Instead of just making movies on its own, Netflix Inc. (NASDAQ: NFLX) may buy Warner Bros. Discovery Inc. (NASDAQ: WBD). Warner Bros. is one of the oldest and most historic studios in the world. Netflix would obtain streaming services that would considerably increase its number of subscribers.
Netflix has been paying to create its own content for a while now. The company said it would spend $18 billion this year on programming. Among the most notable are “The Squid Game”, “Wednesday” and “Stranger Things”.
Warner Bros. Discovery has already increased its market cap due to the chances of it being sold. Its market capitalization is $53 billion. Paramount Skydance Corp. (NASDAQ:PSKY) has been on the list of potential buyers. However, its size is dwarfed by Netflix, which has a market capitalization of $461 billion.
HBO Max and Paramount+, Warner Bros. Discovery’s streaming services, have a combined subscriber count of 30 million. Netflix’s total exceeds 300 million. It’s impossible to do the math on what increased subscriber numbers would mean for Netflix’s bottom line. However, it would increase its place as the world’s leading streaming company.
The deal would also give it an advantage against a huge new streaming service. YouTube Premium and Alphabet Inc.’s (NASDAQ: GOOGL) Google One have a paid subscriber base of 300 million. Alphabet’s holdings are growing rapidly. Disney and YouTube are currently in a distribution dispute.
Warner Bros. has one of the largest film libraries in the world. It also has several winners this year, including “F1” and “Superman.”
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