Netflix enters exclusive talks to acquire Warner Bros. Discovery assets

Netflix has reportedly moved ahead of rival bidders in its attempt to acquire major assets from Warner Bros. Discovery (WBD), including its film and TV studios and the HBO Max streaming service, according to multiple media reports.

Reuters reported that the platform has submitted the highest bid, escalating a potential deal that could reshape the global media and streaming landscape. Bloomberg News said the two companies have entered exclusive negotiations.

The platform has offered a $5 billion breakup fee if regulators block the transaction. A final agreement could be announced in the coming days.

The move puts the streaming platform ahead of Paramount’s Skydance and Comcast, which had also submitted bids. The Wrap reported that the platform emerged on top after a three-round bidding process, a sharp turnaround from two months ago, when the platform's co-CEO Greg Peters expressed skepticism about large media mergers.

The platform’s offer consists of roughly 85% cash, a structure that helped strengthen its position.

The deal would give the platform control over Warner Bros. studios, HBO Max, and a large catalog of intellectual property, including the Harry Potter franchise and DC Universe titles. Analysts said the combined libraries could enable the platform to bundle content in ways that reduce streaming costs for consumers.

However, the potential acquisition has raised concerns in Hollywood. Variety reported that a coalition of industry figures is urging the U.S. Congress to review the deal, warning it could “effectively hold a noose around the theatrical marketplace” by reducing output to movie theaters and forcing down subsequent licensing fees for home video windows.

WBD requested a new round of bids by Thursday after Paramount’s Skydance raised concerns that the process favored Netflix. Paramount’s legal team questioned the fairness and adequacy of the sale process in a letter to WBD CEO David Zaslav.

Prior to a potential sale to Netflix, Warner Bros. Discovery would complete its plans to spin off its cable channels, including CNN, TBS, TNT, TruTV and the Discovery Channel.

Despite these objections, the platform remains the frontrunner as exclusive negotiations continue.