HBO's about to be owned by Netflix!? Breaking Down the Netflix / Warner Brothers $72Bn M&A Deal

Dec 5, 2025

Kristen and Jen dissect the jaw-dropping $72 billion Netflix–Warner Bros. deal. Netflix will snag HBO, Max, and Warner Bros. studios but leave cable networks behind. They delve into the bidding war dynamics, exploring why Netflix triumphed amidst competition from Paramount and Comcast. The pair also clarify complex M&A terms like 'collar' and discuss the implications of the deal on the streaming landscape. Will HBO maintain its renowned quality under Netflix? Tune in for insightful analysis and engaging conversation!

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INSIGHT

Deal Structure And Valuation

Netflix agreed to buy Warner Bros. Discovery's studio and streaming assets for $27.75 per share, split between cash and stock.
The transaction values the deal at about $72B equity and $82.7B transaction value, reflecting only the acquired assets.

INSIGHT

Bidding War And Strategic Scope

Multiple bidders pursued Warner Bros. with different scopes: Paramount/Skydance bid for the whole company, Comcast and Netflix for streaming/studio assets only.
Strategic fit, regulatory paths, and behind‑the‑scenes campaigns influenced who could win the deal.

INSIGHT

Spin‑Off Separates Cable From Streaming

Warner Bros. will spin off its cable networks before closing so Netflix only acquires streaming and studio assets.
Shareholders will retain ownership in the spun-off cable company while selling the HBO/studio piece to Netflix.

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This week Kristen and Jen break down the blockbuster Netflix–Warner Bros. deal. Netflix has agreed to acquire Warner Bros. Discovery’s studio and streaming assets — HBO, Max, Warner Bros. Studios, and its iconic content library — for $27.75 per share in a cash and stock deal. But before the deal closes, Warner Bros. will spin off its cable networks (CNN, TBS, Discovery Channel, and more) into a separate company. That means Netflix is only buying the good stuff — no legacy cable attached.

This episode dives into the complex mechanics behind the transaction: how the spin-off works, what a "collar" means in M&A land, and why this $72 billion equity offer came with a surprisingly low premium. Also: there was a whole bidding war behind the scenes. Paramount / Skydance wanted to buy the entire company. Comcast and Netflix were just after the streaming assets and studio business. Why did Netflix win? What happens next? And will this deal reshape the future of streaming as we know it? This episode is a full M&A teach-in wrapped in an entertainment headline — and yes, we also talk about Industry coming back soon.

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