Netflix Wins Battle for Warner Bros. Discovery

In a deal that could dramatically reshape the entertainment industry, Netflix—led by Ted Sarandos and Greg Peters—is poised to win the battle for Warner Bros. Discovery (WBD) studios and the HBO Max streaming business.

Netflix has entered into exclusive talks with the David Zaslav–led WBD after topping rival bids from Paramount and Comcast, Alex Weprin reported for The Hollywood Reporter.

If finalized, the acquisition would alter the trajectory of streaming video, theatrical filmmaking, and studio production. (Image: Netflix) 

A number of steps remain before any deal can close, but if finalized, the acquisition would alter the trajectory of streaming video, theatrical filmmaking, and studio production.

Entering exclusive talks does not guarantee a definitive agreement, and even if one is reached, both companies would still need to navigate a complex regulatory environment in the US and abroad.

Paramount executives had believed their offer would face fewer regulatory hurdles than Netflix’s, given Netflix’s dominant position in subscription streaming, but that concern was not enough to overcome Netflix’s higher bid.

Specific deal terms were not immediately available, though they were clearly strong enough to justify exclusive negotiations.

CNN reported that Netflix offered $28 per share, while Paramount bid $27 per share—though Paramount was seeking to purchase the entire company, not just the studios and streaming assets.

Bloomberg, which first broke the news, reported that Netflix has included a $5 billion breakup fee should regulators block the deal—an enormous sum designed to offset concerns about antitrust challenges.