WBD Sale Heats Up as Netflix Leads and Paramount Cries Foul

Warner Bros. Discovery has entered another major phase of its ongoing sale process.

The company received a fresh round of bids on Thursday, and reports now say Netflix is currently viewed as the top contender.

The Netflix bid

The reports describe this round as more aggressive, with Netflix, Paramount, and Comcast still in play.

However, Netflix’s offer is said to be the strongest on both valuation and structure, a mostly-cash offer, closer to David Zaslav’s desire for $30 a share.

Netflix (and Comcast) is seeking WBD’s studio and streaming businesses, while Paramount is bidding for the entire company.

Update: A-list filmmakers have sent Congress a letter against a Netflix acquisition of WBD.

Update #2: Netflix has won the bidding war.

Paramount Pushes Back

Paramount is not happy with how things are unfolding.

The company sent a letter to WBD raising concerns about the bidding process and claiming it isn’t being treated fairly. Paramount has been vocal about its belief that it’s the most strategic fit, which adds another layer to the dispute.

Paramount’s letter to Warner Bros. Discovery argues the entire sale process has become unfair and appears structured to favor Netflix. The company questions whether WBD even established an independent special committee of disinterested board members, something Paramount says is essential to ensure a legitimate, unbiased auction. Paramount warns that without proper oversight, the process looks predetermined, undermining confidence in the bidding and disadvantaging every bidder who isn’t Netflix.

Paramount also put up a $5 billion breakup fee — payable to WBD if a deal is agreed but doesn’t go through — underscoring its confidence that its bid will clear regulatory review.

Update: Deadline adds that industry insiders say Paramount’s letter — sent from its Melrose lot to WBD’s Burbank headquarters — signals the company may pursue a court challenge or even a hostile-takeover move if WBD selects another buyer.

Comcast still in the mix

Comcast also just completed the spin-off of its cable networks and key digital assets into a new standalone company, Versant Media Group, a move widely seen as clearing regulatory hurdles and strengthening its position in the WBD bidding.

Winner Could Be Announced Next Week

The reports now indicate WBD expects to select a winning bid as early as next week. That timeline suggests internal decision-making has accelerated and the sale is close to reaching resolution.

The final choice will shape not just WBD’s future but the broader entertainment landscape, as control of DC, HBO, and Warner Bros. Pictures hangs in the balance.