Updated | Netflix has emerged as the winner of the battle to take over at least part of Warner Bros Discovery in a deal that could eventually mean the end of HBO Max as a standalone service.
Multiple sources in the US confirmed overnight from Thursday into Friday (UK time) that Comcast and Paramount Skydance had failed in their bids for all or part of Warner Bros Discovery (WBD). At the time, it was revealed that Netflix was now in exclusive talks with the company.
By lunchtime Friday UK time, just before stock markets started trading, Netflix confirmed a deal worth $82.7 billion. That’s worth almost $28 per share.
Deal doesn’t include all of WBD
As originally intended by WBD, the legacy linear TV business and Discovery+ will be spun off into a separate business. This business also includes WBD’s portfolio of free-to-air channels in the UK, including Quest, DMAX and Food Network. It also includes CNN.
Prior to the auction taking place, WBD had planned to split itself in two from the middle of next year.
That split will now happen, with legacy linear TV channels including Quest, CNN, DMAX and Food Network in the UK spun off into a separate company called “Discovery Global”.
Following the conclusion of the spin-off, Netflix will then take over the rest of the business, which includes the Warner Bros TV and film studio business and HBO Max. Netflix will also gain control of WBD’s current international sports business (outside of the USA). This includes WBD’s current share in TNT Sports UK and Eurosport in continental Europe.
HBO Max content to be integrated into Netflix
In a press release announcing the deal, Netflix says that by adding HBO and HBO Max programming, “Netflix members will have even more high-quality titles from which to choose”.
However, it also indicated access to its expanded content library could come at a cost. Netflix said the integration of HBO content would also allow it to “optimise its plans for consumers, enhancing viewing options and expanding access to content”.
HBO Max is currently still due to complete rollout in Europe in early 2026. This is not expected to change, as the Netflix takeover isn’t expected to complete until summer 2026.
Netflix has signalled that in the interim, HBO Max will continue as a standalone service.
WBD’s Discovery+ will continue to exist as the streaming service of the spun-off Discovery Global.
In the UK, current plans are to integrate TNT Sports content into HBO Max. However, Netflix looks set to become a major sports streaming destination and home of the Olympics in Europe by 2028.
Paramount calls the lawyers
Paramount Skydance claimed Netflix’s involvement in the auction for WBD was “unfair”. Lawyers said it had a “credible basis to believe that the sales process has been tainted by management conflicts.” Paramount had wanted to acquire all of WBD.
WBD strongly disputes this claim.
Cinema groups concerned
A deal will give Netflix access to the entire Warner Bros library and intellectual property. However, film makers and cinema groups are concerned any deal will reduce the pipeline of movies released to cinemas. They also fear Netflix will shorten the window of time cinemas get to show remaining releases exclusively. According to Variety, Netflix is proposing to cut the theatrical release window to just two weeks.
Fewer regulatory hurdles in the UK
From a regulatory point of view, Netflix is less likely to face punitive action in the UK over any takeover compared to Paramount and Comcast.
A Comcast takeover of WBD would have brought Sky Sports and TNT Sports in the UK under one roof. A Paramount takeover, which involved the full WBD business, would have brought numerous free-to-air and pay TV channels together to dominate UK broadcasting.
By: Marc Thornham | Updated: 14:30