In a major move that could reshape the media landscape, Comcast Corp. has submitted a renewed bid to merge its NBCUniversal division with Warner Bros. Discovery Inc., according to sources familiar with the negotiations. The offer, made on Monday, is part of a hotly contested second round of bidding for the entertainment giant.
The Structure of the Proposed Deal
Comcast's proposal seeks to combine the assets of NBCUniversal—including the NBC TV network, film and television studios, and theme parks—with Warner Bros.'s vast library and streaming service, HBO Max. The goal is to create a formidable entertainment behemoth better equipped to compete in the streaming era. A key strategic aim is to bolster NBC's Peacock streaming platform by integrating the content and subscriber base of HBO Max.
Under the terms, Warner Bros. shareholders would receive a mix of cash and stock in the newly formed entity. Comcast, which is based in Philadelphia, would retain control of the combined company. In a significant gesture, Comcast has reportedly offered Warner Bros. chief executive David Zaslav a management role within the new organization.
Regulatory Hurdles and Competing Bids
The potential merger faces significant regulatory challenges, as combining two of Hollywood's largest content producers would likely attract intense scrutiny from antitrust authorities. Comcast is not alone in its pursuit; it is one of three suitors that submitted revised offers this week.
Netflix Inc. has also placed a bid, which is reported to be mostly in cash and would involve raising tens of billions through a bridge loan. Similar to Comcast, Netflix is primarily interested in Warner Bros.'s studios and streaming business, not its cable networks. Separately, Paramount has made an all-cash offer with backing from Apollo Global Management and Middle Eastern funds, uniquely targeting Warner Bros.'s cable channels like CNN and TNT.
Planned Spinoffs and Market Reaction
Regardless of the merger outcome, both companies are proceeding with plans to spin off certain cable assets. Comcast intends to move forward with spinning off networks such as MSNBC and CNBC into a new entity called Versant early next year. Concurrently, Warner Bros. plans to separate its cable channels into a standalone business named Discovery Global.
The market reacted positively to the news of Comcast's bid. On Tuesday, Comcast shares rose as much as 2.6% in New York trading, while Warner Bros. stock gained over 3%. The Warner Bros. board is currently evaluating all offers and could reach a decision within days or request another round of bids.
This high-stakes auction began last month after Warner Bros. received several unsolicited offers, setting the stage for a potential mega-deal that will define the future of media and streaming competition.