Netflix Takes the Lead in Bidding Battle for Warner Bros. Discovery

Netflix has emerged as the frontrunner in the race to acquire Warner Bros. Discovery (WBD) and has entered an exclusive negotiation period to finalise a potential deal. Multiple media reports suggest the streaming leader surged ahead after Paramount made a last-ditch attempt to secure the asset but failed to match Netflix’s momentum.

Sources cited in coverage indicate that Netflix has tabled an offer valuing WBD at approximately $28 per share, with the bulk of the proposal structured as a cash transaction. The sale process has moved at an unusually rapid pace. It began in October when WBD opened itself up to bids following multiple unsolicited approaches from Paramount. The company had initially aimed to close a deal by the end of December, adding urgency to negotiations.If the acquisition moves forward, Netflix would gain control of Warner Bros. Studios along with the HBO Max streaming platform, significantly expanding its content library and studio infrastructure. Paramount’s competing bid, in contrast, was aimed at purchasing the entire Warner Bros. Discovery entity, rather than its core studio and streaming assets alone.

Bloomberg has further reported that Netflix also proposed a substantial $5 billion breakup fee, payable to WBD if the agreement were to collapse, signalling the seriousness of its intent. Meanwhile, Comcast was also believed to be in the fray, with a bid focused specifically on acquiring the studio and streaming divisions.Paramount has publicly pushed back against the process. In a letter referenced by several reports, the company claimed it was the only bidder with a clear regulatory path to closing, while raising concerns that Netflix’s dominant position in U.S. and global streaming markets could attract intense antitrust scrutiny. Paramount also criticised the bidding process, suggesting it unfairly favoured Netflix.

Warner Bros. Discovery has maintained that its board has acted responsibly and in compliance with its fiduciary obligations throughout the sale discussions and will continue to do so as negotiations move into this exclusive phase.With exclusivity now in play, all eyes are on how talks between Netflix and WBD progress and whether regulatory hurdles or competing pressures could still reshape the final outcome.