Netflix has entered exclusive negotiations to acquire Warner Bros. Discovery’s film and television studios and its HBO Max streaming service, according to a Bloomberg report. The move positions Netflix ahead of rival bidders Paramount Skydance and Comcast in what would be one of the biggest entertainment takeovers in history.
Bloomberg reports that Netflix has offered a US$5 billion breakup fee should regulators refuse to approve the acquisition. Sources said a deal could be announced within days if the talks stay on track. Warner Bros., valued at more than US$60 billion, plans to spin off its cable channels, including CNN, TBS and TNT, before completing any sale.
If agreed, the deal would reshape Hollywood by uniting the world’s largest paid streaming service with one of its oldest and most iconic studios. It would also mark a major strategic shift for Netflix, which grew into a US$437 billion company without owning a legacy studio or deep content library, instead relying first on licensing deals and later on original programming.
Netflix eyes Warner Bros. acquisition
Under the proposed acquisition, Netflix would gain the HBO network and its acclaimed catalogue, including The Sopranos and The White Lotus. Warner Bros.’ assets also include its vast Burbank studios and major franchises such as Harry Potter and Friends.
The negotiations are a blow to Paramount Skydance Chief Executive David Ellison, who set off the bidding war with multiple unsolicited offers. Bloomberg reports that Paramount accused Warner Bros. of favouring Netflix in what it called a “tainted” sale process. Paramount previously argued that its proposal was more likely to receive global regulatory approval.
The backdrop to the sale is a shrinking traditional television business. Warner Bros. recently reported a 23 per cent drop in revenue from its cable networks as viewers migrate to streaming and advertisers follow. While Netflix ended 2024 with roughly US$39 billion in revenue, Warner Bros. generated a similar amount but remains under pressure from declining linear TV revenues.
Any final agreement would face significant antitrust scrutiny in the United States and Europe. US lawmakers have already raised concerns. California Republican Darrell Issa warned regulators the deal could harm consumers, while Utah Senator Mike Lee echoed similar objections. Netflix counters that Alphabet’s YouTube is one of its largest competitors.
News of Netflix’s interest has sent ripples through Hollywood. The company is known for limiting theatrical releases of its films, raising fears among cinema operators and traditional studios about the future of major releases if the acquisition proceeds.
Both Netflix and Warner Bros. declined to comment on the ongoing negotiations, according to the Bloomberg report.
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