global reach and proven business model, we can introduce a broader audience to the worlds they create – giving our members more options, attracting more fans to our best in class streaming service, strengthening the entire entertainment industry and creating more value for shareholders.”

The transaction was unanimously approved by the boards of directors of both Netflix and WBD.

“This transaction combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most,” said David Zaslav, president and chief executive of WBD. “For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”

The transaction is expected to close in 12-18 months, subject to required regulatory approvals, approval of WBD shareholders and other customary closing conditions.

“Our mission has always been to entertain the world,” noted Ted Sarandos, co-chief executive of Netflix. “This acquisition will improve our offering and accelerate our business for decades to come.”

However, on Monday 08 December the Netflix-WBD transaction was thrown into uncertainty as Paramount responded with a $108.4bn hostile bid. It announced an all-cash tender offer to acquire all of the outstanding shares of WBD for $30 per share. Paramount’s proposed transaction is for the entirety of WBD, including the Global Networks segment, and would provide shareholders $18bn more in cash than the Netflix consideration, according to the company.

“WBD shareholders deserve an opportunity to consider our superior all-cash offer for their shares in the entire company,” said David Ellison, chairman and chief executive of Paramount. “Our public offer, which is on the same terms we provided to the Warner Bros. Discovery Board of Directors in private, provides superior value, and a more certain and quicker path to completion. We believe the WBD Board of Directors is pursuing an inferior proposal which exposes shareholders to a mix of cash and stock, an uncertain future trading value of the Global Networks linear cable business and a challenging regulatory approval process. We are taking our offer directly to shareholders to give them the opportunity to act in their own best interests and maximize the value of their shares.”

News: Netflix to buy Warner Bros Discovery’s studios, streaming unit for $72 billion

Marvell to acquire Celestial AI in $3.25bn deal

BY Fraser Tennant

In a deal that accelerates its connectivity strategy for next-generation artificial intelligence (AI) and cloud data centres, chipmaker Marvell Technology is to acquire semiconductor start-up Celestial AI in a transaction valued at approximately $3.25bn.

Under the terms of the definitive agreement, Celestial AI will receive $1bn in cash and 27.2m shares of Marvell common stock worth $2.25bn – based on the average volume weighted average price for the 10 trading days ending the second day prior to signing.

The deal to acquire Celestial AI will allow Marvell to tap into the start-up’s work on photonics, which uses light rather than electrical signals to create connections between AI chips and memory chips – an area in which Marvell competes with Broadcom and the world’s most valuable company, Nvidia.

Combined with its existing leadership in scale-out and scale-across connectivity, Marvell expects the combination with Celestial AI to result in the industry’s most comprehensive provider of high-bandwidth, low-power, low-latency solutions for next-generation data centre connectivity.

“The acquisition of Celestial AI is a transformative step in Marvell’s evolution and expands our leadership in AI connectivity, as scale-up becomes the next frontier in AI infrastructure,” said Matt Murphy, chairman and chief executive of Marvell. “This builds on our technology leadership, broadens our addressable market in scale-up connectivity, and accelerates our roadmap to deliver the industry’s most complete connectivity platform for AI and cloud customers.”

Founded in 2020, Celestial AI is the creator of the ‘photonic fabric’, an optical interconnect technology platform for AI computing systems. The photonic fabric provides the foundational technology for data centre computing, networking and memory systems to enable advancements in AI with sustainable and profitable business models.

“Marvell is the ideal home for our Photonic Fabric, with the scale, customer relationships and connectivity leadership to take this platform into high-volume production,” said David Lazovsky, co-founder and chief executive of Celestial AI. “Together with Marvell’s scale-up switching strategy, we’re excited to accelerate the transition to optical scale-up interconnect and expand what next-generation AI infrastructure can achieve.”

The transaction is expected to close in the first quarter of 2026, subject to customary closing conditions and regulatory approvals.

