Warner Bros. faces dramatic bidding war as Netflix pulls ahead

Warner Bros. Discovery has become the centre of Hollywood’s biggest studio fight in years, with Netflix now leading the race to buy its film and streaming assets, according to people familiar with the talks.

Sources told CNN that Netflix submitted the highest offer so far on Thursday, valuing the Warner Bros. studio, HBO Max and related units at about 28 dollars a share. Paramount raised its competing bid to nearly 27 dollars, though its offer covers the entire company, including CNN and WBD’s cable networks. Netflix and Comcast are focused only on the studio and streaming arm.

The contest has shaken Hollywood as the fate of major brands such as DC Comics and HBO hangs in the balance. Although the companies have declined to comment, leaks suggest Netflix has moved ahead. Paramount has already accused WBD of running an auction that unfairly favours Netflix.

Bloomberg later reported that WBD and Netflix have begun exclusive talks, indicating the bidding may be entering its final stretch.

A rare Hollywood power struggle

The auction began earlier in the autumn when Paramount CEO David Ellison submitted multiple offers to the WBD board. Analysts predicted a bidding war immediately, noting that major studios rarely go up for sale.

Zaslav officially put WBD on the market in October while also pursuing a plan to split the company into two publicly traded halves. WBD’s share price fell sharply after the 2022 merger, dropping from around 25 dollars to a low of 7.52 dollars before takeover speculation pushed it back up.

Despite being far smaller than WBD, Paramount has been pushing aggressively as Ellison works to reposition the company. Zaslav’s allies maintain that splitting WBD remains the best long-term strategy.

Politics raises the stakes

A political subplot has added fuel to the battle. Ellison and Paramount are widely seen as having a favourable relationship with President Trump, which some believe could help them with regulators. Trump has publicly praised Ellison and his father Larry, while Republican lawmakers have backed Ellison’s leadership of Paramount and CBS.

Ellison recently attended a White House dinner with Saudi Crown Prince Mohammed bin Salman, underscoring his White House ties. Paramount executives have argued internally that their bid may face fewer hurdles with Trump-era regulators, though Trump does not have a direct veto. Netflix may also be willing to fight in court if needed.

A global test for Netflix

Any sale of WBD would face regulatory scrutiny in the UK, EU and Latin America. Political perceptions in Washington could complicate overseas approval for any bidder.

Reports naming Netflix as the frontrunner have already stirred concern. Senator Mike Lee warned on X that the potential combination raises “serious competition questions”.

A Bank of America analysis said that if Netflix acquires Warner Bros., “the streaming wars are effectively over”, positioning the platform as Hollywood’s dominant global force.