Netflix has surged ahead in the contest to acquire Warner Bros. Discovery (WBD), securing a position for exclusive negotiations after submitting what sources describe as the strongest bid so far.
The streaming giant reportedly offered about $28 per share, a proposal made up largely of cash.
The move marks one of the most aggressive expansion plays in Netflix’s history and positions the company to absorb some of the most coveted entertainment brands in the world — including Warner Bros. Studios, HBO, and DC.
A Fierce Bidding War
WBD opened itself to buyers in October after receiving repeated unsolicited offers from Paramount Global.
What followed was a fast-paced auction drawing heavyweights including Paramount and Comcast, each hoping to capture WBD’s vast content library and studio infrastructure.
Paramount made a full-company bid and has insisted that its offer was the most feasible from a regulatory standpoint.
In a letter sent to WBD, the company argued that both Netflix and Comcast would face significant antitrust scrutiny, especially given Netflix’s dominance in the streaming marketplace.
Reports also indicate that Netflix added a $5 billion breakup fee to its proposal, signaling confidence in its ability to close the deal.
Tensions Behind the Scenes
The high-stakes negotiations have reportedly led to friction among executives.
Paramount accused WBD’s leadership of steering the process in Netflix’s favor and raised concerns about potential conflicts of interest involving current management and their post-merger roles.
WBD has publicly rejected those claims, asserting that its board has acted responsibly and in full compliance with its fiduciary obligations.
One major unknown is the future of WBD CEO David Zaslav, whose contract was recently restructured to account for a sale.
Paramount had indicated interest in retaining him should their bid succeed, but his role under a potential Netflix takeover remains unclear.
What Netflix Stands to Gain
If negotiations succeed, Netflix would suddenly acquire one of Hollywood’s largest studio operations along with an enormous library that includes:
DC Universe
Harry Potter
Game of Thrones
Hanna-Barbera
Turner Entertainment
New Line Cinema
MGM’s pre-1986 catalog
Analysts say such a deal would be transformative.
Netflix, long focused on organic growth and rarely on large acquisitions, has historically lacked a deep, legacy IP vault — something rival studios have leveraged for theme parks, merchandising, and global franchises.
“This would give Netflix access to a vast library of globally recognizable properties and significant physical production power,” said Bank of America analyst Jessica Reif Erlich in a recent note, describing Warner Bros. as a “crown jewel” of Hollywood.
A Potential Shift in Theatrical Strategy
One concern within Hollywood is how Netflix would handle Warner Bros.’ theatrical commitments.
The streamer has traditionally favored short theatrical windows — often around 17 days — a sharp contrast to the 45-day window preferred by major cinema chains.
Netflix leadership has reportedly indicated that it would honor existing Warner Bros. theatrical plans, but exhibitors remain cautious.
Market Reaction
WBD stock surged nearly 6% in late trading, climbing to around $26, its highest level in a year and a massive rebound from its lows earlier in 2025. All major bidders were offering significant premiums to pre-auction valuation.
What’s Not Included
While Netflix is seeking the studio and streaming divisions, some assets are expected to remain outside a final deal. These include global television networks such as:
CNN
TNT Sports
Discovery’s lifestyle channels
Free-to-air networks across Europe
Discovery+
Bleacher Report
A Deal That Could Change Hollywood
If finalized, the acquisition would represent one of the most consequential shifts in the entertainment landscape in decades — giving Netflix unprecedented control over both streaming and studio production while eliminating a major competitor.
Regulators are expected to scrutinize the deal heavily, but for now, Netflix and WBD are preparing for closed-door negotiations that could reshape the future of global entertainment.