Marvell expects meaningful revenue contributions from Celestial AI to begin in the second half of 2028, reaching a $500m annualised run rate in the fourth quarter of 2028, doubling to a $1bn dollar run rate by the fourth quarter of 2029.

News: Marvell to buy chip startup Celestial AI for $3.25 billion, bullish on growth next year

Goldman Sachs announces $2bn Innovator deal

BY Richard Summerfield

Goldman Sachs has agreed to acquire Innovator Capital Management, a provider of defined-outcome exchange-traded funds (ETFs) in a cash and stock deal worth around $2bn. The deal marks Goldman’s latest attempt to bolster its asset management division.

According to Goldman, the acquisition, which is expected to close in the second quarter of 2026, will boost its ETF offerings in a fast-growing corner of the investing world. Goldman notes that the acquisition strategically expands the firm’s more durable revenue and reinforces its commitment to offering institutional and individual investors comprehensive solutions.

Upon completion of the deal, Innovator’s 60-plus employees will join Goldman’s asset management division. Bruce Bond, co-founder and chief executive of Innovator, along with other key executives, will join Goldman Sachs Asset Management.

“Active ETFs are dynamic, transformative, and have been one of the fastest-growing segments in today’s public investment landscape,” said David Solomon, chairman and chief executive of Goldman Sachs. “By acquiring Innovator, Goldman Sachs will expand access to modern, world-class investment products for investor portfolios. Innovator’s reputation for innovation and leadership in defined outcome solutions complements our mission to enhance the client experience with sophisticated strategies that seek to deliver targeted, defined outcomes for investors.”

“This transaction is a pivotal milestone for our business,” said Mr Bond. “Goldman Sachs has a long history of discerning emerging trends and important directional shifts within the asset management industry. We are excited to deliver world-class investment solutions to clients within the ETF framework and expand our business in this high-growth, sector-leading category. These synergies, among numerous others, make Goldman Sachs an ideal partner for us.”

According to a statement announcing the deal, citing data by Morningstar, global active ETF assets under management are at $1.6 trillion, growing at a 47 percent compound annual growth rate (CAGR) since 2020 as investors increasingly access public markets through the ETF wrapper.

Having grown at 66 percent CAGR since 20203, defined outcome ETFs are a key component of the rapidly growing active ETF market, driven by the objective to deliver innovative structured strategies in accessible formats. Investors are increasingly using defined outcome ETFs to add a broad and customisable range of objectives to their portfolios that meet their risk control needs and performance objectives.

Innovator has been led by Mr Bond since he co-founded the firm with John Southard in 2017. The firm launched the first defined-outcome ETFs in 2018, and is currently the second-largest provider of buffers behind asset manager First Trust.

Goldman has made a series of deals in the past three months, including the acquisition of venture capital investor Industry Ventures and a $1bn investment in T. Rowe Price Group Inc.

News: Goldman Sachs to buy ETF sponsor Innovator in $2 billion cash-and-stock deal

GE HealthCare to acquire Intelerad in $2.3bn deal

BY Richard Summerfield

GE HealthCare has announced it has agreed to acquire medical imaging software provider Intelerad in a deal worth $2.3bn, as part of wider aims to create a fully-connected, cloud-first imaging ecosystem and to triple its cloud-enabled product offering by 2028.

The deal is expected to be completed in the first half of 2026, subject to customary closing conditions and regulatory approvals. GE HealthCare intends to fund the transaction with cash on hand and proceeds from debt financing. 

“As hospital and ambulatory care providers face increased demand for imaging and rising patient volumes, they are looking to simplify and unify their workflows,” said Peter Arduini, president and chief executive of GE HealthCare. “Our acquisition of Intelerad will bring additional cloud-enabled and intelligent solutions in radiology and cardiology into our portfolio of products and extend our capabilities into outpatient networks, enabling care teams to be more efficient, improve outcomes, and deliver precision care for patients globally. As a result, we expect to accelerate our growth in SaaS products and recurring revenues as we take another evolutionary step to grow into a healthcare solutions provider.”

