Netflix Enters Exclusive Negotiations to Acquire Warner Bros Discovery Studios and Streaming Assets

Netflix has entered exclusive negotiations to acquire Warner Bros Discovery’s film and television studios, along with its streaming operations, after submitting an offer valued at $28 per share, according to a source with direct knowledge of the discussions.

The parent company of HBO had been reviewing strategic alternatives and received a second round of bids this week following initial proposals from Netflix, Paramount Skydance and Comcast.

It was previously reported that Netflix emerged as the front runner with a bid consisting largely of cash. Its offer stands above Warner Bros Discovery’s Thursday closing share price of $24.54, and also exceeds a nearly $24 per-share proposal from Paramount, which sought to acquire all of Warner Bros Discovery’s assets—including its cable networks CNN, TNT and TBS.

The move underscores Netflix’s aggressive strategy to diversify beyond its traditional subscription model and broaden its revenue base. Control of Warner Bros Discovery’s extensive catalogue—which includes globally recognised franchises such as “Harry Potter,” “Game of Thrones,” and the DC Comics universe—would significantly elevate Netflix’s status as a vertically integrated entertainment conglomerate. The acquisition would also secure long-term access to premium intellectual property while reducing Netflix’s dependency on outside studios as it expands into gaming, live events and wider consumer-focused ventures.

Netflix has offered a $5 billion breakup fee should regulators block the acquisition, and suggested that the two companies may be ready to announce a formal agreement within days.

The possibility of such a transformative deal has alarmed prominent Hollywood stakeholders. Variety reported that a coalition of leading film industry figures has urged the U.S. Congress to intervene if Netflix succeeds in its takeover bid, warning that the move could trigger an economic and institutional crisis across the entertainment industry.

Tensions around the sale process escalated further after CNBC reported that Paramount accused Warner Bros Discovery of conducting an unfair sales procedure that allegedly advantaged Netflix. In a letter sent by Paramount’s newly merged media company, its legal team wrote, “We strongly urge you to empower such a special committee comprised of directors with no potential appearance of bias or beholdenness to others whose interests may differ from those of the stockholders.”.

In October, Warner Bros Discovery’s board rejected a roughly $60 billion offer from Paramount for the entire company and subsequently launched a formal process to sell individual assets.

By fLEXI tEAM