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Netflix is preparing to submit an all-cash offer for Warner Bros Discovery's studio and streaming businesses, according to a source familiar with the matter, escalating one of Hollywood's most closely watched takeover battles. The move would replace Netflix's earlier cash-and-stock proposal and is designed to speed up a transaction that is expected to take months to complete and faces regulatory and political scrutiny.
The revised bid comes as Warner Bros weighs competing interest from Paramount Skydance, which has mounted a rival all-cash offer for the entire company, including its cable television assets. Paramount's proposal values Warner Bros at $108.4 billion, significantly higher than Netflix's earlier $82.7 billion bid focused on film and streaming operations.
Despite the headline valuation gap, Warner Bros' board has favored Netflix's offer, citing concerns over the level of debt financing underpinning Paramount's bid. Directors have argued that the structure of Paramount's proposal increases execution risk and could complicate the deal's completion, calling the offer inadequate despite revisions.
Those revisions include a $40 billion equity backing from Oracle co-founder Larry Ellison, the father of Paramount CEO David Ellison. Even so, Warner Bros remains wary of the financial leverage involved, according to people familiar with the deliberations.
Shares of both companies rose following the report. Netflix closed up just over 1%, while Warner Bros gained more than 1.6%. Paramount's shares were flat. Netflix declined to comment, and Warner Bros did not immediately respond to requests for comment.
At the heart of the bidding war is Warner Bros' vast and lucrative content library. The company owns globally recognized franchises such as "Harry Potter," "Game of Thrones," "Friends," and the DC Comics universe, alongside classic films including "Casablanca" and "Citizen Kane." Control of those assets would significantly strengthen any streaming platform's competitive position.
The contest has drawn political attention, with lawmakers across parties warning that further consolidation in the media industry could reduce consumer choice and push up prices. Paramount has already sued Warner Bros seeking more information on its agreement with Netflix and has signaled plans to nominate directors to the board.