“Intelerad is an outstanding strategic fit and is a pioneer in cloud-based imaging software, with a strong portfolio of world-class solutions across care settings. By combining GE HealthCare’s medical device and AI competence at global scale with Intelerad’s enterprise cloud and imaging expertise, we will be even better positioned to meet the evolving needs of healthcare providers, simplify complex workflows, and drive digital innovation across the industry,” said Roland Rott, president and chief executive of imaging at GE HealthCare.  

“Joining GE HealthCare marks an exciting new chapter for Intelerad,” said Jordan Bazinsky, chief executive of Intelerad. “GE HealthCare’s global scale and extensive relationships with key decision makers across hospital systems will fuel the expansion of our connected imaging software offering.  Together, we look forward to advancing digital innovation in healthcare and delivering more integrated AI-enabled solutions that empower our customers to tackle their greatest challenges.”

The deal will see Hg Capital, Intelerad’s majority shareholder, and TA Associates, an investor in the company since 2022, fully exit their investments. During Hg’s ownership, Intelerad significantly expanded its business, growing revenue by more than 3.5 times and completing eight strategic acquisitions. The company now serves over 1500 customers worldwide, supporting more than 230 million medical exams annually and managing 8 billion medical images. Hg is estimated to have invested around $500m into Intelerad in January 2020, with unconfirmed sources placing the total value of the investment at around $650m.

According to Hector Guinness and Laura Grattan, partners at Hg, the firm’s partnership with Intelerad was “an outstanding journey of innovation, growth, and leadership in healthcare technology”.

News: Hg exits Intelerad in $2.3bn sale to GE HealthCare

Veolia acquires Enviri’s Clean Earth in $3bn deal

BY Fraser Tennant

In its biggest and most transformative acquisition since 2022, French energy services group Veolia is to acquire US-based hazardous waste company Clean Earth from environmental company Enviri for $3bn.

Under the terms of the definitive agreement, Enviri shareholders will receive a cash consideration of $14.50 to $16.50 per share in the transaction, which has been unanimously approved by the boards of directors of both Enviri and Veolia.  

Once complete, the transaction will double Veolia’s US hazardous waste footprint to create a number two player in a fast-growing sector, with a nationwide operational platform, wider market coverage and an advanced portfolio of technical capabilities.

The acquisition also represents a significant boost of Veolia’s anchoring in the US and in hazardous waste activities, both identified as key priorities as part of the company’s GreenUp strategic plan.

“In line with our GreenUp focus on growth boosters, this acquisition is a major step in the transformation and strengthening of our financial profile,” said Estelle Brachlianoff, chief executive of Veolia. “It allows us to unlock the full value potential of our US hazardous waste activities and to double our size on this critical fast growing sector.”

The hazardous waste treatment sector is particularly robust, especially in the US, where it is outperforming a challenging economic environment and is considered an essential service for key industries, particularly those undergoing transformation or reshoring production, such as advanced manufacturing, semiconductors, clean-energy production, healthcare and pharmaceuticals.

“This agreement is the result of a comprehensive strategic alternatives process to maximise value for our shareholders and realise the sum of the parts valuation of our businesses,” said Nick Grasberger, chairman and chief executive of Enviri. “This transaction is a testament to our team’s dedication and leadership, and we are confident that the business and its employees will prosper as part of Veolia.”

The transaction is expected to close in the middle 2026, subject to the satisfaction of customary conditions, including approval by Enviri’s shareholders and receipt of necessary authorisations and regulatory approvals.

“The continued transformation of our portfolio enhances the growth profile and strength of our group, uniquely positioned to tackle the sustained demand for environmental security,” said Ms Brachlianoff. “This transaction offers a solid value creation potential with significant synergies.”

News: France's Veolia to buy hazardous waste group Clean Earth for $3 billion