SOLD: Warner Bros Productions

Quick summary

Netflix has agreed to acquire Warner Bros. Discovery’s film and television studios and streaming business in a transaction that focuses on intellectual property, studios, HBO, and HBO Max — but it does not include Warner’s cable networks (like CNN, TNT, HGTV and others). Those cable networks are being spun off as a separate public company called Discovery Global. [Netflix]

What Netflix is buying (and what it is not)

The deal centers on Warner Bros.’s creative assets — movie and TV studios, DC and other franchises, and HBO/HBO Max streaming — which strengthen Netflix’s content library and production capability. Cable channels, including CNN, are explicitly excluded from the sale and will be part of the separate company created by Warner Bros. Discovery. [Netflix]

Why the cable networks were left out and became Discovery Global

• Strategic focus: Netflix’s core business is streaming and owned content that can drive subscriptions and global streaming revenue. Traditional cable networks have different business models (carriage fees, ad sales, local/regulatory complexities) that don’t fit Netflix’s streaming-first strategy. [Netflix]

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• Planned corporate split: Warner Bros. Discovery announced earlier in 2025 that it would separate into two companies — a Streaming & Studios company (the assets Netflix is buying) and a separate company for cable and linear networks (now referred to as Discovery Global). Spinning off the cable networks was already part of WBD’s plan before the Netflix agreement. [Warner Bros. Discovery]
• Regulatory and valuation issues: Cable networks and news channels carry different regulatory, political, and valuation considerations; excluding them simplifies what Netflix must get past regulators and makes a cleaner content/streaming acquisition. Several news outlets note Netflix focused on studios/streaming while leaving cable to be reorganized separately. [Los Angeles Times]

What this means for CNN

CNN is not part of the Netflix transaction. Instead, CNN and other traditional networks will go with the spun-off Discovery Global company. Some analysts say this could be positive for CNN because the network may be able to reset under a smaller, focused owner; others point to uncertainty during the spin-off period while budgets and leadership are reorganized. Reporting stresses that CNN being excluded was deliberate — not an accidental omission — because Netflix wanted studios and streaming, not linear cable channels. [Forbes]

Bigger picture and competitor activity

The deal has attracted competing bids and regulatory scrutiny. In the days after Netflix’s agreement was announced, other media companies (including a hostile offer from Paramount) moved in, showing how big media assets can trigger rival bids and political attention. That competition and regulatory review could change the shape of any final deal. [Financial Times]

How to keep tracking this story

If you want to stay updated, watch these sources and signals:

• Official company releases — Netflix and Warner Bros. Discovery press pages for any formal announcements or clarifications. [Netflix]
• Major news outlets — reporting from The Washington Post, Reuters, AP, and industry outlets (Variety, Hollywood Reporter) for deal details and regulatory coverage. [The Washington Post]
• Regulatory filings and agency actions — filings with the SEC, and reviews or statements from antitrust regulators (U.S. DOJ, FTC, and foreign regulators) are the clearest signs of how the deal will be examined and whether assets must be trimmed or spun off.
• Shareholder votes and competing bids — proxy materials and shareholder notices will show whether rival offers (or break-up fees) change the deal. [Financial Times]