Sources revealed that Netflix, the streaming giant, is currently negotiating to acquire Warner Bros Discovery's film and television studios as well as all its streaming businesses in a deal valued at $28 per share. This acquisition could transform the global media and entertainment industry landscape.
Reuters reported, citing sources, that Netflix has become the highest bidder to acquire Warner Bros Discovery (WBD) assets, including its film and television studios and streaming business unit HBO Max.
The acquisition offer is expected to reduce streaming service costs for consumers by combining Netflix and HBO Max platforms into a single package.
Regarding the offer details and terms, sources stated the bid values shares at $28 each. CNBC reported that Netflix's offer includes up to 85% cash for the assets it wants to purchase.
Bloomberg News reported that Netflix offered a breakup fee of up to $5 billion if regulators block the deal, and the company is expected to announce the agreement within days.
The Wall Street Journal reported that Warner Bros Discovery wants new bids by December 4 after Paramount Skydance accused the sale process of favoring Netflix over other companies.
Sources said Warner Bros Discovery recently received revised offers from Paramount, Comcast, and Netflix after requesting increased bids following November's initial offers.
Paramount’s legal team sent a letter to WBD CEO David Zaslav expressing concerns about the "fairness and adequacy" of the bidding process, citing reports that WBD's management favors Netflix's proposal.
Paramount also demanded that WBD appoint a special independent committee, separate from conflicted directors, to evaluate offers and oversee the sale process, emphasizing, "We strongly urge you to empower such a committee composed of directors unlikely to have bias or owe obligations to others with interests differing from shareholders."
Previously, Paramount attempted to buy all of WBD; in October, WBD's board rejected an earlier offer worth about $60 billion before officially starting the sale process.
Meanwhile, news of the potential deal has prompted leading filmmakers' associations to call on the U.S. Congress to intervene if Netflix's proposal succeeds. Variety magazine reported that creators fear this major merger could eventually lead to an economic and institutional crisis in Hollywood.
. SourceReuters