Netflix reportedly close to finalizing deal with Warner Bros.

Netflix is ​​close to closing a deal to acquire Warner Bros. Discovery’s film and streaming businesses, according to multiple reports.

The streaming giant surpassed rivals Comcast and Paramount Skydance to become the highest bidder for Warner Bros. with an offer of $28 (£21) per share, according to multiple media reports including Reuters and Reuters. new york times.

Paramount made a preliminary offer in October to buy the entire company, including its cable networks such as CNN, for $24 a share, but Warner Bros. rejected the offer before putting itself up for sale.

In a letter seen by CNBC, lawyers for Paramount questioned the “fairness and adequacy” of this week’s sale process.

Paramount submitted a new offer on Thursday at nearly $27 per share, CNN reports.

Warner Bros. owns franchises such as “Harry Potter” and “Game of Thrones,” as well as the streaming service HBO Max.

CNN has reached out to Netflix, Warner Bros. and Paramount for comment.

Emma Wall, chief investment strategist at Hargreaves Lansdown, said the takeover battle was “drama for those who create drama”.

She told the BBC’s Today program that the key was to note the differences between Paramount’s and Netflix’s bids, noting that Paramount’s bid included parts of the Warner Bros. business that “were a drag on profitability”.

“The Netflix bid was only for parts of the business, and those parts of the business were doing well,” she said.

Wall said Paramount took the unusual step of accusing Warner Bros. of favoring Netflix in the process. Paramount also said the streaming platform’s offer was not a good deal for Warner Bros. shareholders because it would require breaking up the business.

“If you have an altercation, your offer will be tainted,” she said.

According to CNBClawyers for Paramount accused Warner Bros. of engaging in “a short-sighted process with a predetermined outcome that favored a single bidder.”

Wall said that no matter which company acquires Warner Bros., U.S. competition regulators are likely to get involved.

“Whether Netflix succeeds here or Paramount makes a comeback, this is going to be a global broadcast entertainment giant that regulators want to focus on,” she said.