Netflix in Exclusive Talks to Acquire Warner Bros. Discovery Assets for $75 Billion
Warner Bros. Discovery has entered exclusive negotiations to sell its film and TV studios, along with the HBO Max streaming service, to Netflix in a deal valued at approximately $75 billion. The offer of $28 per share, predominantly in cash, includes a $5 billion breakup fee should regulatory approvals falter. Shares of Warner Bros. surged 4.3% in premarket trading, while Netflix's stock dipped slightly by 0.6%.
The proposed acquisition outpaces competing bids from Paramount Skydance and Comcast, with Paramount CEO David Ellison having initiated earlier unsolicited offers. Warner Bros. had formally put itself up for sale in October, following strategic reviews. The transaction faces potential antitrust hurdles in both the U.S. and Europe, with lawmakers like California Republican Darrell Issa and Utah Senator Mike Lee already voicing concerns.
Prior to closing, Warner Bros. plans to complete the spinoff of its cable channels, including CNN, TBS, and TNT. The deal, if finalized, WOULD mark Netflix's largest-ever studio acquisition, significantly expanding its content library and production capabilities.