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Netflix is in exclusive negotiations with Warner Bros. Discovery to purchase the company’s film and TV studios, along with the HBO Max streaming service, according to reports from several outlets. This development follows a competitive bidding war, with Netflix surpassing rivals Paramount and Comcast.
Reports from Deadline and CNN indicate that Netflix presented the most compelling bid, offering $28 per share for the acquisition of Warner Bros. Discovery’s studio and streaming divisions.
In contrast, Paramount Skydance proposed a slightly lower bid of $27 per share, which included the acquisition of Warner Bros. Discovery’s entire portfolio, encompassing cable networks such as CNN and TNT.
Comcast, on the other hand, submitted a proposal focused solely on acquiring Warner’s studio and streaming assets.
According to Bloomberg, both parties have commenced exclusive discussions, with Netflix proposing a $5 billion breakup fee to Warner in the event that regulatory bodies do not approve the transaction.
It is anticipated that both companies will formally announce the deal in the coming days, as highlighted in the report.
Both companies are expected to announce the deal publicly in the coming days, the report added.
What Do We Know About Paramount’s Bid?
Bloomberg and Variety reported that Paramount Skydance has cried foul over the sales process, labeling it “tainted”. In a letter sent to Warner’s CEO David Zaslav, Paramount’s attorneys alleged that Warner’s board had “embarked on a myopic process with a predetermined outcome that favors a single bidder,” refering to Netflix. The December 3 letter added that Warner appeared to have “abandoned the semblance and reality of a fair transaction process, thereby abdicating its duties to stockholders.” In an earlier letter sent on December 1, Paramount had argued that the Netflix deal would never get regulatory approval. “The simple truth is that a deal with Netflix as the buyer likely will never close…Netflix is the only remaining Big Tech company that has not faced serious global antitrust enforcement, but attempting to acquire the WBD assets will change that.”
This is a developing story.
