Netflix wins bid for Warner Bros. Discovery as A-list filmmakers warn of “dangerous” power change

Netflix has secured the top bid for Warner Bros. Discovery after weeks of a frantic auction that reshaped industry expectations and exposed deep rifts among Hollywood’s power players. Beating parallel offers from Paramount and Comcast, the streamer has offered about $28 a share to take over Warner Bros. studios and the HBO Max streaming operation — mostly in cash. Sources indicate that the offer includes a $5 billion breakup fee, indicating Netflix’s confidence in the feasibility of the deal.

This acquisition would be the most significant strategic leap in Netflix’s history. It will bring the studio’s vast infrastructure under company control, including DC Studios, Warner Bros. Television, HBO, New Line, and a library. harry potter Franchise for the pre-1986 MGM catalogue. Analysts have described the studio as the “crown jewel”, capable of expanding Netflix’s position beyond streaming and into the broader cultural and commercial arena.

Paramount – which bid for the entire WBD – has mounted the strongest challenge, warning that Netflix’s dominant market position would face unprecedented antitrust scrutiny. In internal correspondence, the company accused WBD’s leadership of favoring Netflix and raised concerns about management conflicts related to future roles and compensation. WBD rejected the claims as baseless.

Acquisition talks have spurred filmmakers into action. according to DiversityAn unnamed group of A-list producers and directors circulated a letter to Congress urging lawmakers to investigate the merger, warning that Netflix’s control over Warner Bros. would “effectively create a noose around the theatrical market.” Their main fear is that Netflix could sharply reduce exclusive theatrical windows for Warner Bros. films, or sideline theaters altogether in favor of a faster streaming turnaround. Some insiders claim the proposed period could be as short as two weeks, although sources close to the talks say the period will be longer.

The group cited Netflix co-CEO Ted Sarandos’s repeated comments moving the company away from a theatrical-first philosophy, arguing that the merger risks collapsing essential revenue streams and destabilizing long-standing exhibition practices.

Warner Bros. Discovery shares hit a 52-week high on news of the bid. If the deal closes, Netflix will inherit not only a massive library, but also a global theatrical distribution network that could redefine the industry’s boundaries and give rise to one of the fiercest regulatory battles of the decade.