A major shift in Hollywood is underway as Netflix has reportedly won the bidding war for Warner Bros. Discovery and entered exclusive talks to finalize a deal.
The trades report Netflix hit the price WBD wanted, beating out Paramount and Comcast after a volatile day of counteroffers and back-channel maneuvering.
It should be said the deal is far from completed, as Netflix and WBD still have to finish the talks. It’s also been reported that Netflix will face years of regulatory scrutiny.
Netflix Hits the Target Price
Deadline reports that Netflix offered $28 a share for Warner Bros. Discovery’s studio and HBO Max assets. The Wrap adds Netflix hit the “magic” $30-a-share figure that sealed the exclusive window.
Both outlets confirm Netflix included a massive $5 billion breakup fee, matching the protection Paramount added in its own bid.
WBD put itself up for sale in October. Today’s development marks the beginning of exclusive deal negotiations between Netflix and Warner Bros. Discovery, a stage that shuts out all other bidders unless talks collapse.
Bloomberg first reported the news.
Paramount and Comcast Lose Out
Paramount aggressively countered earlier in the day, arguing it was the only bidder with a “clear path to closing.” Its concerns centered on regulatory issues with Netflix and Comcast, which Paramount insisted regulators would reject.
But the higher Netflix offer appears to have outweighed those warnings. Paramount’s separate push — including letters accusing WBD leadership of running a “tainted” process — wasn’t enough to stop the outcome.
A-list filmmakers also sent a letter to Congress against Netflix acquiring WBD.
Comcast was also outbid and never emerged as a serious final contender, though WBD may still license out its IPs to Universal theme parks ahead of the sale.
What Netflix Would Get
By moving into exclusive talks, Netflix is positioned to acquire:
- Warner Bros. Studios
- HBO Max
- Major IP including Harry Potter and DC
- All associated content libraries and production infrastructure
Netflix long compared itself to HBO when it began original programming. It now stands on the brink of owning HBO outright. If completed, the acquisition would massively reshape the entertainment industry and give Netflix unprecedented control over film, streaming, and legacy franchises.
Regulatory Battles Ahead
The deal isn’t simple. Netflix faces the toughest regulatory fight of all three bidders.
- DOJ antitrust scrutiny is expected
- Rep. Darrell Issa has already warned the merger would harm competition
- California AG Rob Bonta previously opposed WBD-related consolidation
- Netflix’s entry into traditional theatrical distribution is another wild card
- Trump favors Paramount
Investor concerns are already visible, with Netflix’s stock dipping 5% after reports of real deal momentum.
A Chaotic Final Round
The third round of bidding turned ugly:
- Paramount accused WBD of abandoning a fair process
- Paramount warned Netflix’s offer wouldn’t survive regulators
- Two Paramount letters leaked, signaling the company saw the writing on the wall
- Paramount had previously tried to shut down rivals with an early $19-a-share bid, but had bids rejected three times
Paramount could still attempt a hostile takeover pitch to shareholders. Only 20% of long-term WBD shareholders are needed to call a special meeting.
Still, as of now, Netflix holds the exclusive negotiating position — the closest any bidder has come to actually acquiring Warner Bros. Discovery.
