Netflix leads bid for Warner Bros Discovery; Paramount alleges unfair process: Report

Netflix has reportedly emerged as the frontrunner in the high-stakes bid for Warner Bros. Discovery (WBD), according to Deadline. Netflix is now in talks with WBD to acquire its film and television studios at a reported deal value of $28 per share, as noted by Reuters.

The proposed acquisition of WBD’s studio and streaming units could lower streaming costs for consumers by bundling Netflix with HBO Max, the reports said.

However, rival bidder Paramount has challenged the process, alleging that WBD is conducting an “unfair sale” that favours Netflix over other contenders. While Netflix has expressed interest in acquiring WBD’s studio and HBO Max assets, Paramount has bid for the company in its entirety. Comcast is also in the race, having submitted bids for the studio and streaming businesses.

A Bloomberg report added that Netflix has offered a $5 billion breakup fee should regulators block the transaction.

Paramount Skydance CEO David Ellison argued that his company was the only bidder with a clear regulatory path to closing the deal, claiming that Netflix and Comcast face “serious issues” that regulators will find hard to overlook.

Paramount further alleged that the sale process is “tainted” by management conflicts, including potential personal incentives tied to post-transaction roles and compensation linked to recent amendments in leadership employment agreements.