Netflix Bids for Warner Bros Discovery

Netflix has intensified the battle for control of Hollywood’s legacy assets by submitting a mostly cash offer to acquire the debt-ridden media giant Warner Bros Discovery. This move places the streaming leader in direct contention for a deal that could fundamentally reshape the American media landscape.

The streaming titan has joined a competitive field of suitors, including Paramount Skydance and Comcast—the owner of NBCUniversal—in the second round of an auction. Negotiations for the entertainment group reportedly continued throughout the US Thanksgiving holiday.

The Bidding War

Warner Bros Discovery, the parent company of premium brands such as HBO, CNN, and the historic Warner Bros film studio, officially put itself up for sale in October.

This decision followed the receipt of multiple unsolicited offers and replaced a previous strategic plan to split the company into two separate entities: one focused on streaming and studios, and the other housing its traditional cable networks.

Prior to the official sale process, the company was heavily targeted by Paramount. The rival studio, recently acquired by the billionaire tech family of Oracle founder Larry Ellison, saw its CEO David Ellison make three consecutive offers for the group before Warner Bros Discovery CEO David Zaslav opened the formal auction.

Financing the Mega-Deal

To fund the potential acquisition, Netflix which currently boasts over 280 million subscribers worldwide is securing a massive bridge loan totaling tens of billions of dollars.

If successful, the deal would significantly bolster Netflix’s content library, granting it ownership of some of the industry’s most prestigious intellectual property and production facilities.

Regulatory and Industry Headwinds

However, a merger of this magnitude faces significant hurdles. The acquisition would likely trigger intense scrutiny from antitrust authorities in the United States and other major global markets due to the sheer dominance it would grant Netflix in the entertainment sector.

Furthermore, the potential takeover has sparked anxiety among top Hollywood creative figures. Many industry heavyweights have expressed opposition to Warner Bros falling under Netflix’s control, fearing that the streaming giant would prioritize digital release windows over theatrical distribution.

Prominent voices, including “Titanic” director James Cameron, have publicly criticized the prospect, describing a Netflix takeover of the historic studio as a potential “disaster” for the film industry.

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