Netflix Inc. is in exclusive discussions to acquire Warner Bros. Discovery Inc.’s film and television studios, along with its HBO Max streaming service, Bloomberg reports. People familiar with the matter said Netflix is offering a $5 billion breakup fee should regulators block the transaction. The companies could announce a deal within days if talks proceed smoothly.

Warner Bros., currently valued at more than $60 billion, plans to complete the spinoff of cable networks including CNN, TBS and TNT before the sale closes. If finalised, the deal would unite Hollywood’s storied studios with the world’s leading paid streaming platform, representing a significant consolidation in the entertainment sector.

For Netflix, the acquisition would mark a major strategic shift. The streaming giant has built its market-leading position without owning a traditional content library, relying instead on licensed shows and a growing slate of original productions. The deal would give Netflix long-sought access to a vast content catalogue and production capabilities, potentially reshaping the competitive landscape.