Netflix Eyes Major Deal as it Enters Exclusive Talks to Buy WBD Assets for $28/Share

According to various media reports, Netflix is in exclusive negotiations to purchase Warner Bros. Discovery's film and television studios as well as its streaming assets for $28 per share. Following initial acquisition proposals from Netflix, Paramount Skydance, and Comcast, the parent company of HBO, which has been considering strategic options, received a second wave of bids this week.

 According to earlier reports from Reuters, Netflix, the highest bidder, made an offer that was primarily in cash. The $28 per share offer contrasts with Warner Bros.' Thursday closing price of $24.54 and Paramount's prior offer of around $24 for all of the company's assets, which also include cable networks like CNN, TNT, and TBS.

Netflix Exploring New Revenue Streams

In an effort to generate new revenue streams, Netflix is actively expanding beyond its core subscription model. Netflix would become a vertically integrated media monster and acquire one of Hollywood's most valuable libraries through a partnership with Warner Bros., whose properties include "Harry Potter," "Game of Thrones," and DC Comics.

As it grows into gaming, live entertainment, and larger consumer ecosystems, Netflix would reduce its dependency on outside studios and acquire exclusive long-term control over premium intellectual property. According to Bloomberg News, the businesses could announce the transaction in a matter of days, and Netflix has proposed a $5 billion breakup fee if authorities veto the deal.

Warner Bros Choosing Netflix Over Paramount

Variety, a US-based media house, stated that a group of prominent figures in the film industry have called for the U.S. Congress to step in if Netflix's bid is successful, citing an impending institutional and economic crisis in Hollywood. Citing a letter from its recently combined media firm, CNBC reported on 4 December that Paramount has accused Warner Bros. of conducting an unethical sale process that gives Netflix an advantage over other bidders.

As stated in the letter, Paramount's legal team urged Warner Bros. to establish a special committee made up of directors who would not appear to be biased or answerable to anyone whose interests might not align with those of the stockholders. The Warner Bros. board started a formal sales process for its assets after rejecting Paramount's approximately $60 billion bid for the entire firm in October.