Netflix and Warner Bros. Discovery agree to massive $82 billion deal — here's how it could impact HBO Max

Netflix and HBO Max, two of the biggest streaming services, are set to merge. In a press release earlier this morning (Dec. 5), the streaming giant announced that it had struck a deal to acquire Warner Bros. Discovery (WBD) for $82.7 billion. This was expected after it was revealed yesterday that the two companies had entered exclusive talks (h/t Bloomberg [paywall]), but it's still a stunning development.

This deal gives Netflix a veritable cornucopia of intellectual property to work with if it goes through. No longer will it need to hire the Russo brothers to direct "The Electric State"; now it can just have them do the next Batman movie. Now that Millie Bobby Brown is done with "Stranger Things," she could find herself cast in a future season of the HBO "Harry Potter" show or a "Game of Thrones" spinoff.

Now, here's the wrinkle with this deal: It's going to take some time before it goes through. And that's if it even goes through at all.

Earlier this year, WBD revealed that it would split itself into two. One company would be called Warner Bros. and comprise Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, HBO and the streaming service HBO Max, along with these brands' existing film and television libraries. The second company would be called Discovery Global and will be made up of WBD's existing linear TV networks, such as CNN, TNT Sports, Discovery, Discovery Plus and Bleacher Report (B/R).

That split is still happening, with the latest reports suggesting it will happen in Q3 2026 (h/t The Hollywood Reporter). Netflix is only acquiring the Warner Bros. part of WBD, and the deal will not become official until Discovery Global is spun off and, of course, once it passes regulatory approval. That could be a tougher task than expected, given that U.S. President Donald Trump holds a lot of influence over Paramount Skydance and its owner, David Ellison, and might want to force WBD to go to a company he can exert some level of control over, rather than Netflix.

Of course, it makes no sense for Netflix to acquire CNN anyway. Frankly, Netflix probably doesn't want to be in the cable business. It wants the IP that WBD can provide, and it certainly wants HBO Max.

Malcolm McMillan

Malcolm has been with Tom's Guide since 2022, and has been covering the latest in streaming shows and movies since 2023. He's worried that this Netflix deal will lead to fewer movies in theaters.

How does this deal impact HBO Max?

When WBD announced it was splitting in two, I suggested that Discovery Plus and Discovery content on HBO Max would split from HBO Max as well.

Now that Netflix is set to own HBO and HBO Max but none of the Discovery Global networks or library, I think it's almost certain that HBO Max will continue to lose Discovery Global content as time goes on. There are likely some contractual obligations, and Netflix isn't afraid to spend on content, but I expect a lot of the Discovery shows don't fit with Netflix's brand or plans.

That said, while Discovery Global content might leave HBO Max, HBO Max might now be joining the Netflix platform, and not just the company.

Reuters reported earlier this week that this deal, which we still don't know many of the details of, would include plans to reduce streaming costs by bundling Netflix and HBO Max. This seems to be, in part, part of a strategy to assuage the concerns of regulators, who are certain to scrutinize a high-profile merger of this nature.

But "bundling" is a bit nebulous a term. Likely, it means that Netflix, as a separate streaming service, would be available to purchase alongside HBO Max, as a second separate streaming service. This would be akin to the current HBO Max/Disney Plus, Hulu bundle package you can get, which allows you to subscribe to all three services for a lower price — and could disappear once Netflix owns HBO.

Still, it's not impossible that bundle really means combining, like what Disney Plus is currently doing with Hulu, bringing the latter into the former's app while still requiring you to subscribe to both if you want the full Disney Plus and Hulu content libraries.

I predict that we'll start with the former, but as time goes on, I think Netflix will try and integrate the HBO Max library into the Netflix app. For starters, Netflix is the better app, so from a quality standpoint, it'd improve the viewing experience. But I think Netflix also wants to be Netflix, not Netflix Warner Bros. While, at first, the two brands will be run with some separation, I'll be shocked if in the not-too-distant future, it's all just Netflix, with Warner Bros. and HBO existing as studios that produce shows and movies for the Netflix app.

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