Streaming giant Netflix has reportedly become the frontrunner in the race to acquire Warner Bros Discovery, with a bid valued at $28 per share, according to US media reports.
Warner Bros Discovery — the parent company of HBO, CNN, and Warner Bros Studios — officially went up for sale in October after receiving several unexpected offers. This decision halted the company’s earlier plan to break into two divisions: one for streaming and studios, and another for cable networks.
The company had initially attracted interest from Paramount, now owned by the billionaire Ellison family. But as the auction progressed, Netflix, Paramount’s Skydance, and Comcast’s NBCUniversal all made it to the second round of negotiations during the US Thanksgiving period. Paramount reportedly submitted a bid of nearly $27 per share.
Bloomberg reported that Netflix and Warner Bros Discovery have now entered exclusive negotiations for the purchase of the company’s major assets, including its TV and film studios and HBO Max streaming platform. Netflix is said to be arranging a massive bridge loan worth tens of billions of dollars to finance the deal.
If successful, the acquisition would significantly strengthen Netflix’s production power and add premium brands such as HBO and Warner Bros to its portfolio. However, analysts warn that such a deal would undergo intense antitrust scrutiny in the US and possibly other key markets.
Some Hollywood figures have expressed concern about the potential takeover, arguing that Netflix’s preference for streaming-first releases could reduce theatrical opportunities for future Warner Bros films. Filmmaker James Cameron recently said on the podcast The Town that allowing Netflix to acquire Warner Bros would be “a disaster.”
