Netflix emerges front-runner in talks to buy Warner Bros Discovery: Reports

Netflix has pulled ahead in the race to buy Warner Bros. Discovery and is now entering an exclusive negotiation window to hammer out a final agreement.

According to multiple media reports, the development happened after Paramount made an aggressive push of its own to secure WBD but ultimately fell behind the streaming giant.

Sources cited in reports say Netflix has floated an offer valuing WBD at roughly $28 per share, with most of the payment structured in cash.

The sale process has been unusually brisk, beginning in October when WBD opened itself up to bids after receiving a trio of unsolicited offers from Paramount. The company had been aiming to lock down a deal before the end of December.

If completed, the transaction would hand Netflix control of Warner Bros. Studios as well as the HBO Max streaming platform.

Paramount’s proposal, in contrast, sought to purchase the entire Warner Bros. Discovery entity. Bloomberg has also reported that Netflix put a sizable $5 billion breakup fee on the table—money WBD would receive if the deal falls apart. Comcast was reportedly in the running as well, with a bid targeting the studio and streaming components.

Paramount has pushed back strongly on the process. In a letter referenced in reports, the company argued that it was the only bidder with a clear regulatory pathway to closing and warned that regulators would be unlikely to ignore the antitrust concerns posed by Netflix, given its dominant position in both U.S. and global streaming. The company also criticized the sale process as skewed toward Netflix.

WBD, however, maintained through statements cited in reports that its board has acted responsibly and in full alignment with its fiduciary duties throughout the bidding process and will continue to do so as negotiations move forward.