Netflix Enters Exclusive Deal Talks for Warner Bros. Discovery
Netflix has entered exclusive talks with Warner Bros. Discovery to acquire the company’s film and television studio, as well as the HBO Max streaming service, Variety confirms.
The development comes after a weeks-long bidding war for the assets at Warner Bros. Discovery between Netflix and rivals Paramount Skydance and Comcast. Paramount Skydance, under the newly minted studio CEO David Ellison, had sought to acquire the entirety of Warner Bros. Discovery in an all-cash deal, while both Netflix and Comcast only submitted bids for the company’s studio and streaming.
Prior to a potential sale to Netflix, Warner Bros. Discovery would complete its plans to spinoff its cable channels, including CNN, TBS, TNT, TruTV and the Discovery Channel.
The news follows months of speculation and anxiety in the larger entertainment and media sector surrounding the potential sale of Warner Bros. Discovery. Ellison’s Paramount was the first and, arguably, most aggressive bidder at roughly $27 per share for the whole of Warner Bros. Discovery. Netflix and Comcast came in later to solidify an intense horse race.
The bidding war saw highest offers submitted Monday. Paramount went nuclear Thursday morning, accusing Netflix of impropriety surrounding its bid for the legendary studio, arguing that it “has a credible basis to believe that the sales process has been tainted by management conflicts, including certain members of management’s potential personal interests in post-transaction roles and compensation.”
Paramount’s offer submitted on Monday included financial backing of three Middle Eastern sovereign wealth funds, Variety reported.
Should Netflix and Warner Bros. Discovery reach a deal, it would mark a seismic transformation to the media landscape. As the leader in paid streaming services, Netflix has grown into the biggest company in Hollywood, bigger than the combined net worth of traditional studios. The acquisition would give the streamer rights to the Warner Bros. library, including comic book characters at DC Studios, HBO series, Harry Potter and over 100 years of output from the film studio.
More to come …
