Streaming platform Netflix has reportedly made a large cash offer to buy Warner Bros Discovery, one of Hollywood’s biggest and oldest entertainment companies. According to a Bloomberg report, Netflix has joined other major players, Paramount-Skydance and Comcast (owner of NBCUniversal), in the second round of bidding. These negotiations continued even during the Thanksgiving holidays in the United States.
Warner Bros Discovery, the parent company of HBO, CNN, and Warner Bros studios, officially put itself up for sale in October. This decision came after the company received several unexpected offers. Before this sale process began, Warner Bros Discovery had planned to split into two separate companies, one for streaming and film studios, and the other for traditional cable channels. However, those plans were dropped once the bids started coming in!
Paramount had shown interest first. Now owned by the tech-billionaire Ellison family (founders of Oracle), Paramount tried three times to acquire Warner Bros Discovery. David Ellison, the new CEO of Paramount and a Hollywood film producer, was leading those offers. But after repeated attempts, Warner Bros Discovery chose to open the sale to multiple bidders through a formal process.
Netflix, which has over 280 million subscribers worldwide, is reportedly arranging a huge bridge loan worth tens of billions of dollars so it can finance this potential acquisition. If the deal goes through, Netflix would gain major assets such as the HBO content library and Warner Bros studios. This would greatly expand Netflix’s production power and increase its influence in global entertainment.
However, experts believe the deal would face serious examination from antitrust authorities in the U.S. and other countries. Regulators may be concerned that Netflix becoming even bigger could reduce competition in the media industry.
Some Hollywood creators also worry about this possibility. For example, “Titanic” director James Cameron said on a podcast that Netflix buying Warner Bros would be “a disaster.” Many filmmakers fear Netflix might push more movies toward online releases instead of theatres. Both Netflix and Warner Bros Discovery declined to give any official comments so far. The entertainment world is now watching closely, as this deal could dramatically reshape the future of Hollywood.
