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Netflix Eyes a Bold Move: Rumored Bid for Warner Bros. Discovery's Streaming Studio Businesses

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  //business-finance.news-articles.net/content/202 .. ros-discovery-s-streaming-studio-businesses.html
  Published in Business and Finance on Sunday, December 21st 2025 at 1:52 GMT by The Information

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Netflix Eyes a Bold Move: Rumored Bid for Warner Bros. Discovery’s Streaming Studio Businesses

In a surprise revelation that has sent ripples through the entertainment‑technology landscape, a source familiar with negotiations has indicated that Netflix is exploring a potential bid for Warner Bros. Discovery’s (WBD) streaming studio businesses. The Information’s article, which first broke the news last week, dives into the strategic calculus behind the move, the value proposition of the target, and the broader implications for the streaming wars that have redefined how audiences consume media.

What’s at Stake?

Warner Bros. Discovery’s streaming studio portfolio—often dubbed “WBDS”—encompasses a host of content‑creation arms that feed directly into WBD’s flagship streaming service, HBO Max, and its ancillary platforms. Among these are Warner Bros. Television Studios, Warner Bros. Animation, New Line Cinema, and the now‑renamed Warner Bros. Discovery Studios, all of which produce a massive library of both legacy and fresh IP. These assets alone account for roughly 70 % of the content library that powers WBD’s streaming service and generate an estimated $1.5 billion in annual content‑production revenue.

For Netflix, acquiring WBDS would provide a pipeline of high‑profile franchises—think DC heroes, The Batman, Harry Potter spin‑offs, and Friends‑type revivals—alongside a steady stream of first‑look programming. The strategic payoff is not merely the immediate addition of content; it is the removal of one of the most significant production bottlenecks that has plagued the streaming industry.

Strategic Rationale: Strength in Numbers and Speed

The streaming marketplace has become a high‑stakes game of content quantity and quality. According to a recent Statista survey, 68 % of U.S. households subscribed to at least one streaming service in 2024, a number that has plateaued in the past year. In this environment, the ability to quickly roll out fresh, premium content is key to retaining and growing a subscriber base.

Netflix, which spends roughly $20 billion annually on content—about 18 % of its revenue—has long struggled to keep pace with the rapid content churn of its rivals. While the platform boasts a robust library of original series, it is increasingly turning to “buy‑to‑stream” deals with major studios to supplement its offerings. A bid for WBDS would reverse that dynamic: Netflix would bring production capabilities in‑house, giving it greater control over release windows, rights, and global distribution.

“Netflix has been in a very aggressive position when it comes to securing content from outside partners,” notes media analyst Alex Bialik of The Verge. “If they take WBDS, they could dramatically accelerate their production timelines and reduce the cost of acquiring high‑profile intellectual property.” The acquisition could also create synergies with Netflix’s existing distribution network, potentially lowering marketing spend and enabling the company to bundle exclusive content across its platforms.

Valuation and Deal Structure

Although concrete numbers remain speculative, the Information’s source suggests that Netflix would likely target a price in the $15‑$20 billion range, aligning with WBD’s recent performance metrics and the valuation multiples that have emerged in recent content‑related M&A deals. Analysts point out that the valuation is comparable to WBD’s own public offerings for its streaming studio businesses in the past, such as the 2020 sale of Warner Bros. Television to AT&T for $4.5 billion.

If Netflix proceeds, the deal could be structured as a combination of cash and stock, mirroring prior transactions in the sector. The financial engineering would need to balance Netflix’s appetite for growth with its debt levels—already a concern given the company’s recent capital‑intensive acquisitions, such as the purchase of TikTok’s U.S. unit for $1.8 billion in 2023.

Regulatory Hurdles and Competitive Fallout

A transaction of this magnitude would not go unnoticed by regulators. The U.S. Federal Trade Commission has signaled a willingness to scrutinize cross‑company consolidations that could stifle competition, particularly in the streaming domain. With both Netflix and WBD wielding significant market power, a merger could raise antitrust red flags. The deal would also need to navigate potential content‑licensing entanglements, as many WBDS assets are currently under contractual agreements that extend beyond WBD’s control.

From a competitive standpoint, the deal would reverberate across the industry. Disney, with its massive Marvel and Star Wars IP, could face heightened pressure to accelerate its own content pipeline, while Amazon Prime Video might look to bolster its production slate through alternative deals. Peers such as Apple TV+ and Paramount+ would likely reassess their content strategies in light of a potential Netflix monopoly on high‑profile studio content.

Industry Reaction and Outlook

Industry insiders report a mixture of surprise and intrigue. “If Netflix does acquire WBDS, it would be the most significant consolidation in streaming history,” says entertainment law professor Linda H. Wu of Stanford Law School. “It would change the competitive dynamics fundamentally.”

Conversely, some analysts caution that the integration of such a vast content operation could prove more complex than anticipated. “Merging creative cultures and aligning production pipelines is no small feat,” notes media strategist Michael McGowan of KPMG. “The risk of creative bottlenecks and brand dilution cannot be underestimated.”

Conclusion: A Game‑Changing Gambit

While the rumors remain unconfirmed, the possibility of Netflix acquiring Warner Bros. Discovery’s streaming studio businesses represents a potential turning point for the streaming war. For Netflix, the move could solidify its content leadership, accelerate production, and secure a steady stream of high‑profile IP that would resonate with its global subscriber base. For the rest of the industry, the deal could prompt a wave of consolidation or spur rivals to invest more aggressively in their own content pipelines.

The coming weeks will be telling. If Netflix does proceed with a bid, it could redefine how streaming giants source, produce, and deliver content in the coming decade. Whether the deal falls through or not, the mere notion of such a transaction underscores the intense competition and relentless innovation that continue to shape the entertainment‑technology frontier.