Netflix Makes Highest Bid to Acquire Warner Bros. Discovery

Netflix has submitted the highest bid so far in the ongoing battle to acquire Warner Bros. Discovery, TheWrap has learned. The streamer’s bid is primarily in cash.

This could make all the difference in the heated media battle, though the David Zaslav-led entertainment giant asked for a third round of bids due Thursday that could change the game once again. Before Comcast, Netflix and Paramount started duking it out in earnest over WBD in late November, Paramount submitted three different offers to acquire all of Warner Bros. Discovery. The highest offer was for $23.50 per share, comprised of 80% cash and 20% stock. All three offers were rejected for being too low.

Netflix declined to comment for this story. Representatives for Warner Bros. Discovery did not immediately return a request for comment.

Netflix’s bid to acquire WBD has raised antitrust concerns, something that Republican Rep. Darrell Issa addressed in a November letter to U.S. Attorney General Pam Bondi, FTC chairman Andrew Ferguson and Department of Justice Antitrust Division Assistant Attorney General Gail Slater. Netflix is the clear leader when it comes to premium streaming, according to Nielsen data. Acquiring with HBO Max, which is largely considered to be the fourth-largest streamer, would be a massive disruptor in the streaming landscape. Netflix’s prime competitor in the sector now is YouTube, which consistently dominates Nielsen’s Gauge report of streaming viewership.

Their bid has also sent warning signs to movie theater owners, given the company’s notoriety for keeping their films out of theaters.

But David Ellison’s Paramount stands as the streaming giant’s toughest competitor in the battle for Warner Bros. Discovery. The company sent two letters to WBD’s legal team this week, one Monday warning them that a Netflix deal would likely never close due to regulatory issues; and one Wednesday accusing the board of favoring Netflix during negotiations.

The auction for WBD is expected to conclude at the end of this month.

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