Lead: Sources familiar with the confidential auction say Netflix submitted the highest bid so far for Warner Bros. Discovery’s studio and streaming business on Thursday, valuing those assets at about $28 per share. Paramount also filed a fresh offer late Thursday, near $27 per share, but its bid targets the entire company rather than only the studio and HBO Max. Insiders describe the process as intensifying into a full-scale media bidding war that places iconic brands such as HBO and DC Comics at stake. Reports that WBD and Netflix have moved into exclusive talks have further fueled market and regulatory scrutiny.
Key Takeaways
- Netflix’s most recent offer values Warner Bros. studio plus HBO Max at roughly $28 per share, according to people with knowledge of the auction.
- Paramount submitted a competing proposal close to $27 per share but is bidding on the whole Warner Bros. Discovery company, including cable channels such as CNN.
- Comcast and other parties have shown interest limited to studio and streaming assets rather than the full company.
- WBD’s CEO David Zaslav opened the sale process after signaling a plan to split the company; the split would separate the studio/HBO Max side from Discovery’s cable networks.
- WBD’s shares fell from about $25 at formation to a low of $7.52 after the 2022 merger, a collapse that helped prompt the auction.
- Paramount’s legal team has raised “grave concerns” over the auction’s fairness, suggesting a perceived advantage for a single bidder.
- Regulatory risk is high: U.S. antitrust review—and parallel scrutiny in the U.K., EU and parts of Latin America—could shape any final transaction timeline and structure.
Background
Warner Bros. Discovery was created in 2022 through a major media merger that combined vast studio resources, premium programming and broad cable distribution. After the merger, the combined company’s stock dropped significantly, prompting management and the board to explore strategic alternatives. In October, CEO David Zaslav announced a plan to split WBD into two publicly traded companies: one holding Warner Bros. studio and HBO Max, the other holding Discovery’s global cable networks, including CNN.
The sale process picked up in the fall when multiple bidders, led publicly by Paramount under CEO David Ellison, approached Zaslav and the board with proposals. Bidders have different strategic aims: Paramount has at times sought full ownership of WBD, while Netflix and Comcast have focused on the studio and streaming pieces. That difference in scope complicates direct comparisons of headline per-share numbers reported in the auction.
Main Event
On Thursday, sources say Netflix submitted the top single bid for the studio-and-streaming cluster at about $28 per share. Paramout’s competing bid, near $27 per share, was also lodged that day but aims to acquire the entire company. Company representatives declined to comment publicly, and the auction remains confidential; nonetheless, market leaks have shaped widespread perceptions of who currently leads.
Paramount’s lawyers formally complained to Zaslav, asserting the auction process may be skewed toward a preferred bidder. Analysts interpret that letter as a tactical move that could presage a more aggressive takeover strategy from Paramount if it believes procedural irregularities have disadvantaged it.
Late-day reporting indicated WBD and Netflix may have entered exclusive negotiations, a development that would mark a major step forward in deal-making. At the same time, WBD continues to state that its previously announced split plan remains on the table, leaving unresolved whether any sale would replace, modify or coexist with that corporate separation plan.
Analysis & Implications
If Netflix acquires Warner Bros. studio and HBO Max, the competitive landscape of global streaming would shift materially. Bank of America analysts warned that such a deal could hand Netflix an unmatched combination of content library, production capacity and subscriber reach—raising questions about market concentration and the intensity of future competition.
Regulatory hurdles are likely to be substantial. In the U.S., antitrust review could be protracted and contested; past litigation—such as the Department of Justice’s 2017 suit related to AT&T and Time Warner—shows these cases can take years. Sources and some analysts say Netflix might be prepared to engage in extended regulatory fights if the strategic upside justifies it.
Cross-border approvals are an added complication. Regulators in the U.K., EU and parts of Latin America will evaluate the transaction under local competition laws, and perceptions about U.S. political influence could sway foreign authorities’ posture. Observers caution that a deal cleared or advanced in Washington might face tougher skepticism abroad.
Comparison & Data
| Bidder | Target Scope | Reported Offer (per share) |
|---|---|---|
| Netflix | Warner Bros. studio + HBO Max | ~$28 |
| Paramount | Entire Warner Bros. Discovery (incl. CNN) | ~$27 |
| Comcast | Studio + streaming assets (reported interest) | Not publicly quantified |
The table clarifies that headline per-share figures reflect different deal scopes. Netflix’s higher per-share number applies only to the studio-and-streaming package, while Paramount’s slightly lower figure is for all outstanding WBD stock. Market capitalization differences also matter: Paramount’s market cap is roughly one-quarter that of WBD, which affects financing and strategic calculations.
Reactions & Quotes
Learning about Netflix’s ambition to buy its real competitive threat…should send alarm to antitrust enforcers around the world.
Sen. Mike Lee (posted on X; public official)
Sen. Lee’s public remark flagged regulatory concern among some lawmakers, particularly Republicans who monitor media consolidation risks.
If Netflix acquires Warner Bros., the streaming wars are effectively over; Netflix would become the undisputed global powerhouse of Hollywood.
Bank of America analyst note (financial analyst)
That analyst view frames the strategic upside lenders and investors are weighing, though it is an interpretation rather than a certainty about future market dynamics.
WBD’s auction process raises grave concerns about fairness and a predetermined outcome favoring a single bidder.
Paramount legal letter to WBD board (corporate counsel)
Paramount’s legal filing crystallizes the formal dispute over process and signals potential legal escalation if it deems the auction biased.
Unconfirmed
- Whether WBD and Netflix have entered binding exclusive negotiations remains unconfirmed by company statements.
- Which bidder will ultimately prevail is unresolved; reported leads are based on people familiar with the process, not on formal transaction documents.
- The degree to which the Trump White House or any administration officials will influence U.S. regulatory outcomes is a matter of interpretation and not established fact.
- How foreign competition authorities will rule—particularly in the U.K. and EU—remains unsettled and could materially alter deal prospects.
Bottom Line
The auction for Warner Bros. Discovery’s studio and streaming assets has escalated quickly, with Netflix’s roughly $28-per-share offer signaling a potential reshape of global streaming. Paramount’s full-company approach and its procedural challenge to the auction show that the outcome is far from decided, and legal or regulatory contests could stretch any timeline.
Investors, competitors and regulators will watch closely: a successful Netflix acquisition could centralize content ownership and production power, while a blocked or modified deal could leave the split strategy or alternative bidders as the next inflection points. For now, market-moving reports and formal filings deserve scrutiny, and confirmed company disclosures will be decisive in the weeks ahead.
Sources
- CNN (media report on bids and auction process)