In a potential industry-altering move, streaming titan Netflix has positioned itself as the leading contender to acquire Warner Bros Discovery’s film and streaming divisions. Multiple authoritative sources including Reuters and The New York Times confirm Netflix has tabled a $28 per share offer, surpassing competing bids from media conglomerates Comcast and Paramount Skydance.
The acquisition battle intensified as Paramount submitted a revised offer approaching $27 per share on Thursday, according to CNN. This follows Paramount’s earlier $24 per share bid for the entire Warner Bros enterprise—including cable assets like CNN—which was rejected in October prior to Warner Bros formally initiating sale proceedings.
Legal tensions have emerged with Paramount’s legal representatives questioning the “fairness and adequacy” of the sales process in correspondence obtained by CNBC. The lawyers alleged Warner Bros had conducted “a myopic process with a predetermined outcome that favors a single bidder.”
Financial analyst Emma Wall of Hargreaves Lansdown characterized the situation as “a drama for people who make drama,” highlighting fundamental differences between the competing proposals. “Netflix’s bid targets only the high-performing segments—the film and streaming operations including HBO Max and valuable franchises like Harry Potter and Game of Thrones,” Wall explained to BBC’s Today programme. “Paramount’s offer encompasses the entire business, including components that have historically constrained profitability.”
Wall further noted Paramount’s unusual strategy of publicly challenging the sales process potentially undermines their position: “You’re sort of tainting your offer if you go into a spat.”
Regardless of the eventual outcome, regulatory scrutiny appears inevitable. Wall emphasized that “this will create a global megapower in broadcast entertainment which the regulator will want to look at,” suggesting the U.S. competition authority will likely examine any finalized deal for potential market concentration concerns.
The involved parties—Netflix, Warner Bros, and Paramount—have not issued official statements regarding the ongoing negotiations.