Warner Bros acquisition: Netflix edges Comcast and Paramount with highest cash offer

Netflix, the global streaming giant, has made the highest cash offer to acquire TV and film group Warner Bros. Discovery. The offer was made in a binding bid submitted over the Thanksgiving weekend in the U.S., according to a report by Bloomberg.

According to Bloomberg, Netflix, which is primarily interested in the coveted Warner Bros. film and TV studios along with the HBO Max streaming service, joined Comcast and Paramount Skydance in the second round of a binding auction process that could conclude in the coming days or weeks.

This offer is a key part of a binding auction for the storied, yet debt-laden, Hollywood studio. The report noted that the sales could reshape the U.S. media landscape as the streaming giant hopes to secure premium content assets, dominate global content production and pay down the target company’s considerable debt.

“Warner Bros. is said to want $30 a share, and the company’s chair emeritus, John Malone, has said that number is ‘possible.’ The stock closed at $23.87 on Monday in New York, giving the company an equity market value of $59 billion. However, Netflix is working on a bridge loan that totals tens of billions of dollars,” the report said.

According to the report, bankers for the three primary bidders, which are Paramount Skydance Corp., Comcast Corp., and Netflix, were actively working over the long Thanksgiving weekend to finalise improved offers for all or part of Warner Bros. 

Paramount’s offer, while largely backed by the family of Oracle co-founder Larry Ellison, is also supported by debt financing from Apollo Global Management Inc. and contributions from Middle East funds. 

Since the offers are binding, the Warner Bros. Discovery board can quickly sign off on a deal if the proposed terms meet its goals. However, the company has not yet described the latest offers as final and would still consider another bid if the terms were deemed more attractive.

“Comcast and Netflix are interested only in the Warner Bros. studios and the HBO Max streaming service. Should one of their bids be accepted, Warner Bros. would continue with plans to spin off its cable channels as Discovery Global. The spinoff could occur by the middle of next year,” Bloomberg added.

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Backstory

According to Bloomberg, the parent company of HBO, CNN, and the Warner Bros. film studio formally put itself up for sale in October. This move came after it received several unexpected offers, causing the company to abandon its original plan to split into two separate entities.

The sale process was officially launched by Warner Bros. Discovery CEO David Zaslav after the company had already been targeted repeatedly by Paramount. 

Bloomberg added that Paramount itself was recently acquired by the billionaire family of Oracle founder Larry Ellison. His son, David Ellison, who is a movie producer and Paramount CEO, had submitted three offers for the entertainment group before the formal sale process began.

Netflix’s financial strength

In the third quarter of 2025, Netflix’s financial health remained strong, underpinned by a significant cash position and robust free cash flow generation. 

The company reported a substantial increase in its cash and short-term investments, which now total $18.7 billion, demonstrating ample liquidity for future strategic moves. The streaming giant generated $1.4 billion in free cash flow during the quarter, reflecting efficient operational management and strong collections from its growing subscriber base. 

This financial performance not only supports its massive original content investment but also provides the flexibility needed to pursue major opportunities, such as the proposed acquisition of Warner Bros. Discovery, without needing to take on excessive new debt immediately.

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