There will be no CNN for Netflix, as the streaming giant sticks to what it knows best: entertainment. Netflix is preparing an all-cash offer for Warner Bros Discovery’s studio and streaming businesses, valued at $83 billion, but explicitly excluding the news network and other linear channels.
This exclusion is a key part of the deal structure. WBD’s linear networks, including CNN, the Cartoon Network, and Discovery, will be spun off into a separate company. Netflix’s cash offer focuses solely on the high-growth assets of HBO and Warner Bros Pictures. This strategy is designed to speed up the deal and defeat a hostile bid from Paramount Skydance.
Paramount has offered $108.4 billion for the entire company, but the bid relies on debt and has been rejected by WBD’s board. Paramount is now trying to replace the board. Netflix’s targeted approach avoids the complexities of the news business while securing the content it craves.
The deal has raised concerns about market dominance in entertainment. Politicians warn that a Netflix-WBD merger would control nearly half of the streaming market. However, the exclusion of news assets may help simplify the regulatory argument.
The market supports the focused strategy. WBD shares rose 1.6% on the news, suggesting that investors appreciate Netflix’s discipline. By leaving CNN behind, Netflix is doubling down on its identity as an entertainment powerhouse.