Netflix Wins Bidding War for WBD, Enters Exclusive Deal Talks

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Netflix is close to finalizing a deal with Warner Bros. Discovery after reportedly winning a competitive bidding process, marking a significant change in the entertainment industry.

Netflix secured the deal at the price Warner Bros. Discovery was hoping for, successfully outbidding Paramount and Comcast after a day of fluctuating offers and behind-the-scenes negotiations.

The agreement isn’t final yet, as Netflix and Warner Bros. Discovery are still negotiating the details. Plus, reports suggest Netflix could be under regulatory review for several years.

Netflix Hits the Target Price

According to Deadline, Netflix made an offer of $28 per share to acquire the studio and HBO Max streaming service from Warner Bros. Discovery. The Wrap reports that Netflix ultimately reached the key price of $30 per share, which finalized the deal.

Both news sources report that Netflix agreed to a $5 billion breakup fee, the same amount Paramount included in its offer.

Warner Bros. Discovery (WBD) announced in October that it was looking for a buyer. Now, Netflix and WBD have started exclusive negotiations, meaning no other companies can make offers unless these talks fall apart.

Paramount and Comcast Lose Out

Paramount strongly responded earlier, claiming they were the only ones who could actually complete the deal. They worried that regulators would block Netflix and Comcast due to existing rules, and believed these concerns would ultimately prevent those companies from succeeding.

Despite concerns raised, Netflix’s more attractive offer ultimately won out. Even Paramount’s efforts to object – including claims that Warner Bros. Discovery’s process was unfair – couldn’t change the result.

A-list filmmakers also sent a letter to Congress against Netflix acquiring WBD.

Comcast also lost the bidding and wasn’t a major player in the final stages. However, Warner Bros. Discovery might still allow Universal theme parks to use its characters and stories, even after the sale is complete.

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

When Netflix first started creating its own shows, it often measured itself against HBO. Now, Netflix is close to actually buying HBO. If the deal goes through, it would dramatically change the entertainment world, giving Netflix an unmatched level of power over movies, streaming services, and well-known brands.

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

Investors are starting to worry, as Netflix’s stock price fell 5% following news about actual business progress – or a lack thereof.

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

Paramount might still try to buy Warner Bros. Discovery by appealing directly to its investors. They would only need support from 20% of long-term WBD shareholders to force a meeting to discuss a deal.

Currently, Netflix is in the strongest position to potentially acquire Warner Bros. Discovery – more so than any other company that has expressed interest.

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2025-12-05 07:32