Netflix Reportedly Weighs Acquisition of Warner Bros. Discovery in Major Streaming Shake-Up

Netflix Inc. is considering an outright purchase of Warner Bros. Discovery Inc., a move that would combine the world’s largest subscription streaming platform with one of Hollywood’s most established studios, according to people familiar with preliminary discussions.

The exploratory talks, described as early and non-binding, emerge as the streaming landscape shifts under growing competitive and financial pressures. Any agreement would unite Netflix, which holds more than 300 million paid memberships worldwide, with Warner Bros. Discovery’s film assets and the HBO Max streaming service. Warner Bros. Discovery carries a market capitalization of roughly $53 billion, compared with Netflix’s approximate $461 billion valuation.

Potential scope of the transaction

Warner Bros. Discovery, formed through the 2022 merger of WarnerMedia and Discovery, controls a vast content catalogue stretching back nearly a century. The library includes classic titles from Warner Bros. Pictures, the DC Comics universe, and a range of popular television series. Recent theatrical releases such as “F1” and “Superman” have reinforced the studio’s commercial profile in 2025.

HBO Max, the company’s flagship direct-to-consumer platform, and the smaller niche service Paramount+ together count about 30 million subscribers, according to internal estimates cited by industry analysts. By contrast, Netflix’s subscriber base exceeds 300 million, giving the Los Gatos, California-based company a dominant position in every major streaming market.

Netflix has historically relied on original programming to attract and retain users, pledging to invest $18 billion in content during the current fiscal year. Signature series such as “Squid Game,” “Wednesday” and “Stranger Things” underscore the company’s commitment to self-funded productions. Adding Warner Bros. Discovery’s intellectual property would diversify the Netflix catalogue and reduce long-term dependence on third-party licensing.

Competitive pressures

If completed, a Netflix–Warner Bros. Discovery tie-up would arrive amid intensifying competition. Alphabet Inc.’s YouTube Premium and Google One services already report a paid user base of approximately 300 million, placing them on par with Netflix in raw subscriber counts. Alphabet continues to expand its offering of ad-free video and cloud storage bundles, pushing deeper into entertainment distribution.

The streaming sector has also observed frictions between traditional media conglomerates and emerging digital platforms. Walt Disney Co. and YouTube, for example, remain locked in a carriage dispute that has affected availability of certain Disney-owned channels on the Google-run video site. These tensions highlight the strategic value of owning both content and distribution, a dynamic that favors further consolidation.

Financing considerations and potential hurdles

With a market capitalization nearly nine times larger than Warner Bros. Discovery’s, Netflix possesses the financial scale needed for a cash-and-stock proposal. Nonetheless, the deal would represent the company’s largest acquisition to date and could raise antitrust concerns in the United States and abroad. Regulators have recently increased scrutiny of mergers that concentrate media assets under a single corporate umbrella.

Analysts note that absorbing Warner Bros. Discovery would expand Netflix’s liabilities as well as its assets. The studio carries billions in long-term debt, and integrating diverse corporate cultures could pose operational challenges. Additionally, existing content licensing agreements with third parties might require renegotiation or termination fees.

Imagem: financial planning 3

Despite these complexities, investors have already signaled belief in Warner Bros. Discovery’s takeover prospects. Its share price has risen in recent weeks as speculation of potential suitors—including Paramount Skydance Corp.—intensified. Paramount Skydance, however, commands a substantially smaller equity valuation and would likely need significant external financing to mount a competitive bid.

Strategic implications for Netflix

Acquiring Warner Bros. Discovery would grant Netflix access to a legendary studio brand, a deep reservoir of intellectual property, and relationships across theatrical distribution networks. Such assets could bolster Netflix’s ambitions in international box-office releases, merchandise licensing and theme-park partnerships, areas where the company maintains limited exposure compared with traditional media giants.

The additional subscribers from HBO Max and Paramount+ would provide immediate recurring revenue, although precise profit projections remain difficult without disclosure of average revenue per user and churn rates. Still, the transaction could reinforce Netflix’s position as the pre-eminent global streaming provider even as tech titans and legacy studios escalate their own direct-to-consumer strategies.

Market observers will monitor forthcoming quarterly earnings calls and regulatory filings for any confirmation of formal negotiations. Should Netflix proceed, the acquisition would represent one of the most consequential media consolidations since The Walt Disney Co.’s purchase of 21st Century Fox in 2019, a deal the U.S. Department of Justice ultimately approved under stipulated divestitures after antitrust review.

No timeline for a potential offer has been disclosed, and representatives for Netflix and Warner Bros. Discovery declined to comment publicly on the matter.

Crédito da imagem: Kids’ WB