Netflix Nears Acquisition of Warner Bros Film and Streaming Assets
Netflix is reportedly finalizing a deal to acquire the film and streaming divisions of Warner Bros Discovery, according to multiple news outlets, including Reuters and The New York Times.
Bid Details
Netflix has emerged as the lead bidder, offering $28 per share for the specific segments of Warner Bros Discovery. This offer excludes other assets owned by Warner Bros Discovery, such as its cable networks.
Competing Offers and Concerns
Paramount initially submitted a bid in October to purchase the entire Warner Bros Discovery company, including its cable networks, for $24 per share. This offer was rejected by Warner Bros Discovery. Paramount later submitted a revised bid closer to $27 per share.
Paramount's legal representatives have formally questioned the sale process. In a letter reportedly reviewed by CNBC, Paramount's lawyers raised concerns about the "fairness and adequacy" of the process, alleging it favored a single bidder and was "myopic."
Warner Bros Discovery Assets
Warner Bros Discovery owns significant intellectual property, including major franchises such as Harry Potter and Game of Thrones, as well as the streaming service HBO Max.
Potential Regulatory Scrutiny
Financial analysts, including Emma Wall of Hargreaves Lansdown, have indicated that any successful acquisition of Warner Bros Discovery's assets by either Netflix or Paramount could prompt an review by U.S. competition regulators. Such a deal would result in a substantial consolidation within the global entertainment broadcast sector.