Netflix is preparing an all-cash bid for Warner Bros Discovery’s studios and streaming business. A source familiar with the talks confirmed the plan. The move aims to speed up a sale process that could still take several months.
Netflix declined to comment. Warner Bros Discovery did not immediately respond.
Rival Bids Shape the Sale Process
Netflix’s proposed deal is valued at about $82.7 billion. It targets Warner Bros’ film and streaming assets only. Rival bidder Paramount Skydance has offered $108.4 billion in cash for the entire company, including its cable television operations.
Warner Bros’ board prefers Netflix’s offer. Directors say Paramount’s bid depends heavily on debt financing. They argue this raises the risk that the deal may not close. The board has also said Paramount’s proposal remains inadequate despite recent changes.
Stocks React to Deal News
Shares of Netflix rose more than 1% after the report. Warner Bros Discovery shares also gained. Paramount shares showed little movement.
Why Warner Bros Assets Matter
Warner Bros owns some of Hollywood’s most valuable content. Its portfolio includes Harry Potter, Game of Thrones, Friends, DC Comics titles, and classic films such as Casablanca and Citizen Kane.
The bidding battle highlights how major studios are adjusting to the shift toward streaming. It also reflects pressure from unstable box-office revenues.
Legal and Regulatory Risks Remain
Paramount has asked Warner Bros for more details about its talks with Netflix. It has also said it plans to nominate new board members. Meanwhile, lawmakers continue to warn that media consolidation could reduce consumer choice and raise prices.
To manage regulatory risk, Netflix agreed to pay a $5.8 billion termination fee if approval fails. Warner Bros would owe Netflix $2.8 billion if it exits the agreement.
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