Warner Bros. Discovery in Talks with Netflix: What This Could Mean for the Future of Streaming Investments and Business Opportunities
Warner Bros. Discovery, the established entertainment giant behind iconic franchises such as Harry Potter and Batman, is in exclusive negotiations with Netflix to sell its movie and television studios along with the HBO Max streaming service. This information comes from two sources familiar with the discussions who were not authorized to speak publicly.
Such a deal would profoundly impact Hollywood and the broader media industry. Netflix, already the largest paid streaming platform globally with over 300 million subscribers, would significantly increase its influence by acquiring Warner Bros. Discovery’s assets. This move could reshape industry dynamics, potentially forcing smaller companies to merge to remain competitive, while giving Netflix greater negotiating power with theater chains and entertainment unions.
This potential acquisition marks a historic moment: it would be the first major legacy Hollywood studio to be acquired by a Silicon Valley tech company, reflecting the growing dominance of technology firms in entertainment. Prior to this, tech companies have primarily expanded independently rather than through purchasing major studios.
The decision to enter exclusive talks with Netflix follows a competitive bidding process involving Comcast and Paramount. All three submitted improved offers recently, with Netflix’s bid primarily in cash. Comcast is also vying for the studios and HBO Max, while Paramount CEO David Ellison aims to acquire the whole of Warner Bros. Discovery, including its traditional TV channels like CNN and TNT.
A standout aspect of Netflix’s proposal is its commitment to continue theatrical releases for Warner Bros. Discovery films, an important shift for Netflix, which has traditionally emphasized home viewing over box office distribution.
This prospective acquisition is unprecedented in scale for Netflix, which has previously focused on organic growth rather than large-scale purchases. Industry observers were surprised by Netflix’s aggressive bid, especially given the company’s reputation as a builder rather than a buyer, as co-CEO Greg Peters noted in October.
Federal regulatory approval will be required for any deal, with antitrust considerations influenced by how authorities classify the rapidly shifting media landscape amid growing competition from tech giants like Apple and Amazon.
Political factors may also play a role. Paramount’s Ellison has cultivated favorable ties with President Donald Trump, who has expressed support for his family’s ownership of Paramount, while Comcast CEO Brian Roberts has faced criticism from Trump.
Concerns about the potential deal have emerged from the film community. On Thursday, a group of anonymous feature film producers sent a letter to Congress expressing serious apprehensions about Netflix purchasing Warner Bros. Discovery. They argued that Netflix’s business model discourages theatrical viewership and could harm theaters, warning of “monopolistic control” of the streaming market. The producers chose anonymity due to fear of retaliation.
Warner Bros. is a symbol of classic Hollywood, with a century-old film library including timeless classics like Casablanca, The Maltese Falcon, Bonnie and Clyde, and The Shining. The studio also holds rights to MGM masterpieces such as The Wizard of Oz and Gone With the Wind. Recently, Warner Bros. enjoyed one of its strongest box office seasons ever, releasing eight consecutive hits, including award contenders like Ryan Coogler’s “Sinners” and Paul Thomas Anderson’s “One Battle After Another.”
HBO, part of Warner Bros. Discovery, is a leading premium television network with popular shows like Euphoria, The Gilded Age, and The White Lotus.
By acquiring Warner Bros. Discovery, Netflix would significantly enhance its content portfolio, gaining beloved intellectual properties such as Bugs Bunny and hit TV series like Friends and Game of Thrones. While Netflix has proven successful in developing original hits like Stranger Things and K-Pop Demon Hunters, it has lacked the kind of long-standing, multigenerational franchises that consistently draw viewers, as noted by analyst Robert Fishman in a recent report.
This article originally appeared in The New York Times.
Special Analysis by Omanet | Navigate Oman’s Market
The potential acquisition of Warner Bros. Discovery by Netflix signals a major shift in the global entertainment landscape, emphasizing the rise of tech giants over traditional media studios. For businesses in Oman, this creates new opportunities to leverage global digital content trends and streaming platforms, while also highlighting the risks of market consolidation and reduced competition. Smart investors should consider the growing influence of content streaming and explore partnerships or investments in digital media and tech-driven entertainment sectors to stay ahead.
