Warner Bros. Discovery (WBD) shares rose on Friday after reports indicated that a formal bidding war for the entertainment giant could begin as early as next week.
The stock climbed 3.4% to $22.91 on Friday, bucking broader market pressure as S&P 500 futures slipped 0.6% amid a continued rotation out of Big Tech.
The Wall Street Journal reported late Thursday that Paramount–Skydance, Comcast, and Netflix are preparing first-round, nonbinding bids for the company ahead of a Nov. 20 deadline.
Warner Bros. Discovery hopes to complete the auction by the end of the year, according to the report.
Multiple suitors target the studio and streaming assets
Paramount is reportedly interested in acquiring the entire Warner Bros. Discovery entity, which carries a market value of roughly $55 billion.
Comcast and Netflix, meanwhile, are preparing bids focused on the studio and streaming divisions—a portfolio that includes the Warner Bros. film and TV studios, HBO Max, and iconic franchises such as Harry Potter and Batman.
Both companies are said to have no interest in WBD’s cable networks, which include CNN, TNT, and Discovery Channel.
The auction process comes as Warner Bros. Discovery advances plans to split itself into two companies: one housing its studios and streaming operations, and another for its traditional cable networks.
This would make it easier for potential buyers to target specific assets without taking on the entire legacy cable portfolio.
For Netflix, whose market capitalization is nearing $490 billion, WBD’s deep library of films and television programming presents an opportunity to further strengthen its global streaming dominance.
Comcast and Paramount view the deal as a chance to gain the scale they have struggled to achieve in the streaming market, where they lag behind Netflix and Amazon.
Paramount pushes forward with cash offer backed by Ellison family
Paramount—newly reorganized following its merger with Skydance in August—has already submitted unsolicited bids and remains committed to pursuing the full acquisition.
Its latest offer valued Warner Bros. Discovery at $23.50 per share, nearly 90% above WBD’s stock price before news of Paramount’s interest surfaced.
The bid is backed by significant financial firepower: the Ellison family, including Oracle co-founder Larry Ellison, and private equity firm RedBird Capital Partners.
Paramount has signaled it would keep the Warner Bros. movie studio intact, continuing to produce more than a dozen theatrical releases per year, while also operating its own studio as a separate creative arm.
A combined company would aim to release about 30 films annually.
Paramount also believes it may face fewer regulatory challenges than Comcast or Netflix, according to the report.
Regulatory and political obstacles loom
Any major deal in the entertainment sector is likely to draw scrutiny from Washington, and analysts note that the political landscape could complicate certain bids.
A merger involving Netflix could face pushback from the Justice Department, particularly if regulators define the streaming market narrowly.
Comcast, a frequent target of criticism from President Donald Trump, may also encounter challenges.
However, Comcast executives have downplayed concerns, arguing that more deals may be viable than commonly assumed, according to the report.
The company recently moved to spin off its cable network assets into a new entity called Versant and donated to Trump’s renovation of the White House East Wing, WSJ reported.
With deep-pocketed bidders circling and Warner Bros. Discovery restructuring its business, the coming weeks may reshape the entertainment industry as long-standing rivals race to secure strategic scale in a rapidly evolving streaming landscape.
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