Netflix set to win bidding war for Warner Bros Discovery
Netflix is in exclusive talks to buy Warner Bros Discovery’s streaming and studio assets.
This breakthrough came after Netflix offered between $28 and $30 per share for Warner Bros Discovery, which is above its market value of $24.
As it stands, the Netflix bid is worth around $70 billion to $75 billion, which is significantly more than the market value of Warner Bros Discovery that is $60 billion.
According to Bloomberg, which first broke the news of exclusive talks, the latest bid has seen Netflix take a lead ahead of Paramount Skydance and Comcast in the race to buy Warner Bros Discovery.
Bloomberg also report that a deal between the two companies could be announced within the coming days. Additionally, as part of the offer, Netflix has reportedly tabled a $5 billion breakup fee if regulators block the deal.
The purchase of Warner Bros Discovery would give Netflix ownership of the HBO archives, which include classic shows like The Sopranos, The Wire, Game of Thrones, and Band of Brothers.
Film and television assets that Warner Bros Discovery owns include Harry Potter, Batman and Friends, as well as state-of-the-art studios in Burbank, California.
Other companies that belong to Warner Bros Discovery include CNN, HBO, DC Studios, TNT Sports, Eurosport, Warner Bros Pictures, Warner Bros Television Studios, NewLine Cinema, Adult Swim and Cartoon Network.
In October, Warner Bros Discovery confirmed it would be open to offers, with CEO David Zaslav saying in a statement, “It’s no surprise that the significant value of our portfolio is receiving increased recognition by others in the market.”
Zaslav continued, “After receiving interest from multiple parties, we have initiated a comprehensive review of strategic alternatives to identify the best path forward to unlock the full value of our assets.”
James Cameron recently spoke out on The Town podcast against Netflix’s takeover, claiming it would be a “disaster” for Hollywood.
Neither Netflix or Warner Bros Discovery have commented on new reports.
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