CNBC's David Faber calls the "Squawk on the Street" team to discuss what sources are telling him about the bidding for Warner Bros. Discovery. Paramount's bid for Warner Bros. Discovery is 100% cash while Netflix's bid is believed to be 85% cash, according to sources.

Los Angeles

Netflix is reported to be the leading bidder in the ongoing auction for Warner Bros. Discovery, according to sources familiar with the matter. The process is nearing its conclusion, with both Netflix and Paramount having submitted multiple bids, and current offers believed to exceed the mid-$20 billion range, though exact figures have not been disclosed.

Netflix's bid consists of approximately 85% cash and the remainder in stock, while Paramount's offer is entirely in cash. The board of Warner Bros. Discovery, along with CEO David Zaslav, currently views Netflix's bid as superior, but regulatory scrutiny is expected if Netflix prevails due to antitrust concerns. The outcome of the auction is anticipated soon, with the process possibly concluding within days.

Netflix is leading bidder for Warner Bros. Discovery: Sources

Market continues to absorb reports about this race for Warner Bros. Discovery. David Faber last week at this desk said he might be calling in on his week off, and indeed he is. Let's get to Faber on what we know at this point. Morning, David. Good morning, guys. Yeah, it seemed inevitable given how quickly things are moving. And what we can share at this point, according to people familiar with the situation, is that Netflix is in the lead in the bidding for Warner Bros. Discovery. Now, that does not mean that it ultimately will be victorious, but we are getting down to the very end of this process, of course. As people know, bids have been made a couple of times by all the parties, and there is an expectation now that Paramount, if it wants to win, is going to have to come back at an even higher price. Now, specific to what that price might be, I can't tell you, because no one has shared the specifics with me in terms of at least the overall numbers, although it does seem that we're getting sort of above the mid-20s at this point. Most likely, I would say that's still got to be in the area of speculation, although perhaps informed speculation. What I can tell you is Paramount's bid is 100% cash, and that Netflix bid is believed to be as much as 85% in cash, the remainder in stock. And if things were to end today, Netflix would appear to be the winner of this auction. That said, it's probably going to go through the weekend, although we may very well see an end to this process early next week. And of course, the question for Paramount will be what can they do to potentially compete with at least what seems to be, again, according to people familiar with the situation, a superior bid, at least in the opinion of the board of Warner Brothers, of those on the board who are making that decision, along with the company's CEO, David Zaslav. So any number of questions, of course, guys, when it comes to Netflix, we've raised them many times. The company has never put itself under the regulatory scrutiny that certainly would be coming with an antitrust investigation of putting together the number one streamer with the number four streamer. How long would the process take? What is the posture of the Trump administration in terms of Netflix? How long, how much do you actually put in a reverse break feed to assuage those concerns, given how long this could stretch for if Netflix were to win? And then, of course, the larger question, guys, which is, well, what does it really say about Netflix's view of its business if it's willing to have been as competitive as it has thus far? And, you know, we saw the decline yesterday in the stock, I think as shareholders beginning to realize that they very well may win this win this bid. But again, guys, it remains to be seen because there is still a little bit more to go here. But, Jim, love to get your take in terms of how you view a potential combination, because and again, let me make another point here. This is Netflix bid for streaming and studio. You remain or the company that is global networks remains a public company, which would be valued by the market. We don't know where three bucks a share, four bucks a share, perhaps in value. You do also have some tax leakage from a Netflix deal versus the much cleaner, as I pointed out many times, paramount deal for the entire company, one price, all cash and conceivably with an easier road on the regulatory front. So that's where things stand.

The New York Times has sued the U.S. Defence Department and Defence Secretary Pete Hegseth in an effort to force the Pentagon to abandon its restrictive new press policy. The Times alleges that the policy, rejected by at least 30 news organizations, violates its rights to free speech and due process.

New York

New York Times sues Pentagon, Hegseth over press restrictions

President Trump weighed in on Russian President Vladimir Putin's meeting with his envoy, Steve Witkoff, and his son-in-law, Jared Kushner. CBS News' Ramy Inocencio has more.

Moscow

Ukraine Invasion

Trump insists Putin wants to end Ukraine war after Witkoff's trip

Democrats have released never-before-seen images in the Jeffrey Epstein case. They were taken at his private island estate. It comes as the Trump administration faces a deadline to release the full Epstein case files in two weeks.

Newly released images and videos show Epstein's private island estate

Venezuela holds the world’s largest proven oil reserves, more than five times more than the United States.

Caracas

Maduro accuses U.S. of pushing for regime change to get Venezuela’s oil

Australia starts enforcing a landmark ban requiring social media platforms to take down accounts belonging to under-16s

Canberra

Australia under-16s social media accounts to be taken down

European Union lawmakers and member states reached a deal to ban all imports of Russian gas before the end of 2027, as the bloc seeks to choke off key funds feeding Moscow's war chest. Aimed at breaking a reliance the bloc has struggled to end despite the invasion of Ukraine, the accord marks a compromise between EU capitals and the European Parliament, which wanted the ban to hit sooner.

Brussels

EU agrees deal to ban Russian gas by end of 2027

President Trump pardoned Democratic Rep. Henry Cuellar of Texas and his wife on Wednesday. The couple was indicted in 2024 on more than a dozen federal charges. Cuellar has denied any wrongdoing.

