Netflix Enters Exclusive Talks to Acquire Warner Bros. Discovery in Major Industry Shake-Up
- Sagar Mankar
- 10 hours ago
- 2 min read
Warner Bros. Discovery (WBD) has entered exclusive negotiations with Netflix over a potential acquisition deal.
According to reports by TheWrap, Netflix has reportedly offered $30 per share for WBD’s "Streaming & Studio" assets, a bid that includes a $5 billion break-up fee to match terms previously set by Paramount. While the exact structure of the new offer remains unclear, earlier bids were a mix of cash and stock.
This marks a significant turnaround for Netflix, which only months ago dismissed the track record of major media mergers. Paramount and Comcast were considered frontrunners, but after three rounds of bidding, Netflix emerged as the leading contender.
The deal would give Netflix control of Warner Bros. studios, HBO Max, and a library of iconic intellectual properties, including Harry Potter and the DC Universe.
WBD’s gaming division was not specifically cited in the report as part of the bid, but based on the company’s previously announced corporate split—expected in mid-2026—the division would fall under the “Streaming & Studios” umbrella. This business segment includes all entertainment and studio operations, while the second segment, “Discovery Global,” will house major TV brands such as CNN, TNT Sports, Discovery’s international networks, and digital products like Discovery+ and Bleacher Report.
Warner Bros. Games (WBG) remains one of the industry’s most valuable IP-driven publishers, building major titles around WBD-owned brands such as Batman: Arkham, Hogwarts Legacy, and DC’s Injustice series. Because these franchises are directly tied to WBD’s core IP library, separating the gaming division cleanly from a broader sale would be difficult. If Netflix ultimately acquires WBD’s studio assets, the gaming business would likely be part of the package, offering Netflix not only film and TV rights but also a substantial gaming portfolio.
For a company that has spent the past four years attempting to grow its gaming footprint with limited mainstream success, access to WBG’s catalog could significantly accelerate Netflix’s gaming ambitions.
Netflix will still need to navigate significant regulatory obstacles. Concerns over antitrust issues have already been raised, and any deal of this scale would face rigorous scrutiny from U.S. authorities.
Beyond the regulatory landscape, Hollywood insiders remain skeptical. While Netflix has pledged to honor Warner Bros.’s theatrical commitments, critics argue that the company’s limited experience in the theatrical space could disrupt established industry practices.
According to Variety, a collective of industry figures has sent a letter to Congress warning of potential damage to the entertainment ecosystem if the deal proceeds.