Netflix Said To Have Made 85% Cash Bid For Warner Bros. Discovery: Report

• CNBC confirmed Netflix’s proposal on Thursday morning. 
• Comcast and Netflix, unlike Paramount, are attempting to acquire the company’s movie and television studios and streaming service.
• Paramount Skydance has reportedly called out Warner Bros., saying its ongoing sale process may be rigged in favor of one bidder.

Netflix Inc. (NFLX) has reportedly submitted a predominantly cash offer to acquire Warner Bros. Discovery (WBD), believed to consist of 85% cash and the rest in stock.

CNBC confirmed the proposal on Thursday morning. 

Bidding For WBD

Warner Bros. drew investor attention after the entertainment giant received initial bids from Paramount, Skydance, Comcast, and Netflix and asked the potential buyers to present improved offers.

Comcast and Netflix, unlike Paramount, are attempting to acquire the company’s movie and television studios and its streaming service, HBO Max, alone. The companies are not interested in Warner Bros. Discovery’s cable TV networks, including CNN and TNT Sports.

Netflix’s stock traded over 1% lower on Thursday morning. On Stocktwits, retail sentiment around the stock jumped to ‘bullish’ from ‘bearish’ territory the previous day. Message volume improved to ‘extremely high’ from ‘low’ levels in 24 hours. 

Last week, a report suggested Comcast’s chief, Brian Roberts, is weighing a fresh offer for WBD’s studio and streaming segments that could reach as high as $27 to $28 per share. 

Meanwhile, Paramount Skydance has formed an investment consortium including Saudi Arabia’s Public Investment Fund (PIF), the Qatar Investment Authority (QIA), and the Abu Dhabi Investment Authority (ADIA) and is expected to submit a $71 billion bid. 

Paramount Questions WBD Sale Deal

Paramount Skydance has reportedly called out Warner Bros., saying its ongoing sale process may be rigged in favour of a single bidder and that the process lacks transparency and appears structured to benefit a single company.

According to a CNBC report, Paramount demanded that the concerns be presented to the full board of directors and asked whether an independent special committee with no conflicts of interest had been appointed to oversee the sale.

Warner Bros. Discovery has struggled to find stability since Warner Bros. merged with Discovery Inc. in 2022.  In June, the company announced plans to split into two separate businesses next year, one focused on its studios and streaming services, and the other on its cable TV networks.

The massive deal, potentially worth around $60 billion, comes as the media world continues to change, with traditional TV audiences shrinking, and more people watching streaming platforms.

NFLX stock has gained over 15% year-to-date. 

Also See: Meta Reportedly Plans Deep Metaverse Budget Cuts

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