- Netflix and Warner Bros Discovery entered exclusive talks regarding the company’s film
- The transaction could face close regulatory scrutiny in the United States and other countries
- Analysts say the deal would greatly strengthen Netflix’s content library
Netflix has reportedly taken the lead in the bid to acquire Warner Bros Discovery at around $28 per share, a deal that would bring major assets such as HBO, CNN, and Warner Bros studios under its control.
Eko Hot Blog gathered that Warner Bros Discovery had planned to split its operations into separate divisions for streaming and cable networks.
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However, in October, the company decided to entertain sale offers after receiving multiple unsolicited bids. Paramount, now owned by the family of Oracle founder Larry Ellison, was among the first to express interest, intensifying the bidding process.
Bloomberg reports that Netflix joined Paramount’s Skydance and Comcast, the parent company of NBCUniversal, in a second round of offers conducted over the Thanksgiving holiday. Paramount’s bid was reportedly close to $27 per share.
Following this, Netflix and Warner Bros Discovery entered exclusive talks regarding the company’s film and television studios and its streaming service, HBO Max.
To finance the potential acquisition, Netflix is reportedly arranging a multibillion-dollar bridge loan. Analysts say the deal would greatly strengthen Netflix’s content library and provide access to valuable Hollywood properties.
The transaction could face close regulatory scrutiny in the United States and other countries, as antitrust authorities review potential market impacts. Several Hollywood figures, including director James Cameron, have voiced concerns that a Netflix takeover could limit theatrical releases of major films.
So far, neither Netflix nor Warner Bros Discovery has offered public comments on the ongoing negotiations.
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