Netflix Bid for Warner Bros. Discovery

Netflix submitted a predominantly cash bid for Warner Bros. Discovery in the second round of binding offers on Dec. 1, 2025. The offer arrived amid competing bids from Paramount and Comcast and fresh White House antitrust concerns that could complicate approval.

Second-Round Bids Accelerate Auction

Warner Bros. Discovery received second-round bids from Netflix, Paramount, and Comcast. Netflix’s proposal focused on the company’s studio operations and HBO Max streaming service and was described as mostly cash. Bankers worked through the weekend before Dec. 1 to refine offers for all or parts of Warner Bros. Discovery. The auction could conclude within days or weeks, pressuring bidders to finalize financing and secure board approval. Netflix’s cash-heavy approach has shortened the timeline and forced rivals to balance speed with strategic scope.

The urgency among bidders reflects ongoing streaming-subscription churn, which has increased the value of owned content. This competition has contributed to volatility in Warner Bros. Discovery’s share price as buyers vie for control of its programming and franchises.

Warner Bros. Discovery’s Financial Position

The company’s Q3 2025 earnings filing, dated Nov. 6, showed total revenues of $9.0 billion, down 6.0% year-over-year, and a net loss of $148 million. Adjusted EBITDA, a proxy for operating profit, rose 2.0% to $2.5 billion. Streaming subscribers increased by 2.3 million to 128 million, while streaming-segment adjusted EBITDA grew 24.0% year-over-year. Studios revenue rose 23.0%. Free cash flow totaled $701 million, up 11.0%, and the company held $4.3 billion in cash with a net leverage ratio of 3.3 times. Global Linear Networks revenue fell 23.0%, reflecting the absence of the 2024 Olympics and softer domestic linear pay-TV subscribers.

These results provide potential acquirers a clear view of Warner Bros. Discovery’s cash-flow trajectory and the standalone performance of its streaming and studios businesses. These metrics likely influence how bidders size offers and structure financing amid share-price fluctuations.

White House Raises Antitrust Concerns

Senior White House officials flagged antitrust concerns that Netflix’s acquisition of Warner Bros. Discovery’s studio operations and HBO Max could grant Netflix excessive market power. This regulatory issue could affect the timing and structure of any deal, potentially leading to conditions or an extended review that bidders must consider in their final offers and financing plans.