The global streaming landscape is experiencing one of its most delicate moments . Netflix, the world's leading subscription platform, has opened negotiations to acquire Warner Bros. Discovery's film and television studios and its video-on-demand business, including HBO Max. If the move is successful, it would represent a historic upheaval for Hollywood and would have a direct impact on European markets, where both brands have a strong presence. Analysis of this potential deal.
The deal, according to various leaks from media outlets such as Bloomberg , Financial Times , Variety , and The Wall Street Journal , revolves around an offer valued at approximately $83.000 billion (around €71.200 billion), with a proposed payment primarily in cash and a premium over Warner Bros. Discovery's stock market valuation. This comes amidst intense scrutiny from regulators in the United States and other regions, including the European Union, regarding any concentration of power in the sector. The Reuters report indicates that Netflix is considering an offer for the studios.
A multi-million dollar offer and Netflix's strategic shift
According to leaked information, Netflix has reportedly offered $28 per share for Warner Bros. Discovery , a company with a market capitalization already exceeding $60.000 billion. Some analysts are even suggesting scenarios of up to $30 per share, which would value the assets in question at over $75.000 billion, making it the largest corporate transaction in recent entertainment history. For more details and scenarios regarding the negotiation.
To bolster its position and reassure Warner, Netflix reportedly offered a buyout clause of up to $5.000 billion (approximately €4.287 billion) should regulators block the acquisition. This compensation would act as a safety net for Warner Bros. Discovery, ensuring substantial payout even if the transaction is never completed.
The Los Gatos-based company would thus shift from its traditional organic growth strategy—focused on licensing and original productions—to an aggressive push for vertical integration : controlling not only the platform, but also one of Hollywood's oldest and most established catalogs and studios. After nearly three decades since it began renting DVDs by mail, Netflix is now aiming for the role of a classic major studio, with direct access to intellectual properties that can sustain its growth for years to come.
In this context, analysts emphasize that the deal wouldn't immediately boost Netflix's market share, but it would solidify its position against rivals like Disney+, Amazon Prime Video, and Apple TV+ . The transaction is interpreted as a race to secure flagship catalogs at a time when the streaming market is beginning to show signs of maturity, particularly in the United States and Western Europe.
What's at stake in the deal: studios, HBO Max, and a unique catalog
The package on the table is of an unusual scale: Warner Bros. Discovery's film and television studios and the HBO Max platform would be integrated into the Netflix ecosystem. This includes units such as Warner Bros. Pictures, New Line Cinema, Warner Bros. Television Studios, and DC Studios, in addition to the streaming division that encompasses HBO content and the group's other brands.
Among its assets are franchises of enormous commercial and cultural weight: DC Comics (Batman, Superman, Wonder Woman) , the Harry Potter and Lord of the Rings sagas , historic animation brands like Looney Tunes and Hanna-Barbera, and a television catalog featuring titles such as Friends , Game of Thrones , The Sopranos , The Wire , and Six Feet Under . For Netflix, which has been grappling for years with the challenge of building its own recognizable franchises, this would be a giant leap.
One of the key conditions for Warner Bros. Discovery is that films continue to be released in theaters . Reports from the Financial Times , Variety , and other media outlets agree that Netflix has guaranteed the continued theatrical releases of Warner Bros. productions, at least initially. This aims to ease tensions with the exhibition industry, which are particularly sensitive in Europe, where distribution windows are protected by specific laws in several countries.
Meanwhile, Warner Bros. Discovery is moving forward with the spin-off of its cable television channels —including CNN, TBS, and TNT—before finalizing any sales. The idea is to separate the linear network assets from the studio and streaming assets, so that the package that regulators would review is clearer and more focused on the on-demand audiovisual business.
If the integration is completed, the new combination of Netflix and Warner's assets would result in a combined subscriber base of nearly 450 million worldwide , according to market estimates. In Europe, where HBO Max and its successors have been gaining ground in countries like Spain, France, Italy, and the Nordic countries, the deal would completely reshape the competition for users' screen time.
A fierce bidding war: Paramount and Comcast, on the other side
The sale process for Warner Bros. Discovery began last October with a competitive bidding process among several media giants . Paramount Skydance, backed by Middle Eastern sovereign wealth funds, was one of the first to submit an offer, initially proposing around $27 per share for the entire company, including its linear television channels. Relatedly, there are rumors of a merger between Warner and Paramount.
Comcast later joined the bidding, while Netflix focused its interest from the outset on the studios and the streaming platform , without aiming for the entire conglomerate. After several rounds of negotiations, the last on December 1, Warner Bros. Discovery reportedly concluded that Netflix's proposal was the most attractive, both in terms of financial valuation and the guarantees offered to protect theatrical releases and the future of its brands.
The decision to open exclusive negotiations with Netflix has, however, sparked considerable controversy. Paramount Skydance's lawyers sent a letter to Warner Bros. Discovery CEO David Zaslav, accusing the group of favoring a single bidder and conducting an "unfair" and "flawed" sales process.
In that letter, Paramount requests confirmation as to whether Warner's board of directors has formed a special independent committee to evaluate the offers, composed of members with no personal interests in the outcome of the transaction. If such a committee does not exist, they request its creation and full powers to safeguard the process against future legal challenges.
