Comcast Corp. has submitted a renewed offer to merge its NBCUniversal division—including the NBC TV network, film and TV studios, and theme parks—with Warner Bros. Discovery Inc. (WBD), positioning itself as a frontrunner in a heated bidding war for control of WBD's streaming and studio assets.
Under the proposal, WBD shareholders would receive a mix of cash and stock in the newly formed entity, with Comcast retaining majority control, according to sources familiar with the discussions.
The deal, reported by Bloomberg Tuesday, aims to create a media powerhouse by blending NBCUniversal's broadcast and experiential assets with WBD's content library, potentially supercharging streaming services like Peacock and Max.
This development escalates a multi-round auction for WBD, where Comcast is one of three bidders vying for its core entertainment operations.
The offer, sweetened from prior proposals, excludes Comcast's planned spinoff of cable networks like MSNBC and CNBC into a new entity called Versant, set for early 2026, and WBD's separation of channels such as CNN and TNT into Discovery Global.
The strategic rationale centers on consolidation in a streaming-dominated landscape, where scale is essential for survival amid cord-cutting and rising content costs. A merged entity would boast a vast on-demand catalog, bolstered live sports rights from NBC, and enhanced theme park synergies with Warner's IP like DC Comics and Harry Potter.
Analysts view this as Comcast's bid to fortify Peacock, which lags behind rivals like Netflix, by integrating HBO Max's premium library—potentially creating a top-tier streamer with robust theatrical and live-event offerings.
However, the deal faces steep hurdles: Antitrust regulators, including the FTC and DOJ, are likely to scrutinize any union of two Hollywood giants, given their combined dominance in production and distribution.
Competing bids underscore the frenzy: Netflix is pushing an all-cash play focused solely on WBD's studios and streaming, pledging to maintain theatrical releases for Warner films.
Paramount Global, backed by Apollo Global Management and Middle Eastern funds, has tabled a broader all-cash offer that includes WBD's cable assets—unlike Comcast's targeted approach.