Netflix is in exclusive negotiations to acquire Warner Bros. Discovery’s film and television studio, along with its HBO Max streaming service.

The move follows a weeks-long bidding battle for the assets, with competitors including Paramount, Skydance, and Comcast, according to VARIETY.

Paramount Skydance, led by newly appointed CEO David Ellison, had aimed to acquire all of Warner Bros. Discovery in an all-cash offer, while Netflix and Comcast focused their bids solely on the studio and streaming divisions.

The development represents a surprising shift for Netflix, which has historically shied away from major investments in traditional Hollywood assets.

Co-CEOs Ted Sarandos and Greg Peters have consistently maintained that Netflix’s growth did not depend on owning an extensive content library.

Yet, the opportunity to acquire Warner Bros.’ extensive film and TV catalog along with the iconic HBO brand proved too compelling to ignore. Any potential deal would likely face a challenging path to regulatory approval, particularly given the uncertainties surrounding the Trump administration.