Netflix has submitted a bold new mostly-cash offer for Warner Bros. Discovery that would push the streaming pioneer deep into multibillion-dollar debt in what could become the largest media acquisition in history, according to people familiar with the private auction process according to a report from Reuters.
The binding second-round bid, delivered over the weekend, values Warner Bros. Discovery significantly above the company’s current market capitalization of roughly $20 billion and far exceeds the rejected $60 billion all-cash proposal previously made by the Paramount-Skydance consortium. Bankers working for Netflix, Comcast, and the Paramount-Skydance group spent the holiday weekend finalizing revised offers after Warner Bros. Discovery demanded improved terms by December 1. This comes as Warner Bros. Discovery hopes to announce a buyer as soon as this week.
If accepted, the transaction would hand Netflix control of HBO, Max, CNN, the Warner Bros. film and television studio, DC Comics, the Harry Potter franchise, and one of Hollywood’s largest content libraries in a single stroke. The deal would also instantly make Netflix the undisputed leader in premium streaming while saddling it with debt obligations that could reach $40–50 billion when including Warner Bros. Discovery’s existing liabilities and the premium required to close the auction.
Warner Bros. Discovery began formally exploring a sale in October and announced plans in June to split into two entities – one focused on studios and streaming, the other on declining linear cable networks – to maximize shareholder value. The board has signaled it prefers a clean sale of the entire company rather than a piecemeal breakup.
Comcast, which owns Universal Pictures, Peacock, and NBC, remains actively engaged in the process and could counter with a mixture of cash and stock. The Paramount-Skydance group, fresh from completing its own $8.4 billion merger earlier this year, continues to pursue select Warner assets even after its initial $60 billion bid was turned away.
Industry executives expect the Warner Bros. Discovery board to select a winner within days or weeks, given the binding nature of the current offers. A successful Netflix bid would mark the most dramatic consolidation yet in an entertainment landscape already reshaped by streaming wars, cord-cutting, and collapsing linear television economics.
Neither Netflix nor Warner Bros. Discovery would comment on the auction. Representatives for Comcast and the Paramount-Skydance partnership also declined to comment.
The outcome will determine the future balance of power in Hollywood and could trigger immediate regulatory scrutiny over competition in both streaming and content production. For Netflix, willing to leverage its balance sheet on an unprecedented scale, the prize is clear: instant ownership of the industry’s most prestigious brands and a library that rivals Disney’s in cultural influence.
Please add Cord Cutters News as a source for your Google News feed HERE. Please follow us on Facebook and X for more news, tips, and reviews. Need cord cutting tech support? Join our Cord Cutting Tech Support Facebook Group for help.