Netflix has reportedly become the leading bidder to acquire Warner Bros Discovery (WBD). According to Bloomberg and other US media outlets, the proposed offer values WBD at between US$28 and US$30 per share, putting the potential acquisition in the range of US$70 billion (~RM287.67 billion) to US$75 billion (~RM308.3 billion).
Warner Bros Discovery, the parent company of HBO, HBO Max, CNN and the Warner Bros film studio, formally put itself up for sale in October after receiving unsolicited offers. The move paused an earlier plan to split the company into two units covering streaming and studios, and traditional cable networks. Companies including Paramount, Skydance and Comcast also joined a second bidding round before the latest development.
Netflix’s bid reportedly includes a US$5 billion (~RM 20.6 billion) breakup fee if US regulators reject the deal. Paramount had offered a similar termination fee and had argued in a letter to WBD earlier this week that its bid would face fewer regulatory barriers. Paramount also criticised the process as “tainted”, alleging that the auction favoured Netflix.
If completed, the acquisition would hand Netflix ownership of major entertainment assets, including Warner Bros studios and HBO, home to titles such as Succession, The Sopranos and Game of Thrones. The streaming giant has reportedly assured WBD that it will preserve wide theatrical distribution for major Warner Bros films, including franchises like Harry Potter and Batman.
Bloomberg reports that Netflix is arranging a bridge loan worth tens of billions of dollars to finance the acquisition. The company currently has more than 280 million global subscribers and would significantly expand its studio and content pipeline if the deal proceeds. Before finalising any agreement, Warner Bros Discovery plans to complete a spin-off of its cable networks, which include CNN, TBS and TNT.
Regulatory scrutiny is expected to be one of the biggest hurdles, as the merger would combine two of the largest streaming services in the US. Analysts say approval from US authorities, as well as potentially regulators in other major markets, will likely determine whether the sale goes through.
(Source: Bloomberg)
