Netflix (NFLX) is set to join a bidding war for Warner Bros. Discovery Inc., competing with Paramount and Comcast in the effort. Warner Bros, the parent company of HBO, CNN, and the Warner Bros. movie and TV studios, announced plans to sell the company outright, with Thursday marking the deadline for bids to be submitted.
On Wednesday, Bloomberg reported that Netflix told Warner Bros. management it is willing to give up its long-standing opposition to releasing films in theaters if it acquired the company. While Netflix is most interested in Warner Bros’ film and TV library, which includes everything from to Bugs Bunny, Paramount is willing to buy the whole company, including cable channels such as CNN, TNT, and the Cartoon Network.
Warner Bros Acquisition to Send Netflix (NFLX) Stock Higher?
Despite a 15% skid in the past month, Netflix (NFLX) remains one of the best performers amongst entertainment stocks on the US stock market. The streaming giant announced another 10-for-1 stock split earlier this month, making the valuable stock more attainable for smaller investors while awarding whale investors with more individual shares. NFLX stock rallied 4% last week after the stock split.
10-for-1 stock splitWarner Bros stock has tripled in the last six months, as anticipation for the company’s next owner grows. Shares of Warner Bros. were up less than 1% Friday morning at $23, while Netflix (NFLX) moved less than 1% in either direction. Per sources, Warner bros is expected to make a decision on the sale by December 25, with no front-runner necessarily leading the race. However, a successful acquisition of the company by Netflix could fuel a further NFLX rally to end its solid 2025 (+18% YTD).
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**Also Read: Intel (INTC) Gets Downgrade From Citi: Stock Slides 3%**Alternatively, Warner Bros. may not reach a deal with any of the suitors and may continue its current plan to separate its flagging cable networks from the rest of the businesses next year. That would allow Chief Executive Officer David Zaslav to continue to run the studio and streaming units, at least until another bidder materializes
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