Netflix is in exclusive negotiations to acquire Warner Bros Discovery’s film and television studios, along with its streaming assets, after submitting an offer of $28 per share, according to a source with direct knowledge of the talks.
Warner Bros Discovery, the parent company of HBO, has been reviewing strategic options and received second-round bids this week. Netflix, Paramount Skydance, and Comcast all submitted earlier proposals as part of the buyout process.
Netflix emerged as the leading bidder and submitted a mostly cash offer, Reuters previously reported.
The $28 per share bid stands above Warner Bros Discovery’s closing stock price of $24.54 on Thursday. It also exceeds an earlier offer from Paramount, which proposed nearly $24 per share for all of Warner Bros Discovery’s assets, including cable networks such as CNN, TNT, and TBS.
Neither Netflix nor Warner Bros Discovery has yet responded to Reuters’ requests for comment.
Strategic Shift for Netflix
Netflix is moving aggressively beyond its subscription-based model as it seeks new revenue streams.
Acquiring Warner Bros Discovery would dramatically expand Netflix’s footprint. The company would gain control of major franchises such as Harry Potter, Game of Thrones, and DC Comics, transforming Netflix into a vertically integrated media giant with one of Hollywood’s most valuable libraries.
This deal would also give Netflix long-term access to high-value intellectual property and reduce its dependence on external studios as it expands into gaming, live content, and wider consumer experiences.
Bloomberg reported that Netflix has offered a $5 billion breakup fee if regulators block the deal. The companies could announce an agreement within days.
News of the potential acquisition has triggered pushback. According to Variety, a consortium of prominent film industry leaders has urged the U.S. Congress to intervene if Netflix succeeds, warning that the deal could create economic and institutional risks for Hollywood.
Paramount has also objected to the process. CNBC reported that Paramount accused Warner Bros Discovery of favoring Netflix over other bidders in what it called an unfair sale process. In a letter, Paramount’s legal team urged the formation of an independent committee with no conflicts of interest to oversee the sale.
Paramount did not immediately comment when contacted by Reuters.
In October, the Warner Bros board rejected a roughly $60 billion offer from Paramount for the entire company. It later launched a formal sale process for select assets.
