Netflix in exclusive talks to buy Warner Bros Discovery studios
Netflix is in exclusive negotiations to acquire Warner Bros Discovery’s film and television studios, along with its streaming assets, in a deal valued at $28 per share. The proposed acquisition, which would combine Netflix with HBO Max, is expected to lower streaming costs for consumers through bundled offerings.
Netflix has emerged as the leading bidder for the assets after all suitors were asked to improve their initial offers. Bloomberg reported that Netflix has agreed to pay a $5 billion breakup fee if regulators block the deal, while CNBC said the company’s proposal includes 85% cash. Neither Netflix nor Warner Bros Discovery responded to requests for comment, News.Az reports, citing Reuters.
The possibility of a deal has sparked concern in Hollywood. According to Variety, a consortium of prominent industry figures has urged the U.S. Congress to intervene, warning that a Netflix takeover could trigger economic and structural instability across the entertainment sector.
Warner Bros Discovery is expected to receive another round of bids by the end of Thursday, the Wall Street Journal reported. Paramount Skydance has accused the company of running an unfair sale process that favors Netflix, pointing to reports that management prefers Netflix’s offer. In a letter to CEO David Zaslav, Paramount’s legal team questioned the fairness of the bidding process and requested confirmation that an independent committee is overseeing the sale.
Paramount has sought to buy the entire company and previously made a roughly $60 billion offer in October, which Warner Bros Discovery rejected before launching a formal sale process. Comcast and Paramount have not commented on the latest developments.
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