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Netflix is on the brink of the most seismic acquisition in entertainment history.
The streamer has clinched the winning bid for Warner Bros. Discovery’s core studio and streaming assets, entering exclusive negotiations that could see it take control of franchises from Harry Potter to Game of Thrones for a staggering $72 billion.
Sources confirmed that the streaming giant tabled an offer, primarily in cash, topping rival proposals from Paramount and Comcast. The bid, which includes a formidable $5 billion break-up fee, secures Netflix a period of exclusive talks to acquire the legendary Warner Bros. film and television studio and the HBO Max streaming service.
The fast-tracked auction was triggered after Warner’s board formally explored a sale in October, having received overtures from Paramount. With a target to finalise a deal by mid-to-late December, momentum accelerated rapidly among regulators, bankers, and rival suitors.
The proposed structure leaves Warner’s linear cable assets, including CNN and TNT Sports, facing an uncertain future, likely to be spun off into a separate company, tentatively dubbed Discovery Global.
The battle has exposed fierce corporate tensions. Paramount, in correspondence to the WBD board reportedly raised significant concerns about antitrust scrutiny, arguing that folding HBO Max into Netflix’s dominant global streaming platform would invite serious regulatory intervention. It contended its own offer presented a “more straightforward path to closing.”
Paramount also alleged the sale process was influenced by management incentives, pointing to revised compensation terms for WBD CEO David Zaslav that account for a potential sale.
Investor reaction was euphoric. WBD shares surged nearly 6% in late trading to around $26, a 52-week high and a dramatic recovery from a low of $7.50 earlier this year.
Analysts say Netflix’s aggressive move signals a profound strategic shift. “They were willing to pay for the elimination of a competitor, the acquisition of franchise control, and the synergy potential,” noted Jessica Reif Ehrlich of Bank of America.
She described Warner Bros. Studios as a “crown jewel,” its value rooted in a century-deep library and unrivalled IP spanning DC Comics, The Lord of the Rings, Friends, and the Wizarding World. The potential merger sets the stage for intense regulatory scrutiny in 2026.
Should it clear those hurdles, the combined entity would wield unprecedented control over both modern streaming hits and vast swathes of Hollywood heritage, fundamentally altering how the world is entertained - and leaving storied brands like CNN potentially out in the cold.
