Netflix clinches winning bid for Warner Bros. Discovery as A-list filmmakers warn of “dangerous” power shift

Netflix has secured the top bid for Warner Bros. Discovery after a frantic, weeks-long auction that reshaped industry expectations and exposed deep fractures between Hollywood power players. The streamer has offered roughly $28 a share — largely in cash — to take over Warner Bros. Studios and the HBO Max streaming operation, outpacing parallel offers from Paramount and Comcast. Sources indicate a $5 billion breakup fee is included in the proposal, a sign of Netflix’s confidence in the deal’s viability.

The acquisition would be the most significant strategic leap in Netflix’s history. It would bring the studio’s vast infrastructure under the company’s control, including DC Studios, Warner Bros Television, HBO, New Line, and a library stretching from the Harry Potter franchise to the MGM pre-1986 catalog. Analysts describe the studio as a “crown jewel,” one capable of elevating Netflix’s standing beyond streaming and into broader cultural and commercial territory.

Paramount — which bid for all of WBD — has pushed back hardest, warning that Netflix’s dominant market position will face insurmountable antitrust scrutiny. In internal correspondence, the company accused WBD’s leadership of favoring Netflix and raised concerns about management conflicts tied to future roles and compensation. WBD rejected the claims as unfounded.

The acquisition talk has jolted filmmakers into action. According to Variety, an anonymous group of A-list producers and directors circulated a letter to Congress urging lawmakers to scrutinise the merger, warning that Netflix’s control over Warner Bros. would “effectively hold a noose around the theatrical marketplace.” Their central fear is that Netflix could sharply reduce the exclusive theatrical window for Warner Bros. films, or sideline theaters altogether in favor of rapid streaming turnarounds. Some insiders claim the proposed window could shrink to two weeks, though sources close to the negotiations insist it would be longer.

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

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