Netflix is exploring a potential acquisition of Warner Bros Discovery’s studio and streaming business, Reuters news report said.
The streaming giant has hired investment bank Moelis & Co, which previously advised Skydance Media in its successful bid for Paramount Global, to assess a possible offer.
Netflix has been granted access to Warner Bros Discovery’s data room, giving it insight into the company’s financial information necessary for a formal bid. Neither Netflix nor Warner Bros Discovery has commented on the development.
Netflix’s streaming business currently boasts 301.6 million paid subscribers and generated around $39 billion in revenue in 2024, with estimated revenue for the trailing twelve months of 2025 at about $41.7 billion. Netflix has been increasing its monetization through advertising and stricter enforcement of password sharing, supporting higher average revenue per user (ARPU). Warner Bros Discovery’s streaming segment, including HBO and HBO Max, posted revenue of $2.8 billion in Q2 2025, growing about 8–9 percent. Warner Bros Discovery’s streaming subscriber base is 125.7 million globally, with significant additions in recent quarters. The company’s focus on its Direct-to-Consumer segment has driven growth of around 20 percent in subscribers, positioning the streaming business as a key driver for future growth despite its smaller scale compared to Netflix.
If the deal materializes, Netflix would gain control over some of Hollywood’s most valuable entertainment assets, including the Harry Potter and DC Comics franchises. Warner Bros’ television studio also produces several Netflix originals such as Running Point, You, and Maid. Additionally, acquiring HBO and its companion streaming service would significantly strengthen Netflix’s content portfolio and prestige programming lineup.
Netflix’s global reach across more than 190 countries, paired with HBO’s reputation for prestige storytelling, could elevate Netflix’s brand as both a mainstream and premium entertainment provider. The addition of HBO’s award-winning dramas and Warner Bros films would also strengthen Netflix’s offering in the competitive streaming landscape.
Financial and Operational Efficiency:
By merging production, distribution, and technology operations, the combined business could achieve significant cost savings. Netflix’s expertise in recommendation algorithms and content analytics could enhance Warner Bros Discovery’s audience targeting and programming decisions.
Market Expansion and Competitive Edge:
The acquisition would give Netflix control over valuable franchises that competitors like Disney and Amazon rely on to attract subscribers. With Warner Bros Discovery’s studios and HBO content, Netflix could accelerate growth in markets where it seeks stronger local content presence.
Netflix CEO Ted Sarandos recently told investors that while the company has historically been “more builders than buyers,” it remains open to strategic acquisitions that enhance its entertainment offerings. However, Ted Sarandos made it clear that Netflix is not interested in Warner Bros Discovery’s traditional cable television assets, including CNN, TNT, and Food Network.
Warner Bros Discovery, meanwhile, is evaluating several options after receiving unsolicited offers, including one from Paramount Skydance. The company’s board is weighing whether to proceed with its planned corporate split — separating the Warner Bros film and TV studios, HBO, and HBO Max from its television business — or to sell parts or all of the company.
Comcast President Mike Cavanagh noted that the company is also assessing potential media acquisitions that align with its strategic interests, suggesting growing consolidation interest across the entertainment sector.
If Netflix proceeds, the move would represent one of the most ambitious acquisitions in its history, potentially reshaping the competitive landscape of global streaming and content production.
Baburajan Kizhakedath