Does anyone remember when Netflix just distributed DVDs by mail? Netflix has officially taken the lead in one of the most dramatic entertainment shakeups in recent years. The streamer has secured what sources call the highest and winning bid for Warner Bros. Discovery and will enter exclusive talks to close the deal.
The stunning development capped a chaotic day during which Paramount made an aggressive last-minute push to secure WBD for itself. Instead, Netflix pulled ahead with an offer of $28 a share, according to insiders familiar with the negotiations.
Warner Bros. Discovery went public in October after receiving three unsolicited bids from Paramount. What followed was a fast-moving, high-stakes scramble among three major suitors: Paramount, Netflix, and Comcast.
Netflix’s proposal focuses on acquiring Warner Bros. Studios and the HBO Max streaming assets. Paramount had been pursuing a much larger deal that included all of WBD. Bloomberg reports that Netflix included a five billion dollar breakup fee in its offer in the event the deal does not close.
Paramount has maintained that it is the only bidder with a clear regulatory path. In a letter to WBD, the company argued that competing proposals from Netflix and Comcast raise antitrust concerns that federal regulators would be hard-pressed to overlook.
Despite that warning, the streamer now holds the exclusive position to finalize the deal with Warner Bros. Discovery that would be the most significant acquisition in its history. If completed, the deal would reshape the streaming landscape and give Netflix control over one of Hollywood’s most storied film studios and one of its most valuable libraries.
More details are expected as negotiations continue.
The days of just getting a DVD in your mailbox are over. They were anyway, but you know what we mean.
REELated:
Netflix submits enormous cash offer for WBD
