Warner Bros. Discovery (WBD) remains at the center of an intensifying acquisition battle, with Netflix submitting a mostly cash bid for key assets, Paramount Skydance bolstering its all-cash proposal with Middle Eastern sovereign wealth funds, and Comcast vying for studios and streaming rights.
The second-round bids, due Monday, could lead to exclusive talks within weeks, potentially valuing the deal at $25–$30 per share and reshaping Hollywood's streaming and film landscape.
Key Bidders and Their Strategies
🠊Netflix: The streaming giant filed a binding, mostly cash offer targeting WBD's studios, TV production, and Max streaming service, arranging a multi-billion-dollar bridge loan to fund it despite its high stock valuation. Analysts at Bank of America call this a "three birds, one stone" play: bolstering content libraries, theatrical releases, and subscriber growth amid rising streaming costs averaging $70 monthly per U.S. household. However, it faces political backlash from Republicans over content like HBO's "Boots," a series criticized by the Pentagon as "woke."
🠊Paramount Skydance: Backed by Oracle founder Larry Ellison's family, RedBird Capital, Apollo Global for debt financing, and now sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi, this bid is all-cash at around $25 per share for the entire company—including cable networks like CNN and TNT. It's the only full-acquisition play, positioning it as a frontrunner, though regulatory hurdles loom from combining two studios (Warner Bros. and Paramount) and news outlets (CNN and CBS), potentially controlling 32% of U.S. box office.
🠊Comcast: The NBCUniversal parent submitted a structured bid (mix of cash and stock) focused on Warner Bros. film/TV and Max, leveraging synergies with Peacock and Universal Pictures. It makes operational sense for theatrical and streaming challenges but risks a protracted antitrust review, with exhibitors fearing reduced film output.
WBD CEO David Zaslav, holding $311 million in stock options, is pushing for sweetened terms after rejecting an initial $23.50–$24 per share Paramount offer. The company aims to close by late December 2025, though regulatory approval could extend to 2026.
Latest Developments
- Bids are binding but not final: WBD may narrow to one suitor soon, per Bloomberg and Reuters reports. James Cameron publicly endorsed Paramount Skydance, warning a Netflix takeover would be a "disaster" for theatrical filmmaking.
- Stock reactions: WBD shares surged 85% since the initial Paramount leak in October, trading around $25 amid speculation of $30+ valuations.
- No deal yet: If bids fall short, WBD proceeds with its planned mid-2026 split into Warner Bros. (entertainment) and Discovery Global (cable/non-fiction).