Netflix $NFLX ( ▲ 0.05% ) is slipping after a Reuters report suggested that buying Warner Bros. Discovery $WBD ( ▲ 0.55% ) may not deliver the subscriber growth investors were hoping for. Netflix is said to be targeting WBD’s studio business and HBO Max, but most Netflix users already subscribe to HBO Max. A bundle would lower costs for viewers without meaningfully expanding Netflix’s market share.
Meanwhile, the rest of the bidders are staying aggressive. Paramount Skydance $PSKY ( ▼ 2.3% ) has reportedly sweetened its offer with backing from Middle Eastern sovereign wealth funds. Comcast $CMCSA ( ▼ 0.58% ) is pushing a pitch that merges NBCUniversal’s film and TV units with HBO and Warner, combining Peacock with HBO Max.
Analysts say the bidding war could drive WBD’s valuation toward seventy billion dollars, sharply higher than where it stood before talks began.