Netflix joins race to acquire Warner Bros Discovery

Comcast and Paramount’s Skydance are also in race to buy media conglomerate

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Netflix is said to have made a cash bid for Warner Bros. Discovery (including HBO Max), while cable operator Comcast and Paramount–Skydance are also still in the running. As early as October, Warner announced it was looking for a buyer.

For Netflix, the acquisition would be particularly useful as a way to gain control of iconic titles, but it is precisely this that makes a merger difficult. According to insiders, the US Department of Justice sees numerous objections.

The concern is that a merger between Netflix and HBO Max – both leading streaming services – would create an overly dominant player in the streaming market. Critics warn that this could seriously undermine competition, because the combined service would become so large that the range of content and the choice available to consumers risk being restricted.

Warner’s board previously rejected a bid from Paramount of almost $24 per share ($60 billion in total).

If the takeover goes ahead, it would mean that Warner Bros.’ studio and streaming division (including HBO Max, among others) and its cable/network operations would be split – something the company had already announced as part of an earlier plan.

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