Netflix is preparing to submit an all-cash offer for Warner Bros Discovery’s film studios and streaming business, according to a person familiar with the matter, setting the stage for a high-stakes takeover contest with Paramount.
The proposed transaction comes as Paramount, backed by Skydance, has tabled a competing all-cash bid for the entire Warner Bros Discovery group, including its cable television networks.
Warner Bros Discovery leans towards Netflix proposal
Sources indicated that Warner Bros Discovery has so far shown a preference for Netflix’s proposal, even after Paramount revised its offer and added fresh equity backing to strengthen its bid.
Netflix’s initial proposal values the film and streaming assets at $82.7 billion, focusing on Warner Bros’ core content engine and its direct-to-consumer platforms. In contrast, Paramount’s rival bid stands at $108.4 billion for the full company.
The Warner Bros Discovery board has earlier flagged concerns over the scale of debt financing embedded in Paramount’s offer, citing potential execution challenges and financial risk.
Paramount challenges process, seeks board influence
Paramount has moved to contest the ongoing talks by filing a lawsuit demanding greater transparency around discussions with Netflix. The company has also said it intends to nominate its own candidates to Warner Bros Discovery’s board.
It has argued that its all-cash proposal offers greater deal certainty and could face fewer regulatory obstacles than a partial asset sale to Netflix.
Markets react, political scrutiny grows
Following reports of the potential bid, shares of both Netflix and Warner Bros Discovery closed higher in US trading, while Paramount’s stock was largely unchanged.
Neither Netflix nor Warner Bros Discovery issued an official comment on the developments.
The takeover battle has also attracted political attention in Washington, with US lawmakers expressing concerns over increasing consolidation in the media and entertainment industry.
Industry analysts say the outcome could reshape Hollywood’s power structure as traditional studios grapple with slowing television revenues, rising content costs and intensifying competition from global streaming platforms.
