The sale of Warner Bros. Discovery (WBD) has taken a dramatic turn. Netflix has submitted a major cash offer for the studio in the second round of bidding, a surprising move that positions the streaming giant as a serious contender in one of the entertainment industry’s biggest shakeups.
The first round of offers was submitted on November 20 by Netflix, Paramount Skydance and Comcast. Those bids were nonbinding. Warner Bros. Discovery then called for a second round, asking for higher bids that would carry real weight with the company’s board. The new deadline was December 1.
According to Bloomberg, Netflix responded by submitting a massive offer financed largely in cash. Sources say the company is arranging a bridge loan to support the bid, which is reported to be worth tens of billions. Unlike the previous round, these latest offers are binding and can be approved by Warner Bros. Discovery’s board if the terms are deemed acceptable.
Comcast, Paramount and Netflix bankers reportedly worked through the Thanksgiving weekend to finalize their proposals. The auction process is expected to wrap up soon, potentially within days or weeks. Netflix’s number tracks with earlier reports that Paramount submitted a sixty billion dollar bid for the studio.
Netflix’s move surprised many in the industry. Variety recently noted that the streamer was expected to offer stock rather than cash. The size of the new bid signals a stronger interest in Warner Bros. Discovery than previously believed. Where Netflix had once been viewed as a bidder who might simply drive up the price for Paramount Skydance, the company now appears to be a frontrunner.
A merger between Netflix and Warner Bros. Discovery would have major implications for the industry. Netflix has long signaled a preference for streaming over theatrical releases, a stance that has made some insiders uneasy. Yet Bloomberg reported in November that Netflix intends to maintain theatrical releases if it acquires WBD and will honor all existing theatrical agreements. The company has also been slowly warming to the idea of larger theatrical footprints for major films.
Paramount Skydance remains aggressive in the pursuit. After submitting three upwardly revised offers, the company was even considering a hostile bid that would bypass the Warner Bros. Discovery board and go directly to shareholders. With Netflix’s new offer on the table, attention now turns to how Paramount and Comcast respond.
Comcast is primarily interested in the studio assets. If successful, the company would likely split WBD into two operations, Warner Bros. and Discovery Global. Netflix would pursue the same structure. Paramount Skydance is the only bidder seeking to acquire Warner Bros. Discovery in its entirety. If Comcast or Netflix ultimately secures the deal, the proposed asset split would take place in 2026 as planned.
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