Netflix has reportedly emerged as the front-runner in negotiations to acquire Warner Bros. Discovery (WBD), moving into an exclusive discussion period to finalise terms. This development follows a competitive bidding process, during which Paramount is said to have made an aggressive attempt to secure the company, but ultimately fell behind the streaming giant.
According to reports, Netflix has proposed an offer valuing WBD at approximately $28 per share, with a significant portion expected to be paid in cash. The sale process has moved rapidly since October, triggered when Warner Bros. Discovery received three unsolicited bids and subsequently opened itself to acquisition talks. The company is reportedly hoping to finalise a decision before the end of December.
If the deal moves forward, Netflix would gain ownership of Warner Bros. Studios and the HBO Max streaming platform, giving it substantial influence across both entertainment production and streaming markets. Reports also reveal that Netflix added a $5 billion breakup fee to its proposal a sum WBD would receive if the agreement collapses signalling strong confidence in closing the deal.
Other media giants, including Paramount and Comcast, were also in the running. Paramount’s offer allegedly sought to purchase the entirety of Warner Bros. Discovery and argued it had the most straightforward regulatory path. The company reportedly raised concerns about antitrust scrutiny surrounding a potential Netflix takeover, given its already dominant position in global streaming. Paramount further criticised the sale process, suggesting the structure favored Netflix.
Warner Bros. Discovery has maintained through statements cited in reports that its board has acted responsibly, ethically, and in line with fiduciary obligations throughout the ongoing talks. Negotiations are expected to continue as the company moves closer to a potential landmark industry deal.