Netflix is in exclusive talks with Warner Bros Discovery over a deal worth up to $75 billion. The streaming giant would acquire its Hollywood studio and HBO Max service, home to popular franchises like Harry Potter and Batman. However, regulators have raised concerns that the deal could stifle competition.
As part of the deal, Netflix has offered a $5bn breakup fee if it fails to gain US regulatory approval. Analysts warn that combining two major streaming services in the US could lead to increased prices for consumers.
Warner Bros Discovery will first complete a spin-off of its cable channels before selling any assets. The company had previously received interest from several parties, including Paramount, which was seen as a frontrunner before Netflix entered the fray.
James Cameron has warned that a sale to Netflix would have significant consequences for the entertainment industry. Meanwhile, Paramount is still seeking regulatory clearance and has accused Warner Bros of an unfair auction process.
Source: https://www.theguardian.com/business/2025/dec/05/netflix-frontrunner-warner-bros-discovery-streaming-and-studio-sale