After a high-stakes bidding war that captivated Hollywood, Netflix Inc. (NASDAQ:NFLX) has entered into exclusive negotiations to finalize a historic acquisition for Warner Bros. Discovery Inc.'s (NASDAQ:WBD) most prized assets.
Winning Bid, Key Assets
Following a tumultuous final round of offers on Thursday, the streaming giant bested rival suitors, including Paramount Skydance Corp. (NASDAQ:PSKY), to secure the rights to negotiate.
While several sources agree on Netflix’s victory, reports on the final price differ slightly.
A report from Deadline confirmed that the winning bid was $28 per share, while The Wrap reported on Friday morning that the streamer had hit a “magic $30-a-share target.”
Both publications confirm the deal is focused on acquiring the legendary Warner Bros. film and TV studios, alongside the HBO Max streaming service and its treasure trove of intellectual property, such as “Harry Potter” and the DC Universe.
A critical component of the proposal, according to The Wrap, is the inclusion of an unusually large $5 billion break-up fee, matching terms Paramount had added to its own bid.
Unlike Netflix, which is selectively acquiring the studio and streaming arms, Paramount's competing bid sought to purchase the entire company, including its extensive portfolio of linear TV channels such as TNT, TBS, and CNN.
Rivalry, Regulatory Hurdles
The auction’s conclusion was contentious. According to The Wrap, the third round of bids grew ugly, with Paramount issuing letters to WBD management claiming the process was “tainted” and had a “predetermined outcome” favoring Netflix.
Paramount previously argued its bid offered a clearer regulatory path.
The deal now faces a difficult road in Washington. The Wrap noted that significant questions remain regarding regulatory approval, citing likely stiff antitrust scrutiny and opposition from the Department of Justice regarding further media consolidation.
The prospect of the massive, complex merger also rattled investors, with Netflix shares dropping 0.71% to $103.22 apiece on Thursday as the reality of the potential deal set in.
Netflix Underperforms Nasdaq In 2025
While the shares of NFLX rose 15.81% year-to-date, the Nasdaq Composite and Nasdaq 100 indices gained 21.72% and 20.68%, respectively, in the same period.
The shares advanced 13.30% over the year.
It maintains a weaker price trend over the short, medium, and long terms, with a solid quality ranking. Additional performance details, as per Benzinga’s Edge Stock Rankings, are available here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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