Netflix is advancing negotiations to acquire Warner Bros. Discovery in a deal estimated at about $59 billion, marking what could become one of the most consequential media mergers in years. The streaming leader has reportedly submitted a predominantly cash offer as Warner Bros. Discovery moves through the second phase of its formal sale process.
Sources say Netflix is working on a bridge loan worth tens of billions of dollars to fund the potential acquisition, which would add HBO, CNN, the Warner Bros. film studio, and Discovery’s unscripted catalog to its content empire. With more than 280 million global subscribers, the company is seeking to solidify its position as the dominant force in global entertainment.
Warner Bros. Discovery put itself up for sale in October after receiving multiple unsolicited proposals, shelving an earlier plan to split the business into separate streaming/studio and cable divisions. The company had initially been courted by Paramount, now under the control of the Ellison family following a high-profile takeover. Paramount’s CEO David Ellison made several bids before CEO David Zaslav initiated the broad auction.
According to people familiar with the discussions, other interested bidders include Comcast, parent of NBCUniversal, raising the stakes in what has become a competitive and high-profile fight for one of Hollywood’s most iconic studios.
Why Netflix Is Pursuing the Deal Now
Netflix’s interest signals its drive to fortify content ownership as streaming competition intensifies and production costs rise. Gaining control of HBO, Warner Bros. Studios, and Discovery’s extensive library would significantly expand Netflix’s premium content footprint while reducing licensing costs.
The acquisition would also secure franchises such as “Harry Potter,” “Batman,” and high-performing HBO originals – assets that could bolster subscriber retention and international growth.
Industry insiders note that the deal could dramatically accelerate Netflix’s shift from a streaming-first platform into a vertically integrated entertainment group rivaling Disney. As previously covered, Netflix has sought to expand its production capabilities amid rising content budgets across Hollywood.
However, the move is expected to face heavy regulatory examination. U.S. antitrust officials have signaled increased scrutiny of large media consolidations, and Netflix’s dominance in streaming makes the deal particularly sensitive. Analysts say approvals may hinge on whether regulators believe the merger could restrict theatrical releases or reduce consumer choice.
High-profile industry figures have already voiced concerns. Director James Cameron recently said such a takeover would be “a disaster,” arguing that Netflix’s strategy could further reduce the number of major films receiving traditional cinema releases.
What the Proposed Merger Means for Hollywood and Investors
If completed, the transaction would reshape the U.S. media landscape by combining the world’s largest streaming platform with one of Hollywood’s most storied content libraries. Analysts say the deal could accelerate consolidation across the entertainment sector, pressuring rivals to scale through acquisitions or partnerships.
For Warner Bros. Discovery, the sale offers a path out of years of financial strain tied to debt, shifting cable revenues, and expensive streaming investments. The company’s market value has hovered near $59 billion as it navigates structural industry challenges.
Investors in both companies are watching closely, as the transaction could reshape long-term earnings profiles. Netflix would take on significant financing obligations but could unlock powerful cost efficiencies through content integration. Warner Bros. Discovery shareholders, meanwhile, could see a premium if a bidding contest develops between Netflix, Comcast, and other potential suitors.
More details are expected in the coming days as talks advance and financing structures finalize.
