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Warner Bros. Discovery (WBD) shares rose in early US trading after Netflix entered the latest bidding round for the media group with a mostly cash proposal. The move raised market expectations that the auction for all or part of Warner Bros. Discovery could reach a decisive stage in the coming weeks.
Pre-market quotes on 2 December showed WBD stock gaining nearly 2% after the new bidding details emerged. Investors responded to signs that multiple suitors, including Netflix, Comcast and Paramount Skydance, continue to compete aggressively for the owner of HBO, CNN and the Warner Bros. film studio.
People familiar with the process say Warner Bros. Discovery received binding second-round bids by the 1 December deadline. Netflix submitted a mostly cash offer that stands out in a field of proposals that also includes Comcast and Paramount Skydance. The board can move quickly if a proposal meets its strategic and financial conditions, though advisers do not describe the bids as final.
The process follows an initial round in which Paramount Skydance reportedly offered nearly $24 per share, valuing WBD at about $60 billion. The board rejected that approach and announced a formal review of strategic options for the studio business. Since then, bankers for Netflix, Comcast and Paramount Skydance have worked on enhanced terms, including financing structures backed by loans and equity partners.
Warner Bros. Discovery has already outlined major internal changes. In June, the group announced plans to split operations into a studio-centric unit and a cable-focused unit by next year. The company aims to separate its growing streaming activities from its declining traditional TV networks, which face pressure from cord-cutting and shifting advertising budgets.
Any sale or partial sale of the studio and streaming assets would follow the $8.4 billion Skydance-Paramount merger, which closed earlier in 2025. Another large transaction would push consolidation in the global media and streaming market even further, as major platforms seek scale, libraries and recurring subscription revenue. Netflix and Warner Bros. Discovery declined to comment on the ongoing auction.
WBD shares closed at $23.87 on 1 December, down modestly in regular trading, before the stock moved higher in pre-market activity. The stock traded at approximately $24.34 in early US hours. This figure was close to the level of the earlier rejected bid, indicating that investors expect a higher price or a different deal structure.
So far in 2025, WBD stock has gained more than 120%, far outpacing the broader S&P 500 index. However, the company still shows a negative five-year total return, which reflects years of heavy debt, integration challenges and volatility around its streaming strategy. Analysts currently assign price targets that range widely, from $10 to $30 per share.
Warner Bros. Discovery now carries a market capitalization near $60 billion and an enterprise value closer to the high-$80 billion range when including debt. The stock trades on a high trailing earnings multiple and shows a beta above one, signaling more volatility than the wider market. These factors, combined with the value of its film and TV franchises, help explain the intense interest from Netflix, Comcast and Paramount Skydance as they compete to shape the next phase of the streaming and media sector.
Also Read: Netflix Inc. (NFLX) Share Price: Forecast, Historical Performance and Future Targets
