Netflix Bids for Warner Bros. Discovery as Media Landscape Reshuffles

Netflix has submitted a predominantly cash offer for Warner Bros. Discovery as part of an intensifying second round of bids that could reshape Hollywood's power structure in the coming weeks. The move represents Netflix's most aggressive play yet to expand beyond its streaming dominance into traditional studio ownership.

Working through a bridge loan worth tens of billions of dollars, the streaming giant is targeting WBD's crown jewels: the Warner Bros. studio operations and HBO Max platform, while leaving the declining cable networks behind.

Wall Street analysts estimate the Warner Bros. studios, HBO, and the company's vast library of franchises could be valued at around $70 billion. That's a significant premium over WBD's current market cap of $59 billion, which includes assets Netflix doesn't want—like CNN, TNT, and the Discovery cable channels. Netflix isn't alone in this fight. Comcast and Paramount Skydance also submitted improved offers over the Thanksgiving weekend, with sources indicating these second-round bids are binding, meaning WBD's board could approve a deal rapidly if terms align with expectations.

The auction stems from Warner Bros. Discovery officially putting itself up for sale in October after receiving multiple unsolicited offers. Originally targeted by Paramount's David Ellison (who had made three consecutive rejected bids), the company set aside plans to split into separate streaming and cable entities to explore sale options.

For Netflix, acquiring Warner Bros. represents more than content expansion,it's about securing premium IP in an increasingly competitive landscape. The deal would bring iconic franchises like DC Universe properties, Harry Potter, and classics from "Casablanca" to "The Shining" under Netflix's umbrella. More critically, it would give Netflix ownership of HBO, widely considered the gold standard in premium television. This move addresses a key strategic gap: while Netflix excels at volume content production, HBO's prestige positioning and cultural cache remain unmatched. The cash-heavy approach signals Netflix's confidence in its financial position and determination to avoid diluting shareholder value through stock deals. It also reflects the reality that in today's media environment, scale and content ownership have become essential for long-term survival.

The deal won't proceed without pushback. Top Hollywood players have already voiced concerns about Warner Bros. falling under Netflix's control, primarily due to the streaming giant's minimal commitment to theatrical releases. Traditional industry stakeholders worry about further erosion of the cinema experience that has defined Hollywood for decades. Antitrust scrutiny looms large as well. A Netflix-Warner Bros. combination would create unprecedented consolidation in streaming and content production, likely drawing intense regulatory review both domestically and internationally.