Netflix, the global streaming giant, has submitted the highest cash offer to acquire TV and film group Warner Bros. Discovery. This binding bid was reportedly made over the Thanksgiving weekend in the U.S., according to a report by Bloomberg.
Netflix's primary interest lies in acquiring the Warner Bros. film and TV studios, along with the HBO Max streaming service. The company joined Comcast and Paramount Skydance in the second round of a binding auction process, which is expected to conclude in the coming days or weeks.
This offer is a significant part of a binding auction for the storied, yet debt-laden, Hollywood studio. The potential sale could reshape the U.S. media landscape, as the streaming giant aims to secure premium content assets, enhance its global content production capabilities, and address the target company’s considerable debt.
"Warner Bros. is said to want $30 a share, and the company’s chair emeritus, John Malone, has said that number is ‘possible.’ The stock closed at $23.87 on Monday in New York, giving the company an equity market value of $59 billion. However, Netflix is working on a bridge loan that totals tens of billions of dollars," the report stated.
Bankers for the three main bidders—Paramount Skydance Corp., Comcast Corp., and Netflix—were actively working over the long Thanksgiving weekend to finalize improved offers for all or part of Warner Bros.
Paramount’s offer receives substantial backing from the family of Oracle co-founder Larry Ellison. It is also supported by debt financing from Apollo Global Management Inc. and contributions from Middle East funds.
As the offers are binding, the Warner Bros. Discovery board has the ability to quickly approve a deal if the proposed terms align with its objectives. However, the company has not yet declared the latest offers as final and would remain open to considering another bid if more attractive terms were presented.
"Comcast and Netflix are interested only in the Warner Bros. studios and the HBO Max streaming service. Should one of their bids be accepted, Warner Bros. would continue with plans to spin off its cable channels as Discovery Global. The spinoff could occur by the middle of next year," Bloomberg added.
Backstory of the Potential Sale
The parent company of HBO, CNN, and the Warner Bros. film studio formally initiated its sale process in October. This decision followed the reception of several unexpected offers, leading the company to abandon its initial plan of splitting into two separate entities.
Warner Bros. Discovery CEO David Zaslav officially launched the sale process after the company had already been the target of multiple offers from Paramount.
Paramount itself was recently acquired by the billionaire family of Oracle founder Larry Ellison. His son, David Ellison, who is a movie producer and serves as Paramount CEO, had submitted three offers for the entertainment group prior to the formal sale process commencing.
Netflix’s Financial Strength
In the third quarter of 2025, Netflix demonstrated a strong financial position, supported by a considerable cash reserve and robust free cash flow generation.
The company reported a substantial increase in its cash and short-term investments, which now amount to $18.7 billion. This figure indicates ample liquidity available for future strategic initiatives. Netflix generated $1.4 billion in free cash flow during the quarter, a result of efficient operational management and strong revenue collection from its expanding subscriber base.
This financial performance not only sustains its extensive investment in original content but also provides the flexibility required to pursue significant opportunities, such as the proposed acquisition of Warner Bros. Discovery, without immediate reliance on excessive new debt.