According to these same sources, Paramount suspects that certain Warner executives could personally benefit from a deal with Netflix, either through new positions in the resulting company or through financial incentives tied to the sale. Warner Bros. Discovery, for its part, remains publicly silent and simply emphasizes that no negotiations have yet concluded.
Regulatory pressure and antitrust concerns in the US and Europe
Beyond the disputes between companies, the biggest obstacle that could halt the deal lies in the regulatory arena. The merger of two of the world's most influential streaming catalogs is generating concern among competition regulators and industry organizations. In the United States, some political voices have already warned that a deal of this magnitude will be scrutinized in detail under antitrust laws.
Various industry groups, from directors' unions to exhibitors' associations, have expressed concern about the potential concentration of creative and distribution power in a single player. Their main fear is that a platform with Netflix's reach, combined with the influence of Warner and HBO, will reduce the diversity of content providers and excessively dictate which projects are released and under what conditions.
In Europe, the European Commission and national competition authorities, such as the CNMC in Spain or its counterparts in France and Germany, would have to analyze the impact on local audiovisual markets . Although Netflix and Warner's market share varies across countries, the merger could affect licensing agreements with free-to-air broadcasters, local platforms, and European video-on-demand services.
Furthermore, the release window model in Europe—more rigid than in the United States—complicates the equation. Currently, many Warner productions premiere in theaters first and then arrive on streaming services or pay-TV channels, while Netflix typically shortens the window as much as possible or releases directly on its platform . Any abrupt change to this dynamic could clash with national regulations designed to protect theatrical exhibition and independent production.
Firms like Morgan Stanley have indicated that, should the deal go through, Netflix might be tempted to gradually shift Warner and HBO content to exclusive distribution on its service , reducing sales to third parties and theatrical releases. This scenario would be a key issue for regulators to monitor, as they could impose conditions or divestments to approve the transaction.
Potential impact on users in Spain and Europe
The potential acquisition comes at a time when European audiences are feeling a certain weariness with the proliferation of streaming platforms. In Spain, for example, many households combine Netflix with HBO Max, Disney+, Amazon Prime Video, or other alternatives, resulting in a monthly subscription burden that is difficult for some users to maintain.
Industry sources indicate that, should the deal go through, Netflix could leverage catalog synergies to design more attractive packages or even reduce the combined price compared to the current cost of two separate services. In the Spanish market, where price sensitivity is high and account sharing has been cracked down on, this could be a significant way to retain and attract subscribers.
Another unknown is the future of the HBO brand in Europe. The brand has become synonymous with prestigious fiction for many viewers and critics. If HBO Max content were fully integrated into Netflix, it remains to be seen whether any internal differentiation would be maintained—for example, specific labels or collections—or whether it would be diluted within the platform's general catalog.
For European production companies, the effect could be ambivalent. On the one hand, an even larger giant could have more leverage to commission local series and films , as Netflix already does in Spain with original titles. On the other hand, the growing power of a single company could make it more difficult to negotiate favorable terms or develop risky projects that don't fit into the platform's broader global strategies.
In any case, the integration would also force competitors—including European platforms and pay-TV operators—to adjust their offerings, strengthen co-production agreements, and revise prices . The already delicate balance would be disrupted.
Market reactions and nerves in Hollywood
The mere leak of the negotiations had immediate effects on the stock market. Warner Bros. Discovery shares rose by nearly 3,7% in pre-market trading, while Netflix shares registered slight declines of around 0,6% in after-hours trading, reflecting both enthusiasm for the strategic potential and fear of financial and regulatory risks.
Specialized media outlets like Deadline and The Hollywood Reporter are calling it a veritable earthquake in Hollywood. For many industry professionals, the prospect of a studio founded in 1923 falling under the umbrella of a platform born in the digital age symbolizes a shift in eras: power is definitively moving from traditional studios to global streaming services.
Filmmakers' organizations and labor unions have called for caution and urged regulators and the US Congress to monitor the labor and creative impact of the merger. They fear that further cost-cutting, restructuring, and consolidation will ultimately affect jobs and the diversity of content produced, especially in medium-risk or more auteur-driven projects.
Meanwhile, Netflix executives are keeping a low profile. The company has avoided making detailed comments and simply reiterates that initiating exclusive talks does not guarantee a final agreement . Even if an agreement is reached, they point out that the actual closing could be delayed for many months due to competition reviews in various territories.
On the other side, Warner Bros. Discovery continues its restructuring and asset divestment strategy in an attempt to reduce debt and focus its business on areas with the greatest growth potential. The sale of studios and streaming services to Netflix would fit within this profound redesign of the group, although the magnitude of the change means that every step is being closely scrutinized by the industry.
While awaiting a final decision, Netflix's potential acquisition of Warner and HBO Max has become the biggest talking point in the audiovisual industry . If it goes through, it could create an entertainment giant with unprecedented power in the streaming sector, forcing rivals in the United States, Spain, and the rest of Europe to rethink their strategies. If it's blocked by regulations or internal disagreements, it will serve as the clearest reminder of how much the business has changed and how corporate actions increasingly shape what we see on our screens.
