WBD Stock Pops After Netflix Enters Final Bidding With Major Cash Proposal

Warner Bros. Discovery, Inc. has entered a critical phase in its strategic auction process, with Netflix submitting a predominantly cash offer as part of second-round bidding that could reshape the media landscape. The development, which emerged on December 1, 2025, has sparked significant investor interest, sending WBD shares higher in pre-market trading.

Alongside Netflix, banking representatives for Paramount Skydance and Comcast worked through the weekend to refine their proposals for all or part of the entertainment giant, signaling intense competition for the company behind HBO, CNN, and iconic franchises like Harry Potter and DC Comics.

Netflix Leads Second-Round Bidding with Cash-Heavy Offer

Warner Bros. Discovery received binding second-round bids after requesting improved offers by December 1, following an initial round that included a rejected Paramount proposal of nearly $24 per share valuing the company at $60 billion. The bids are characterized as binding, providing the board with the authority to move quickly toward approval if terms align with strategic objectives, though they have not been labeled as final offers.

Netflix’s predominantly cash structure distinguishes its proposal in a process that could further consolidate the media industry following the recent $8.4 billion Skydance-Paramount merger.

The auction comes as Warner Bros. Discovery navigates significant structural changes, having announced plans in June to split into studio-centric and cable-focused units by next year. This separation aims to isolate its growing streaming business from its declining cable network operations, a move that reflects broader industry trends as traditional television continues to lose ground to digital platforms.

The company’s board publicly announced it would evaluate strategic options for the studio after rejecting Paramount’s initial approach, setting the stage for this competitive bidding process.

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WBD’s 126% YTD Rally Strengthens as New Bids Drive Up Expectations

Warner Bros. Discovery shares closed at $23.87 on December 1, down $0.13 or 0.54% during regular trading hours. However, pre-market trading on December 2 at 6:15:37 AM EST showed significant momentum, with the stock climbing to $24.34, up $0.47 or 1.97%, reflecting investor optimism about the bidding process.

The stock has demonstrated remarkable year-to-date performance, gaining approximately 125.83% compared to the S&P 500’s 15.83% return over the same period, though the five-year picture remains challenging with a decline of 13.76%.

The company currently carries a market capitalization of $59.15 billion and an enterprise value of $88.38 billion, with analyst price targets ranging from $10 to $30 and an average estimate of $22.47. Trading metrics show a trailing P/E ratio of 125.63 and a beta of 1.62, indicating higher volatility relative to the broader market.

With 35,000 full-time employees and operations spanning studios, networks, and direct-to-consumer services globally, Warner Bros. Discovery’s strategic future hangs in the balance as bidders position themselves for what could be one of the most significant media transactions in recent years.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.