Comcast Corp.

is looking to merge its

NBCUniversal division

with

Warner Bros. Discovery Inc.

, according to people familiar with the company’s plans.

Comcast on Monday made a renewed offer for part of Warner Bros. that would give it control of the

combined entity

, according to the people, who asked not to be identified because the terms haven’t been made public.

Warner Bros. shareholders would receive a combination of cash and stock in the new entity. Comcast, a Philadelphia-based

cable-TV and internet-service provider

, is among three Warner Bros. suitors that submitted offers this week in a second round of bidding.

Comcast aims to create a larger entertainment behemoth, combining the NBC TV network, the company’s film and TV studios, and its theme parks, with Warner Bros., the people said. Obtaining Warner Bros.’ HBO Max would boost NBC’s Peacock streaming service.

Shares of Comcast rose as much as 2.6 per cent Tuesday in New York after Bloomberg reported on its plan. Warner Bros. was up more than three per cent.

Comcast would continue with its plans to spin off cable-TV networks such MS Now and CNBC as Versant in a transaction expected to take place early next year. Warner Bros. would also continue with plans to separate its cable channels, such as CNN and TNT, into a separate business called Discovery Global.

Comcast has offered Warner Bros. chief executive David Zaslav a management role with the new entity, the people said.

Warner Bros. put itself up for sale last month after receiving several unsolicited bids from Paramount Skydance Corp. Netflix Inc. is also one of the three bidders that submitted revised offers on Monday. Warner Bros.’ board is evaluating the offers and could make a decision in the coming days or ask for another round of bids.

Bloomberg reported on Monday that Netflix’s bid was mostly in cash and that the company was looking to raise tens of billions of dollars in a bridge loan. Like Comcast, Netflix is interested only in Warner Bros. studios and streaming business.

Paramount made an all-cash offer for Warner Bros. that relies in part on financing from Apollo Global Management Inc. and several Middle Eastern funds. Unlike the other bidders, Paramount is looking to acquire Warner Bros.’ cable channels.

The winner will likely face regulatory challenges in trying to merge with one of Hollywood’s largest film and TV producers. Bloomberg reported earlier that Netflix has told Warner Bros. management it would continue to release the company’s movies in theatres.

  • Warner Bros.’ suitors all bring regulatory baggage to auction
  • Paramount said to discuss Warner bid with Apollo, Legendary

Bloomberg.com