Netflix (NFLX) emerged as the highest bidder for Warner Bros. Discovery’s (WBD), according to a Reuters report that cites sources familiar with the matter.
Another Bloomberg report also suggested that Netflix (NFLX) had entered exclusive talks to buy WBD’s (WBD) studio and streaming service and is offering a $5 billion breakup fee if regulators don’t approve the deal. The report also indicated that the deal could be announced in five days.
Netflix and Warner Bros. Discovery did not immediately respond to Seeking Alpha’s request for comment.
Previous day, a CNBC report suggested the same, with the Netflix offer consisting of 85% cash.
The acquisition would consolidate Netflix’s (NFLX) dominance in streaming by absorbing Warner Bros. (WBD) studios and HBO Max, potentially creating bundled offerings to cut consumer costs. WBD (WBD) initiated the sale process in October amid financial pressures.