Netflix has submitted a mostly cash bid for Warner Bros. Discovery by the December 1 deadline, joining Paramount Skydance and Comcast in the second round of binding offers for the media giant. Warner Bros. Discovery put itself up for sale in October and is seeking a valuation closer to $70 billion, with its current market cap around $59 billion.
Paramount Skydance's previous offer was valued at $60 billion but was rejected as undervalued, with the company aiming for $30 per share, while the stock closed at $23.87. Netflix and Comcast are targeting specific assets like the Warner Bros. film studios and HBO Max streaming service, whereas Paramount Skydance wants to acquire the entire business, including cable networks and CNN.
Regulatory scrutiny is a major hurdle, especially for Netflix as the streaming market leader, due to antitrust concerns that could delay or block the deal. Warner Bros. Discovery hopes to finalize a sale by Christmas and plans a corporate split into Warner Bros. and Discovery Global by April 2025, separating streaming from declining cable assets.
Bankers worked through the Thanksgiving weekend to refine offers, and the board may enter exclusive negotiations soon, with the potential to reshape the media landscape and impact content libraries.
