Netflix is preparing an all-cash proposal to acquire the studios and streaming operations of Warner Bros Discovery, according to a source familiar with the discussions. The move is intended to streamline a transaction that is expected to take several months to complete and has already drawn political scrutiny as well as opposition from a rival bidder.
The development was first reported by Bloomberg News earlier on Tuesday. Netflix declined to comment on the report, while Warner Bros did not immediately respond to requests for clarification.
In market trading, Netflix shares ended the session up 1.02%, while Warner Bros shares gained 1.62%. Shares of Paramount closed flat.
Netflix’s earlier proposal valued the Warner Bros film and streaming assets at $82.7 billion, combining cash and stock. By contrast, Paramount submitted a $108.4 billion all-cash offer for the entire Warner Bros business, including its cable television operations.
Despite subsequent revisions to Paramount’s bid — including a reported $40 billion equity commitment from Larry Ellison of Oracle — Warner Bros has continued to favor Netflix’s offer. The company’s board has argued that Paramount’s proposal relies heavily on debt financing, increasing execution risk, and has described the bid as insufficient.
The contest between Netflix and Paramount has evolved into a high-stakes battle for Warner Bros’ film and television studios and its expansive content catalog. The company controls globally recognized franchises such as Harry Potter, Game of Thrones, Friends, and the DC Comics universe, along with classic films including Casablanca and Citizen Kane.
The takeover fight has become one of Hollywood’s most closely watched deals, as traditional studios grapple with the growing dominance of streaming platforms and increasingly unpredictable box office revenues. At the same time, lawmakers from both major U.S. political parties have warned that further consolidation in the media industry could raise consumer prices and limit choice.
Earlier this week, Paramount filed a lawsuit seeking additional disclosure around Warner Bros’ negotiations with Netflix and said it intended to nominate directors to the company’s board. Paramount maintains that its $30-per-share all-cash offer for the full business is superior to Netflix’s prior $27.75-per-share cash-and-stock proposal for only the studios and streaming assets, and argues that its bid would face fewer regulatory hurdles.
Under the current terms, Netflix has agreed to pay a $5.8 billion breakup fee if it fails to secure regulatory approval. Warner Bros, meanwhile, would owe Netflix $2.8 billion if it were to terminate the agreement in favor of another deal.
