Netflix Clinches Warner Bros. Deal, Explicitly Excluding CNN

Netflix is set to acquire Warner Bros. in a landmark $82.7 billion deal, a merger that promises to dramatically reshape the global streaming and entertainment landscape. Crucially, the deal is structured to ensure that Netflix obtains the content engine of the studio—the content library, streaming operations, and production assets—while explicitly avoiding the inclusion of the Warner Bros. Discovery’s news and cable network assets, such as CNN and TNT Sports.

The complex transaction, which values Warner Bros. at $82.7 billion ($72 billion in equity), hinges on the successful spin-off of the cable networks division, Discovery Global. This separation, which includes news organizations like CNN, is anticipated to be completed in the third quarter of 2026. Netflix is effectively waiting for the studios and streaming business to be legally separated from the television networks before it completes its acquisition, underscoring its focus purely on entertainment content.

This strategic move comes after months of speculation, during which rival bidders like Paramount Skydance reportedly expressed interest in acquiring the entirety of Warner Bros., including its cable networks. However, for Netflix, the motivation is clear: gaining control of the studio’s vast creative resources and 102-year-old catalog, which includes global franchises like Harry Potter and classic films like Casablanca.

Analysts immediately highlighted the strategic value of the content acquisition. Forrester VP Mike Proulx said the deal "changes the calculus of the streaming wars," noting that it solidifies Netflix as the "Goliath of streaming." The merged company’s increased scale is expected to significantly boost Netflix's content pipeline, reduce "hit-rate risk," and strengthen its position in negotiations with advertisers.

Addressing investor concerns about the mixed track record of large media mergers, Netflix Co-CEO Greg Peters voiced confidence. He stated that the acquisition would succeed because of the company's deep understanding of the entertainment business. Peters assured shareholders and subscribers that the deal "will accelerate our business for decades to come," enabling Netflix to attract and maintain more subscribers and drive incremental revenue, all while strategically limiting its focus to pure entertainment assets.

Obviously, the approval process will take months and even if Discovery Global becomes a separate company by next summer, many of its cable networks, including CNN, could again be put up for sale.

Stay tuned…