Warner Bros. Discovery has entered exclusive negotiations with Netflix, according to Bloomberg. The shift follows an offer from Netflix valuing the company’s studio and streaming operations at approximately $30 per share.
Netflix has now entered exclusive negotiations with Warner Bros. Discovery over a potential purchase of the company’s film and television studio assets, along with its streaming platform.
The development marks a dramatic reversal from earlier this fall, when Netflix co-CEO Greg Peters publicly questioned the value of media mergers, saying they rarely delivered strong results. Just weeks later, Netflix has now emerged as the front-runner after outbidding competitors Paramount and Comcast via multiple rounds of offers in an intense acquisition war.
Earlier this evening, hundreds of leading industry figures sent an alarming open letter to Congress, warning of a potential “economic and institutional crisis” in Hollywood if Netflix succeeded in acquiring Warner Bros. Discovery.
The letter was sent via email to members of Congress, from an anonymous collective identifying themselves only as “concerned feature film producers.” A large chunk of the signees included A-list filmmakers. The group said it chose to keep the letter unsigned not “out of cowardice,” but out of fear of retaliation, citing Netflix’s immense power as both a buyer and distributor.
According to Variety, Netflix’s current proposal to Warner Bros. would give their films a brief two-week theatrical run before moving them to streaming—but few believe the company will follow through. Studios and exhibitors have long feared that a Netflix takeover of Warner Bros. could eliminate another major source of theatrical releases. Historically, the streamer has allowed only short theatrical windows, primarily to qualify films for awards and to appease filmmakers. Why would they behave differently this time?
If Netflix ultimately gains control of Warner Bros., the outcome for the industry may indeed be bleak.
In the meantime, and no timed coincidence at all, Trump’s DOJ antitrust chief is now preparing to launch a “sweeping multi-year investigation” into Netflix and its lobbying efforts regarding the WB sale potentially violating antitrust law.