Netflix Eyes Warner Bros Discovery: HBO Max Takeover Rumours Explained

Insatiable! Netflix Wants to Gobble Up Warner Bros Discovery (HBO Max)

1. The Shock Headline That Rocked Hollywood

On 30 October 2025 Reuters reported that Netflix has hired bankers to “explore a bid” for Warner Bros Discovery’s core studio and streaming assets, including HBO Max . WBD shares leapt 9 % in pre-market trading as investors digested the possibility of Netflix owning everything from House of the Dragon to the entire Harry Potter film library .

2. Why Now? Warner Bros Discovery Is on the Block

WBD officially confirmed it is “reviewing strategic alternatives” after rejecting a $60 billion approach from Paramount Skydance as too low . CEO David Zaslav told investors the company is open to either:

• selling the whole group, or

• splitting Warner Bros (film & TV studios + HBO Max) from Discovery Global (cable networks) and selling the studio piecemeal .

  Netflix is said to favour the second option—buying only the content engine, not the declining cable networks .

3. What Netflix Would Actually Get

• HBO Max brand & app (110 M global subs)

• Warner Bros film & TV studio – DC Comics, Harry Potter, Lord of the Rings, Mad Max, Conjuring universe

• HBO originals – Game of Thrones, Succession, The Last of Us, Euphoria

• Castle Rock, New Line, Turner libraries – 100 000+ hours of content

• Production lots & sound stages – Leavesden, Burbank, Atlanta

4. The Price Tag

Analysts value the Warner Bros studio + HBO Max at $70-75 billion once you strip out debt-laden cable assets . Netflix ended Q3 2025 with $29 billion in cash and short-term investments, meaning it would need to:

• raise fresh debt,

• issue new Netflix shares, or

• form a consortium with private-equity partners.

5. Regulatory Hurdles

Any deal would face scrutiny on both sides of the Atlantic:

• U.S. DOJ – vertical integration (studio + streamer) is less contentious than horizontal, but size still matters.

• EU Commission – could demand divestment of European sports rights (e.g., HBO Max’s UEFA Champions League).

• UK CMA – might worry about Netflix owning Studios Leavesden, the UK’s largest film lot.

6. Strategic Upside for Netflix

• Instant IP ownership – no more licensing DC films from WBD; Netflix controls the vault.

• Global tent-pole pipeline – Harry Potter spin-offs, Game of Thrones prequels, DC cinematic universe.

• Cost savings – analysts estimate $3-4 billion annual synergies from merged marketing and tech stacks .

• Ad-tier rocket fuel – HBO prestige content behind Netflix’s cheaper ad plan could accelerate AVOD growth.

7. Risks & Skepticism

• Debt binge – Netflix has spent years repairing its balance sheet; a mega-deal could bring back the 2018 cash-burn ghosts.

• Cultural clash – HBO’s boutique, creator-first ethos vs Netflix’s data-driven volume model.

• Consumer confusion – would HBO Max app survive or disappear inside the red Netflix interface?

8. What Would Happen to HBO Max Subscribers?

Industry insiders expect a “soft merger”:

• year 1 – HBO Max becomes a premium hub inside Netflix (like Star on Disney+).

• year 2 – standalone HBO Max app is phased out; all content migrates to Netflix.

• pricing – likely bundled tiers: Netflix Standard with ads + HBO hub for $15.99, below today’s combined cost .

9. Market Fallout

• Disney+ loses its only serious prestige rival.

• Apple TV+ could accelerate live-sports acquisitions to compete.

• Amazon might counter-bid for remaining Discovery cable assets to bolster Thursday Night Football.

10. Bottom Line

Netflix’s appetite knows no bounds: owning Warner Bros Discovery would create a content empire rivalled only by Disney, giving the streamer permanent control of Gotham, Hogwarts and Westeros. Whether regulators—and Netflix shareholders—have the stomach for a $70 billion bite remains to be seen.

Sources

Reuters – Netflix taps bank to explore bid for Warner Bros Discovery – 30 Oct 2025

Fast Company – What Hollywood’s next potential merger means for streaming – 24 Oct 2025

LinkedIn / Charbel Chaaya – Netflix–WBD acquisition analysis – 31 Oct 2025

MovieWeb – Netflix Is Threatening To Buy One of the Biggest Studios in Hollywood – 21 Oct 2025