Netflix in Exclusive Negotiations for Warner Bros. Discovery Deal

Netflix is reportedly in exclusive discussions with Warner Bros. Discovery to purchase the companys film and television production units along with the HBO Max streaming platform, according to industry sources. This follows a protracted bidding contest involving Netflix, Paramount Skydance, and Comcast.

Paramount Skydance, led by its new CEO David Ellison, aimed to acquire Warner Bros. Discovery entirely through an all-cash transaction, while Netflix and Comcast focused their bids solely on the studio and streaming divisions.

Before any potential sale to Netflix, Warner Bros. Discovery plans to spin off its cable networks, including CNN, TBS, TNT, TruTV, and the Discovery Channel. The news comes amid months of speculation and concern within the media and entertainment sector regarding the future of Warner Bros. Discovery.

Ellisons Paramount initially submitted a strong offer, approximately $27 per share, positioning itself as the most aggressive contender. Netflix and Comcast entered the race later, intensifying competition. The bidding reached its peak with offers submitted on Monday, while Paramount criticized Netflix on Thursday morning, claiming that conflicts of interest among Warner Bros. Discovery management may have influenced the process.

Paramounts bid included support from three Middle Eastern sovereign wealth funds. If Netflix successfully acquires Warner Bros. Discovery, the deal would significantly reshape the media landscape, granting Netflix ownership of the extensive Warner Bros. library, including DC Comics properties, HBO content, Harry Potter, and over a century of films.

Author: Maya Henderson