Netflix’s Cash Bid for Warner Bros Set to Wrap Up Soon
Warner Bros Discovery has entered a second phase of bidding, featuring a predominantly cash proposal from Netflix, in an auction that may wrap up in the near future, according to a source. Bankers for Paramount Skydance, Comcast, and Netflix collaborated over the weekend to formulate enhanced proposals for all or part of Warner Bros, the source added. The bids are binding, allowing the board the opportunity to swiftly approve a deal if the terms are satisfied; however, they have not been characterised as final, according to the source. Netflix and Warner Bros Discovery did not provide a comment.
Last week, Warner Bros requested that bidders submit enhanced offers by December 1 following the receipt of initial buyout bids from Paramount Skydance, Comcast, and Netflix. Reports says that Warner Bros Discovery’s board had rejected Paramount’s mostly cash offer of nearly $24 a share for the company, valuing it at $60 billion, and publicly announced it would evaluate strategic options for the studio. The parent company of HBO and CNN announced in October that it was considering its options for sale.
Any potential deal involving Warner Bros Discovery would further consolidate the media industry following the $8.4 billion merger of Skydance Media and Paramount Global, which concluded a lengthy process characterised by political scrutiny and shareholder concerns. The studio responsible for the “Harry Potter” and DC Comics film franchises revealed in June its intention to divide into studio-centric and cable-focused units by next year, aiming to distinguish its expanding streaming business from its underperforming cable network unit.
