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(Sharecast News) - Warner Bros Discovery has reportedly entered exclusive negotiations to sell its film and TV studios and HBO Max streaming service to Netflix, according to reports on Friday.
Netflix is offering a $5bn breakup fee if regulators don't approve the deal. The two companies could announce a deal as soon as in the coming days, Bloomberg reported citing unnamed sources.
CNBC reported that Netflix had offered a deal made up of 85% in cash, while Paramount Skydance had tabled an all-cash offer. Comcast Corp is also in the running.
Prior to the closing of the sale, Warner Bros. - valued at more than $60bn overall - will complete the planned spinoff of cable channels including CNN, TBS and TNT.
Last week, the producer of the Harry Potter franchise and Succession TV series asked bidders to submit improved offers by December 1 after receiving preliminary buyout bids from Paramount Skydance, Comcast and Netflix.
Warner rejected Paramount's mostly cash offer of nearly $24 a share for the company, valuing it at $60bn, and publicly announced it would evaluate strategic options for the studio.
The parent of HBO, CNN and its namesake film studio, officially put itself up for sale in October after receiving multiple unsolicited offers for all or part of the company. Paramount started the process with three offers for all of the company, including its cable TV networks.
Comcast and Netflix are interested only in the Warner studios and the HBO Max streaming service. Should one of their bids be accepted, Warner would continue with plans to spin off its cable channels as Discovery Global under plans put forward in June to separate its studio and streaming business from its traditional cable television networks.
Reporting by Frank Prenesti for Sharecast.com
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