Netflix has entered exclusive talks to buy Warner Bros. Discovery’s studio and streaming business which includes HBO and the Warner Bros. movie studio.
The talks follow several rounds of bidding in which WDB was also being courted by Comcast, owners of Sky, Peacock and Universal Studios, and Paramount.
Any deal will need regulatory approval in the US and other key markets but, if successful, would give Netflix ownership of major TV and film franchises such Superman, Batman, Harry Potter and Game Of Thrones.
It would also take ownership of WBD’s 50% share of the UK TNT Sports channels which are currently owned by a joint venture with BT.
Like Netflix, Comcast was only interested in buying the studio and streaming business, which is being formed as part of the recently announced demerger, while Paramount was seeking to take control of the entire business.
HBO Max, the WBD’s flagship streaming service, is currently expanding its global roll-out with launches in the UK, Germany and Italy all set for early next year.
In the long-term it’s likely that Netflix would move to merge the service with its own, creating one of the industry’s biggest content libraries and cementing its lead in the streaming wars.