Netflix is in exclusive talks to become the highest bidder for Warner Bros.

After winning a difficult bidding procedure, Netflix has entered exclusive negotiations to purchase Warner Bros. Discovery's movie and television studios as well as the streaming service HBO Max.

These assets are valued at approximately $75 billion in equity in the deal, which was initially reported by Bloomberg on December 5, 2025. Netflix is proposing $28 per share in an all-cash transaction. This topped a $27 per share bid from Paramount, which targeted the full Warner Bros. Discovery company, including cable networks and a narrower offer from Comcast focused on studios and streaming.

Warner Bros. Discovery, created in 2022 from the WarnerMedia-Discovery merger has dealt with $43 billion in debt, falling ad revenues from linear TV and HBO Max subscriber churn. Shares are down over 70% since the merger, leading CEO David Zaslav to pursue sales for debt reduction. 

Netflix, serving 280 million subscribers worldwide, aims to expand its content library and production capacity through this acquisition. The deal would exclude cable assets like CNN, TBS, TNT, HGTV and Food Network, which Warner plans to spin off into a new entity by mid-2026.

Representatives for Netflix and Warner Bros. Discovery did not respond to requests for comment. No official statements are available from executives, including Zaslav, Netflix co-CEOs Ted Sarandos and Greg Peters or the companies. To mitigate regulatory hurdles, Netflix included a $5 billion breakup fee if antitrust issues block the deal.

An announcement may come soon, pending approvals that could take months.

Netflix edges out Paramount in high-stakes bid for Warner Bros. assets

On behalf of Paramount Skydance, the Quinn Emanuel legal firm wrote to Warner Bros. Discovery CEO David Zaslav on December 3rd, denouncing Warner Bros.' bidding process as "unfair" and "tainted" and claiming that, given Netflix's market dominance, their bid faced fewer approval risks.

Filmmakers have urged congressional review, while some Republican lawmakers highlight potential price hikes for consumers. Netflix counters that bundling services could cut costs and points to YouTube as the true competitor in video consumption. Regulators, including the U.S. Department of Justice and European bodies, may scrutinise the merger's impact on competition, with a possible legal challenge looming.

Paramount wrote a letter to Warner Bros. on December 1, saying-

"Several U.S. media outlets have reported on the enthusiasm by WBD management for a transaction with Netflix, and on statements by management that a transaction between WBD and Netflix would be a 'slam dunk,' while also referring to Paramount's bid in a negative light. 

Additional reporting since the submission of revised bids on December 1 has indicated that WBD's 'board has really warmed to' a transaction with Netflix due to the 'chemistry between' WBD management and Netflix management."

The process attracted bids from major players. Paramount, backed by Skydance and investors like Middle Eastern funds, raised its offer to $27 per share for all of Warner Bros. Discovery but lost out. Comcast targeted only the studios and HBO Max, falling short of Netflix's terms.

Netflix's focus on core content assets avoids the drag of declining cable operations.

This acquisition would give Netflix control of Warner's Burbank studios, the HBO brand and vast libraries including The Sopranos, Game of Thrones, Harry Potter and The Big Bang Theory. These have generated billions in licensing fees. 

Antitrust reviews will test the deal's viability, potentially reshaping content distribution and premium TV production.

Approval would combine HBO Max's 100 million users with Netflix's base, enabling faster growth in live sports and originals. Warner's cable spinoff would form a standalone, unscripted and news-focused company.

Viewers could see integrated apps and bundled pricing, though theatrical windows for Warner films might shrink, hitting cinemas harder.

More funds could flow to diverse content, but HBO's deliberate development style may clash with Netflix's volume approach.

Stay tuned for more such updates!