Netflix leads bidding for Warner Bros Discovery studios and streaming unit

New Delhi: Netflix has entered exclusive negotiations to acquire Warner Bros Discovery’s film and television studios along with its streaming operations in a deal valued at about $28 per share, according to Reuters. The proposed transaction would bring Netflix and HBO Max under one bundle, potentially lowering streaming costs for consumers.

Netflix has emerged as the frontrunner after submitting an enhanced offer earlier this week. Bloomberg reported that the company has put forward a $5 billion breakup fee should regulators block the transaction, while CNBC said Netflix’s proposal includes an 85% cash component. 

The prospect of the takeover has prompted several prominent Hollywood figures to call on the US Congress to step in if the deal goes through, warning of potential economic and industry disruptions, according to Variety.

Warner Bros Discovery has sought a fresh round of offers from bidders by the end of Thursday, the Wall Street Journal reported. The process has drawn renewed interest from Paramount, Comcast and Netflix after the company requested improved proposals. 

Paramount has also asked for clarity on whether an independent committee of board members is overseeing the sale discussions. The company is pursuing a full acquisition of Warner Bros Discovery. In October, Warner Bros Discovery rejected an earlier bid of roughly $60 billion from Paramount before moving to a formal sales process.