According to reports from Deadline and The Wrap, Netflix has won the bidding war for Warner Bros. Discovery (WBD) and will now enter exclusive negotiations to finalize the deal. Initially, Netflix was not considered a likely contender for WBD, which had become an acquisition target for Paramount in September. Netflix had previously indicated disinterest in mergers and acquisitions. However, the situation changed in late October.
WBD attracted interest from three suitors: Paramount, Netflix, and Comcast. Paramount aimed to acquire the entire company, while Netflix and Comcast were only interested in the studios and streaming division, not the networks. WBD announced plans to split the company in June.
Paramount made several offers that were rejected before WBD opened up to bids in November. Tensions escalated in the final 24 hours, as Paramount sent a letter to WBD criticizing Netflix and Comcast as potential buyers. Paramount described the bidding process as “unfair” and biased toward Netflix, arguing that their bid would face an easier regulatory approval process. Despite this, WBD remained firm, and sources reported that Netflix offered about $28 per share for WBD, primarily in cash.
There are concerns in the wrestling world regarding the implications for AEW, given that Netflix is a partner with WWE, while WBD is AEW's home. Reports indicate that Netflix plans to acquire HBO Max and Warner Bros. Studios, but will not take over the networks. AEW is currently under a multi-year deal with WBD, which allows it to simulcast on both TNT/TBS and HBO Max, with AEW pay-per-views offered at a discount through HBO Max. Meanwhile, Paramount has its own deal with TKO to air UFC events on Paramount+ starting next year.
It’s important to note that exclusive talks do not guarantee a finalized deal, and the regulatory process may prove complicated. Paramount could decide to take its offer directly to WBD shareholders to complicate matters further. It's unclear whether this would occur or if Paramount could match WBD's offer if they chose to do so. CNN reported that Paramount’s previous offer was $27 per share, but this was for the entire company. If the deal closes, it could significantly reshape the entertainment industry in various ways, both positive and negative.
