Streaming Showdown: Netflix Secures Exclusive Talks for Warner Bros. Discovery Assets in Blockbuster Bid to Reshape Hollywood

Netflix has begun exclusive negotiations to purchase Warner Bros. The talks signal a major shift in Netflix’s strategy, as acquiring one of Hollywood’s oldest and most respected studios would significantly reshape the competitive landscape of global entertainment.

People familiar with the discussions say Netflix has indicated a valuation in the range of $70–75 billion for the assets and proposed paying $28–30 per share, well above WBD’s recent trading price of about $24. WBD’s total market capitalization is roughly $60 billion. The offer is said to be mostly cash and includes a $5 billion termination payment if U.S. regulators block the deal. Before any transaction closes, WBD intends to separate its traditional cable networks—such as CNN, TBS, and TNT—into a standalone business.

If completed, the acquisition would place the HBO brand and its acclaimed catalog—including series like The Sopranos, Game of Thrones, and Succession—under Netflix’s control. The package would also bring the expansive Warner Bros. library, spanning franchises such as Harry Potter and the DC universe, as well as substantial production infrastructure. For Netflix, which has historically avoided major mergers, the deal would supply deep intellectual-property reserves and in-house production capabilities, helping it maintain advantages over competitors including Disney and Paramount.

The bidding process has not been free of conflict. Paramount, once considered a leading contender and also willing to include a $5 billion breakup fee, argued that WBD conducted an unbalanced sale process that favored Netflix. Paramount maintained that its own proposal would likely encounter fewer regulatory hurdles because Netflix already dominates subscription streaming.

Industry groups and creative guilds have voiced concern as the potential merger gains momentum. The Directors Guild of America warned that the combination raises serious questions about how creative professionals might be affected and plans to consult directly with Netflix. Cinema United, representing theater owners, said the transaction could endanger the global cinema ecosystem, asserting that Netflix’s streaming-first model conflicts with the interests of theatrical exhibitors. Meanwhile, a group of prominent performers—speaking anonymously—called on Congress to scrutinize the deal, citing apprehensions about potential retaliation due to Netflix’s substantial market influence. Analysts have similarly noted that merging two major streaming services could prompt competition-policy challenges.