WBD: Netflix Emerges as Front-Runner

Warner Bros. Discovery's (WBD) board intensified its review of second-round acquisition bids on Wednesday, with Netflix positioning itself as the likely frontrunner through a mostly all-cash offer for WBD's studios and streaming assets—potentially valued at over $70 billion—while Paramount Skydance sweetened its full-company bid to $24 per share backed by Gulf sovereign wealth funds, and Comcast proposed merging the Warner Bros. studio into NBCUniversal with a management role for CEO David Zaslav, according to Bloomberg and Reuters reports. 

The developments, unfolding amid a stock surge of 83% for WBD since September, could lead to exclusive negotiations as early as this week, reshaping Hollywood's streaming landscape by bundling Netflix with HBO Max at reduced consumer costs and bolstering Netflix's IP arsenal with Warner's vast library of films, TV, and DC Comics. 

As the auction accelerates toward a possible year-end close, analysts at Bank of America hailed the scenario as a "historic transformation," warning of antitrust scrutiny but praising Netflix's potential to "kill three birds with one stone" by gaining theatrical distribution, premium content, and subscriber synergies without the baggage of WBD's declining cable networks.

Paramount Skydance's aggressive escalation on December 2 included a $5 billion breakup fee hike and fresh backing from Saudi Arabia's Public Investment Fund, Qatar Investment Authority, and Abu Dhabi's Mubadala—marking the first time all three major Gulf funds aligned on a single U.S. media deal—aiming to acquire the entirety of WBD, including CNN and legacy cable like TBS, in a cash-and-stock package that Ellison's team believes maximizes shareholder value despite regulatory hurdles from overlapping Paramount+ and Max services. 

Comcast's counteroffer, per Bloomberg, would fold Warner Bros. film and TV into NBCUniversal for cost savings, paying WBD shareholders cash and stock while offering CEO David Zaslav a leadership role; it excludes non-entertainment assets, likely forcing the breakup WBD had planned for mid-2026.Netflix’s bid proposes a discounted bundled Netflix–HBO Max tier, capitalizing on 80% subscriber overlap, and secures perpetual rights to Warner hits like The Batman and Dune, ending licensing costs. Despite a 2% stock dip on dilution fears (Reed Hastings sold $40M shares), BofA forecasts a 20-30% subscriber surge to 400 million.

The bidding frenzy, which kicked off in October after WBD's "strategic alternatives" review drew inbound interest, has already rejected an initial $23.50-per-share Paramount offer as too low, prompting the December 1 deadline for revised proposals that now pit tech disruptors against legacy giants in a zero-sum game for Hollywood's future.