Sources tell TheWrap that Netflix now enters exclusive talks with Warner Bros. Discovery, with a potential deal including a $5 billion breakup fee should regulatory authorities block the transaction.

The streaming giant has reportedly offered $30 per share, valuing the studio and streaming division at roughly $70-75 billion, well above Warner Bros. Discovery’s current market value of around $60 billion. 

The assets include HBO Max and iconic franchises such as Harry Potter and DC Comics. Netflix’s offer outstripped competing bids from Paramount and Comcast, while early interest had also come from Amazon and Apple. 

Paramount has formally lodged a complaint, accusing Warner Bros. Discovery of favouring Netflix and neglecting shareholder interests.

This acquisition follows Warner Bros. Discovery’s June 2025 announcement to split the company into two public entities: one for studios and streaming, the other for cable and global networks. Netflix’s bid targets only the studio and streaming side, leaving the cable division untouched.

Regulatory approval will be necessary. The U.S. Department of Justice has already indicated concerns over potential consolidation in streaming and film production. Former officials warn the deal could trigger a multi-year antitrust review, while political attention adds another layer of complexity.

If the acquisition goes ahead, Netflix would gain HBO Max, Warner Bros. studio, and some of Hollywood’s most valuable intellectual properties. It would also mark the company’s first major move into theatrical film distribution, a segment it has traditionally avoided. 

Analysts say this could dramatically affect the entertainment industry, forcing competitors such as Disney, Apple, and Amazon to recalibrate their strategies in response.

In the first quarter of 2025, Netflix delivered a 13% year-on-year revenue jump to $10.54 billion. Operating income shot up by 27% to $3.3 billion, and earnings per share landed at $6.61, comfortably above expectations. These are not numbers from a company having issues. These are numbers from a company betting big—and winning—for now.

And they’re not depending on monthly subscriptions anymore. The company’s lower-priced, ad-supported tier now makes up 55% of new sign-ups in markets where it’s available. This is no minor footnote; it’s a central part of the next chapter. 

The goal is to double global ad revenue and rake in $9 billion by 2030. According to analysts at BofA Global Research, “while advertising is a small portion of the business today, the longer-term prospects are notably robust… while investments in ad-tech capabilities should drive healthy growth for years to come.”

The streaming giant has also launched its in-house ad tech platform in the U.S. and is preparing for wider global expansion. There’s no more hiding behind subscriber counts either. From this year, the company has stopped reporting them altogether, instead shifting the spotlight to harder financial metrics like revenue and profit margins. In other words, Netflix wants to be judged not by how many people are watching—but how much it’s earning.

We can’t ignore the context: a global economy still uneasy, trade tensions flaring up, and consumer spending under pressure. But Co-CEO Greg Peters said no major behavioural shifts from customers so far. The platform’s value—for the price—is holding firm.

In his words, “Even in a global recession scenario, Netflix is likely to be highly resilient given the price-to-value of the service remains very attractive.” That wasn’t just spin. The market believed it.

That confidence seems to be shared across Wall Street. No fewer than seven brokerages raised their price targets for Netflix after the results. The median target now stands at $1,147.50, based on LSEG data.

Meanwhile, competitors like Disney and Warner Bros Discovery slipped slightly in premarket trading.  And with a reaffirmed 2025 revenue forecast of up to $44.5 billion and a projected 15% growth in the next quarter, it’s clear the company is not coasting, but doubling down.

There’s one more number that matters: 29%. That’s the operating margin Netflix wants to hit by the end of the year. If it gets there, it won’t just be the world’s leading streamer—it’ll be one of the sharpest performers in the media business, full stop.