Netflix’s proposed acquisition of Warner Bros Discovery’s studio and streaming unit is being framed as a way to reduce costs for consumers by offering a bundled Netflix–HBO Max subscription, according to two people familiar with the talks. The company has argued in recent discussions that combining the two services would create a lower-priced bundle. This is meant to address concerns that a merger between two major streaming rivals could limit choice or drive prices higher. Both sources requested anonymity to discuss confidential negotiations.
Warner Bros Discovery has been exploring a sale of all or part of its entertainment assets, which include its iconic film and television studios, cable networks such as HBO and CNN, and the HBO Max streaming platform. Reuters reported in October that Netflix was evaluating a bid, a move seen as potentially reshaping the streaming landscape. Netflix has since submitted a mostly cash offer for the division. By presenting the transaction as a pro-consumer deal, the company is attempting to build a regulatory defense in anticipation of scrutiny from U.S. authorities, the people said.
Other potential buyers—including Paramount Skydance and Comcast—would also rely on HBO Max and the Warner Bros library to strengthen their own streaming services. All parties see the studio’s catalog as a major strategic asset at a time when streaming companies are under pressure to increase subscriber growth and improve profitability. Netflix and Warner Bros Discovery declined to comment.
If successful, the deal would expand Netflix’s library with the entire HBO catalog, Warner Bros’ deep film archive, and DC Comics properties. Analysts note that the added content would be valuable, even if it does not dramatically expand Netflix’s market share, since most HBO Max subscribers already maintain Netflix accounts. Bank of America analyst Jessica Reif Ehrlich wrote that a combination of HBO Max with Paramount+ would create one of the strongest content portfolios in the industry, capable of challenging Netflix and Disney+. She added that HBO Max could also elevate Comcast’s Peacock, which has yet to become profitable, and warned that Comcast risks falling behind if rivals scale faster.
Despite Netflix’s leadership in subscriber numbers, analysts say the company still trails competitors in owning extensive intellectual-property libraries that can be monetized through theme parks, live experiences, gaming, merchandising, and other sectors. A successful acquisition would help address that gap. Still, Netflix faces political challenges, including criticism from some lawmakers who argue that absorbing Warner Bros Discovery could give the company too much cultural influence. Alphabet’s YouTube remains the most-watched streaming platform in the United States, ensuring that the competitive dynamics of the market remain complex as negotiations continue.
