Netflix Plans All-Cash Bid for Warner Bros Discovery Studios Amid Intense Hollywood Takeover Battle

Netflix is reportedly preparing an all-cash offer to acquire Warner Bros Discovery’s studios and streaming businesses, signaling a major escalation in one of Hollywood’s most closely watched takeover battles. According to a source cited by Reuters, the move is designed to speed up a potential sale process that could still take several months to complete and has already drawn political scrutiny and competitive pushback.

The development was first reported by Bloomberg News. Netflix declined to comment on the report, while Warner Bros Discovery did not immediately respond to requests for comment. Following the news, investor sentiment turned positive, with Netflix shares closing up 1.02% on Tuesday and Warner Bros Discovery shares rising 1.62%. Paramount Global shares, another key player in the bidding war, remained flat.

Previously, Netflix had proposed a $82.7 billion deal structured with both cash and stock, targeting Warner Bros Discovery’s film studios and streaming assets. In contrast, Paramount has offered a significantly larger $108.4 billion all-cash bid for the entire company, including its cable television operations. Despite the higher valuation, Warner Bros Discovery has shown a preference for Netflix’s proposal.

Warner Bros’ board has raised concerns over Paramount’s reliance on substantial debt financing, arguing that it increases the risk of the deal failing to close and that the offer remains inadequate. Paramount has since revised its bid, including a $40 billion equity commitment backed by Oracle co-founder Larry Ellison, the father of Paramount CEO David Ellison, but resistance from Warner Bros persists.

The stakes are high, as Warner Bros Discovery controls some of the most valuable entertainment franchises in the world, including “Harry Potter,” “Game of Thrones,” “Friends,” the DC Comics universe, and classic films like “Casablanca” and “Citizen Kane.” The outcome could reshape the global media and streaming landscape as traditional studios grapple with declining theatrical revenues and the growing dominance of streaming platforms.

Regulatory scrutiny is also intensifying. Lawmakers from both major U.S. political parties have expressed concerns that further media consolidation could reduce consumer choice and increase subscription prices. Paramount has already taken legal action, suing Warner Bros Discovery to obtain more details about its agreement with Netflix and announcing plans to nominate new directors to the board.

Under the current terms, Netflix would pay a $5.8 billion termination fee if it fails to secure regulatory approval, while Warner Bros Discovery would owe Netflix $2.8 billion if it abandons the deal. As the bidding war continues, the battle between Netflix and Paramount is set to have lasting implications for the future of Hollywood and the streaming industry.