Netflix Wins Bid to Buy Warner Bros., Exclusive Talks Begin

A new wave of reports has drawn attention to Netflix’s advancing negotiations with Warner Bros., placing the timing and details of the talks under closer scrutiny. The developments outline when the next major update may emerge, as the companies are reportedly moving through a crucial stage of the process.

Netflix and Warner Bros. begin exclusive talks for sale

Warner Bros. Discovery is said to be in exclusive talks to sell its film and TV studios, along with its HBO Max streaming service, to Netflix, according to Bloomberg. The outlet also reported that Netflix is offering “a $5 billion breakup fee if regulators don’t approve the deal.”

People familiar with the discussions said an announcement could be made “in the coming days” if talks remain on track. It is being said that Warner Bros., valued at over $60 billion, will complete its planned spinoff of cable networks before any sale closes.

The discussions place Netflix ahead of Paramount and Comcast after a competitive bidding process. Bloomberg reported that Netflix’s offer hit “$30 per share,” while CNN stated that Paramount had previously offered $27 per share. In a letter dated December 1, Paramount argued that its proposal was “more likely to pass muster with regulators.” Later, in a December 3 letter, its litigation counsel called the sale process “tainted.”

If finalized, the deal would give Netflix control of the HBO network and franchises such as The Sopranos, The White Lotus, Harry Potter, and Friends. WB’s assets also include its Burbank studios and entertainment archive.

Bloomberg Intelligence noted, “A $30-per-share offer implies a steep equity valuation of $75 billion for Warner Bros.’ assets.” The analysts also stated that a combined subscriber base of about 450 million would raise significant antitrust concerns.

It seems U.S. officials have already signaled scrutiny. Representative Darrell Issa wrote that the transaction could “result in harm to consumers,” while Senator Mike Lee shared similar concerns, according to Bloomberg.

However, if the deal closes, Netflix, founded as a DVD-by-mail service, would acquire one of Hollywood’s oldest studios.

Source: Comingsoon.net