The potential sale, which could take months to finalize, marks the latest chapter in a high-profile bidding war over Warner Bros’ prized film and television assets, including blockbuster franchises such as Harry Potter, Game of Thrones, Friends, and the DC Comics universe, as well as classic films like Casablanca and Citizen Kane.
Bloomberg News first reported the development earlier Tuesday. Netflix declined to comment on Bloomberg’s report, while Warner Bros did not immediately respond to requests for comment from Reuters.
On Tuesday, Netflix shares rose 1.02%, Warner Bros closed 1.62% higher, and Paramount shares remained largely unchanged.
Netflix’s initial $82.7 billion deal combined cash and stock for Warner Bros’ film and streaming assets. Paramount, meanwhile, offered $108.4 billion in cash for the entire company, including its cable TV business. Despite Paramount’s revised offer—which included $40 billion in equity support from Oracle co-founder Larry Ellison and Paramount CEO David Ellison’s family—Warner Bros has reportedly continued to favor Netflix’s proposal.
Warner Bros’ board has expressed concerns over Paramount’s bid, citing heavy reliance on debt financing and describing the offer as “inadequate” relative to the risks involved.
Paramount has challenged Warner Bros publicly, filing a lawsuit seeking more information about its deal with Netflix and announcing plans to nominate directors to Warner Bros’ board. The company argues that its all-cash bid of $30 per share for Warner Bros surpasses Netflix’s previous cash-and-stock offer of $27.75 per share for studios and streaming assets, while potentially making regulatory approval easier.
Both Netflix and Warner Bros have built safeguards into their agreement. Netflix has agreed to pay a $5.8 billion termination fee if regulatory hurdles prevent the deal from closing, while Warner Bros would owe $2.8 billion if it walks away from the Netflix agreement.
Lawmakers across the political spectrum have voiced concern over further media consolidation, warning that it could reduce competition, limit consumer choice, and drive up prices in an already evolving entertainment landscape increasingly dominated by streaming platforms and volatile theatrical revenues.
The outcome of this battle will likely shape the future of Hollywood’s studio system and streaming wars, making it one of the industry’s most closely watched takeovers in recent history.