Netflix Enters Exclusive Talks to Acquire Warner Bros. Discovery

Warner Bros. Discovery has entered exclusive negotiations to sell its studios and HBO Max business to Netflix after the streaming giant topped rival bids from Paramount and Comcast, according to people familiar with the matter.

Netflix offered roughly $30 a share and agreed to a $5 billion breakup fee, giving it an exclusive window to finalize the deal.

All three companies submitted sweetened bids this week, but Netflix’s mostly cash offer beat out competitors after a three-round bidding war.

A deal would hand Netflix control of Warner Bros. studios, HBO Max and major IP franchises including “Harry Potter” and DC, a shift that would dramatically reshape Hollywood’s power structure.

The deal faces significant regulatory hurdles. Federal and state officials have already signaled antitrust concerns, including potential harm to content production and competition.

Rep. Darrell Issa and California Attorney General Rob Bonta have warned that further consolidation would raise red flags. The Justice Department is expected to scrutinize the agreement heavily.

Paramount, which previously accused Warner Bros. Discovery of running a “tainted” bidding process that favored Netflix, could still appeal directly to shareholders or attempt a hostile strategy.

Executives argue Paramount could close a transaction faster than Netflix given its experience navigating antitrust reviews during the Skydance merger.

Netflix shares fell 5% Wednesday amid investor concerns about the cost, regulatory review and Netflix’s limited experience in the theatrical market.

More updates expected as negotiations continue.