Washington

Trump pardons Democratic Rep. Henry Cuellar and his wife

Sources say the Pentagon watchdog found Defense Secretary Pete Hegseth could have endangered American service members when he shared military information in a Signal group chat in March. Alex Plitsas, a former Pentagon official, joins "The Daily Report" to discuss.

Watchdog found Hegseth jeopardized sensitive military information

Democrats on the House Oversight Committee Wednesday released never-before-seen images of the private island owned by convicted sex offender Jeffrey Epstein. CBS News legal reporter Katrina Kaufman has more details.

Never-before-seen images of Jeffrey Epstein's island released

The doctor who pleaded guilty to selling ketamine to Matthew Perry in the weeks before the actor's overdose death has been sentenced to 30 months in prison.

Doctor who sold Matthew Perry ketamine sentenced to 30 months in prison

Google subsidiary YouTube has criticized an Australian law banning social media accounts for under-16s, arguing the legislation set to start Dec 10 makes young users of Instagram, Facebook, TikTok and YouTube less safe.

YouTube attacks Australia's underage social media ban

U.S. envoys Jared Kushner and Steve Witkoff met Putin in the Kremlin on a revised Ukraine peace plan but left without a deal. Russia insists on territorial gains, army cuts, and blocking NATO membership, while Zelenskyy calls for long-term deterrence against future aggression.

U.S. envoys Kushner, Witkoff leave Kremlin without Ukraine deal

U.S. President Donald Trump, in a televised cabinet meeting, said “I don't want them in our country” about Somali immigrants, sparking outrage from politicians and migration experts. His remarks coincided with reports of planned federal raids targeting Minneapolis’ Somali community.

Trump targets Somali immigrants amid reports of Minneapolis raids

A Russian tanker carrying sunflower oil was hit by a drone off the Turkish coast, with no casualties. The attack is part of recent strikes on Russian-flagged vessels targeting Moscow’s oil sector, while Putin warns of possible retaliatory measures.

Russian tanker attacked off Turkey, Putin warns of retaliation

U.S. Defense Secretary Pete Hegseth said he had watched the first U.S. strike in September on an alleged drug-smuggling vessel in real time, but did not see survivors in the water or the second lethal strike that he described as being carried out in the "fog of war."

Hegseth says he didn't see survivors before second strike on boat

Republican comfortably beats Democratic challenger after polls showed candidates in a close race in US state.

Tennessee

Trump’s pick Van Epps wins special election in deep-red Tennessee

U.S. President Donald Trump threatened to expand his crackdown on drug trafficking during a cabinet meeting, suggesting he’d order land strikes on Venezuela and attacks on any country transporting illegal drugs into the U.S.

Trump threatens to expand strikes beyond Venezuela

Ahead of a meeting to discuss the U.S. proposal for peace in Ukraine, Russian President Vladimir Putin dismissed European counter-proposals as 'unacceptable' and said his country was ready for war if Europe wants one.

Putin says Russia is 'ready' if Europe wants war

OpenAI has declared a "code red" as Google threatens to unseat the AI industry's early leader, according to the Wall Street Journal. Technology journalist Jacob Ward joins CBS News to discuss.

California

OpenAI declares 'code red' as Google threatens its AI lead

Russian President Vladimir Putin met U.S. President Donald Trump's special envoy Steve Witkoff and son-in-law Jared Kushner in the Kremlin on Tuesday (December 2) for talks on a possible way to end the deadliest European conflict since World War Two.

Putin meets Trump envoys Witkoff, Kushner for Ukraine peace talks

Secretary of Defense Pete Hegseth said during a Cabinet meeting on Tuesday that the deadly boat strikes in the region near Venezuela and Colombia have "only just begun." This comes as Republicans and Democrats in Congress question the legality of the military action.

Hegseth defends boat strikes near Venezuela during Cabinet meeting

President Vladimir Putin has hailed what his commanders told him was the full Russian capture of the city of Pokrovsk in eastern Ukraine as an important victory after a prolonged campaign, saying it would help Moscow fulfil its wider war aims.

Pokrovsk

Russia claims control of Pokrovsk

Major rescue and recovery efforts are underway across Southeast Asia after a series of severe storms battered the region displacing millions and killing more than 1,100 people.

Nuwara Eliya

Severe storms batter Southeast Asia, displacing millions

Honduras’ presidential race is too close to call, with Nasry Asfura and Salvador Nasralla nearly tied at just under 40% each as technical glitches delay official results.

Tegucigalpa

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Airbus must inspect hundreds of its A320 jets for potential quality flaws in the plane's body as a total of 628 aircraft contain panels that may be too thick or too thin due to a manufacturing issue at a supplier.

Blagnac

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U.S. President Trump warns against actions that could ‘interfere with Syria’s evolution’ amid new Israeli incursions and strikes.

Damascus

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The White House confirmed it authorized a second airstrike on an alleged Venezuelan drug boat in September, but denied it ordered everyone on board be killed, which would be considered a war crime.

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Monday is World AIDS Day. It has been recognized globally since 1988, but this year, the U.S. government is not commemorating it for the first time.

U.S. not recognizing World AIDS Day this year

Operation "Swamp Sweep," a monthslong immigration crackdown centered in New Orleans, is set to begin Monday. CBS News national reporter Kati Weis has the details.

New Orleans

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Luigi Mangione, the man charged with murdering UnitedHealthcare CEO Brian Thompson, was in a New York City courtroom on Monday for a pre-trial hearing focused on what evidence the jury will see. CBS News' Anna Schecter has the details.

Breakdown