ALBAWABA- Netflix has entered exclusive negotiations to acquire Warner Bros. Discovery in a landmark $40 billion deal that could redraw the global streaming map, the Financial Times reported Saturday.
The prospective takeover, valuing Warner Bros. Discovery well above its current $25 billion market cap, comes as content giants race to scale up amid fierce competition from Disney, Amazon, and Paramount Global.
Sources say talks began last month as Netflix sought to bolster its content arsenal and expand live sports offerings after slowing subscriber growth in key markets. For Warner Bros.
Discovery, saddled with $42 billion in debt from its 2022 merger, a sale would provide relief while leveraging its premium assets, including HBO’s prestige catalog, CNN, and the DC Comics universe.
A combined platform could surpass 300 million global subscribers, boosting ad-tier revenue and strengthening its negotiating power against Big Tech rivals. Negotiators are exploring a cash-and-stock deal, along with potential divestitures to navigate antitrust hurdles in the U.S. and EU.
Warner Bros.
Discovery CEO David Zaslav, under pressure from shareholders frustrated by streaming losses topping $5 billion annually, reportedly views the tie-up as a financial lifeline and a chance to accelerate AI-driven personalization across the merged platform.
Market reaction was mixed; Netflix shares slipped 2% in after-hours trading, while Warner Bros. Discovery jumped 8%, reflecting optimism about synergies but concern over integration risks.
The companies aim to finalize terms ahead of a possible Q1 2026 closing, an indication that the streaming industry is consolidating into a high-stakes race where only a few giants may survive.
