In a move that could redefine the global entertainment industry, streaming behemoth Netflix has moved into exclusive negotiations to purchase the film, television, and streaming businesses of media giant Warner Bros Discovery. This positions Netflix one step closer to executing one of the most significant takeovers in recent entertainment history.
The Exclusive Bid and Competing Offers
According to a source with direct knowledge of the discussions, Netflix has put forward an offer priced at $28 per share. This bid surpasses Warner Bros Discovery's closing stock price of $24.54 on Thursday. The offer also exceeds a competing proposal from Paramount, which was valued at nearly $24 per share and aimed to acquire the entire company portfolio, including cable channels like CNN, TNT, and TBS.
The exclusive negotiation phase follows a second round of bids this week. Initial proposals had been submitted by Netflix, Paramount Skydance, and Comcast. Reuters had previously reported that Netflix's offer was mostly in cash, which helped it emerge as the frontrunner in the high-stakes auction.
A Strategic Shift for Netflix and Industry Backlash
This potential acquisition marks a bold strategic pivot for Netflix as it expands beyond its core subscription model to tap into diverse revenue streams. Securing Warner Bros Discovery would grant Netflix control over some of the world's most prized entertainment franchises, including Harry Potter, Game of Thrones, and the DC Comics universe. This would transform Netflix into a vertically integrated powerhouse capable of producing, distributing, and monetizing major intellectual property entirely on its own platforms.
However, the prospect of such a colossal merger has triggered significant pushback within the industry. Variety reported that a consortium of prominent film figures has called on the US Congress to intervene, warning of a "looming economic and institutional crisis" across Hollywood should the deal succeed.
Furthermore, Paramount has accused Warner Bros Discovery of conducting a sales process that unfairly favors Netflix. In a letter cited by Reuters, Paramount's legal team urged the establishment of a special committee of unbiased directors to oversee the sale, stating, "We strongly urge you to empower such a special committee... whose interests may differ from those of the stockholders."
Deal Details and Regulatory Hurdles
Bloomberg News reported that Netflix is prepared to pay a substantial $5 billion breakup fee if regulators block the transaction. Sources indicate that the two companies could unveil a formal agreement within days. This latest bidding round comes after a failed attempt earlier this year when Warner Bros Discovery declined an estimated $60 billion takeover offer from Paramount for the entire business before initiating a more structured sales process for its key assets.
Netflix's ambitious expansion is not limited to studio acquisitions. The company has also been extending its reach into adjacent areas like gaming, live content, and consumer experiences, signaling its intent to build a comprehensive entertainment ecosystem.
