A sweeping realignment in video entertainment is underway that could redraw how millions of U.S. households watch television. Netflix has entered exclusive negotiations to buy Warner Bros. Streaming & Studios in a proposed $82.7 billion pre-debt deal, while Warner Bros. Discovery prepares to carve off its traditional cable and sports channels into a separate company. Together, the moves would split a major media conglomerate in two, concentrate a vast library of premium programming under Netflix, and leave a standalone cable-focused firm to battle for relevance in a post-cable era.
The Netflix–Warner Bros. Deal
Under terms announced December 5, 2025, Netflix is negotiating to acquire Warner Bros. Streaming & Studios for about $82.7 billion before debt, or roughly $72 billion including debt. If completed, it would be the largest transaction yet in the streaming sector and the first time a digital-first platform takes over a major Hollywood studio.
The unit on the block includes HBO and the Max streaming service, Warner Bros. film and television studios, and associated intellectual property such as DC Comics. The acquisition would hand Netflix control of one of the deepest catalogs in entertainment, from long-running HBO series to major film franchises, and concentrate a large share of high-end scripted programming on a single subscription platform.
As part of the restructuring, these streaming and studio operations are being separated from Warner Bros. Discovery’s cable and sports channels. The traditional networks will be placed in a different company so the streaming and studio assets can be sold.
Creating Discovery Global
Warner Bros. Discovery chief executive David Zaslav has been working on this split since mid-2025. The plan calls for the cable and sports portfolio to be spun into an independent firm called Discovery Global, expected to launch as a standalone, publicly traded company by the third quarter of 2026.
Discovery Global would control CNN, TNT Sports, TBS, TNT, Discovery, TLC, HGTV, Food Network, Cartoon Network, Adult Swim, DMAX, Discovery+, Bleacher Report, and numerous international free-to-air outlets. Stripped of HBO, Max, and Warner Bros. studios, it will focus on news, live sports, and lifestyle and reality programming.
The new company will retain a wide mix of sports rights, from March Madness and NASCAR to MLB, NHL, the College Football Playoff, the Olympics, the UEFA Champions League, and the Premier League. But it will lose the streaming brands and prestige dramas that once helped Warner Bros. Discovery negotiate favorable carriage terms with cable and satellite providers.
Subscriber Shifts and Household Disruption
The proposed sale would trigger wide-ranging changes for subscribers. Inside the U.S., an estimated 10–15 million people who pay for HBO or Max are likely to see their access shifted into Netflix’s ecosystem. Their current plans could be folded into Netflix bundles or converted into new premium tiers, requiring users to change apps, billing arrangements, or both.
Key questions remain unresolved: whether HBO Max will continue operating under its own brand inside Netflix’s corporate structure, how long legacy HBO cable add-ons will remain, and what options will be offered to those who do not currently subscribe to Netflix. The integration window is expected to span 12–18 months, leaving customers and providers bracing for a period of uncertainty.
At the same time, tens of millions of households that receive CNN, TNT Sports, TBS, and Discovery-branded networks via cable or satellite could face renegotiated channel lineups, new pricing, or even the loss of familiar bundles. Distributors have warned that the breakup of Warner Bros. Discovery’s combined portfolio may lead to higher carriage fees for the remaining channels or increase the risk of blackouts during contract disputes.
Sports fans will navigate an even more fragmented environment. In 2025, NBC/Comcast took over NBA broadcast and streaming rights previously held by TNT in a deal valued at about $27 billion over 11 years, as part of a broader 11-year, $76 billion NBA package shared by NBC, Amazon, and Disney’s ESPN/ABC. This removed NBA basketball from Warner Bros. Discovery just as its sports brands move into Discovery Global, leaving the new company with important but more scattered properties and no single flagship league of similar scale.
Industry Power and Regulatory Scrutiny
The Netflix negotiations unfold amid accelerating consolidation in both scripted entertainment and sports. Comcast/NBCUniversal has committed more than $1 billion over more than a decade to Yellowstone creator Taylor Sheridan, bolstering Peacock’s lineup and underscoring how top creative talent is clustering around a few large streaming-oriented players. Netflix, if it absorbs HBO and Warner Bros. studios, would emerge with unmatched control over both library and new productions, from superhero and fantasy franchises to long-running series.
That concentration has drawn political attention. President Donald Trump has said publicly that the Netflix–Warner Bros. Discovery transaction “could be a problem” on competition grounds and confirmed that he met Netflix co-CEO Ted Sarandos at the White House to discuss the deal. The administration has signaled “heavy skepticism,” suggesting regulators may seek conditions, demand divestitures, or attempt to block the merger if they conclude it would unduly concentrate market power.
Analysts also point to execution risks: potential customer backlash if HBO viewers are pushed into different plans, confusion during platform migration, overlapping titles across services, and possible price increases. Paramount Global has indicated it may challenge the deal, and European competition authorities are expected to review it as well.
A Turning Point for Cable and Streaming
Behind the financial headlines lies a deeper question about the future of cable-era television. Traditional HBO packages sold through cable and satellite systems, along with standalone Max subscriptions, could be substantially reconfigured or eventually wound down if Netflix decides to consolidate branding and technology under its own service. Netflix has indicated it may initially keep HBO Max operating separately, but has not laid out a long-term plan.
Discovery Global, for its part, will enter the market without a flagship streaming service and without the prestige dramas that once anchored its parent company’s positioning. Cable and satellite providers will be forced to renegotiate with a slimmer but still essential supplier of news, lifestyle, and sports channels, even as more consumers shift to on-demand services.
If regulators approve the deal and the corporate split is completed by late 2026, the long-running division between cable bundles and online platforms would give way to a market dominated by a few integrated giants. For viewers, that could mean fewer large competitors, more power in the hands of Netflix and a small circle of rivals, and a media landscape where the rules of the cable era are finally replaced by a new, streaming-centered order whose full consequences are still emerging.
Sources
Netflix official announcement, December 5, 2025
Warner Bros. Discovery corporate filings, June-December 2025
Reuters media coverage, December 2025
BBC News coverage, December 2025
CNN Business coverage, December 2025
Variety entertainment reporting, December 2025
Deadline industry news, December 2025