Netflix (NFLX.O) is in exclusive talks to acquire Warner Bros. Discovery’s (WBD.O) film and television studios along with its streaming assets, having offered $28 per share, according to a source with direct knowledge of the matter. The parent company of HBO has been exploring strategic options and received a second round of bids this week after Netflix, Paramount Skydance , and Comcast made preliminary buyout proposals.
As the top bidder, Netflix submitted a mostly cash offer, as previously reported by Reuters. The $28 per share offer is significantly higher than Warner Bros.’ closing price of $24.54 on Thursday and surpasses a prior offer from Paramount of nearly $24 for all of the company’s assets, which also include cable networks like CNN, TNT, and TBS.
Netflix is aggressively diversifying beyond its core subscription model to create new revenue streams. A deal with Warner Bros., which boasts valuable franchises such as “Harry Potter,” “Game of Thrones,” and DC Comics, would transform Netflix into a vertically integrated media powerhouse by providing it with one of Hollywood’s most valuable libraries.
This acquisition would grant Netflix exclusive long-term control over premium intellectual property, reducing its reliance on external studios as it expands into gaming, live entertainment, and broader consumer ecosystems. Bloomberg News reported that Netflix has included a $5 billion breakup fee in the event that regulators block the deal, and an announcement could come within days.
The news of a potential acquisition has prompted a consortium of leading film industry figures to urge the U.S. Congress to intervene if Netflix’s bid succeeds, warning of a looming economic and institutional crisis in Hollywood, as reported by Variety. Paramount has accused Warner Bros. of conducting an unfair sale process that favors Netflix over other bidders, as reported by CNBC, citing a letter sent by Paramount’s newly merged media company. In the letter, Paramount’s legal team urged the formation of a special committee composed of directors without any potential biases or conflicts of interest regarding stockholder interests.
Paramount did not immediately respond to requests for comment from Reuters. In October, the Warner Bros. board rejected a roughly $60 billion bid from Paramount for the entire company and subsequently launched a formal sales process for its assets.