425: Netflix-WBD Deal: Public Overwhelmingly Backs Merger

A recent survey indicates overwhelming public support for the proposed Netflix-Warner Bros. Discovery combination, with Americans preferring Netflix as the buyer.

Summary

• A Morning Consult survey conducted on December 8-9, 2025, among 700 U.S. adults, found overwhelming support for the Netflix-Warner Bros. Discovery combination.
• Americans support the deal by nearly a 3-to-1 margin and prefer Netflix as the buyer by more than 2-to-1 over Paramount in a multi-bidder scenario.
• Nearly 6 in 10 Netflix, HBO Max, and Paramount+ subscribers support the proposed combination.
• Over half of Americans surveyed believe Netflix should receive regulatory approval for the deal.
• 44% of Americans believe the combination will increase the variety of shows and movies available, compared to 15% who do not.
• 47% of Americans are more likely to support the deal due to anticipated improved streaming quality from Netflix's technology combined with Warner Bros. content, versus 10% who are less likely.
• Key factors exciting subscribers include Warner Bros. movies (36%), HBO and Netflix originals together (33%), better streaming technology (29%), and bigger budget shows and movies (29%).
• Netflix enjoys the highest favorability of any entertainment company tested, with 74% favorable (43% very favorable and 31% somewhat favorable).

Sentiment

Score: 9

Explanation: The filing is a highly promotional document presenting overwhelmingly positive public sentiment for a proposed merger, indicating strong market acceptance and potential for future success if the deal closes.

Positives

• Overwhelming public support for the proposed Netflix-Warner Bros. Discovery deal, with nearly a 3-to-1 margin.
• Strong preference for Netflix as the buyer, exceeding Paramount by more than 2-to-1 in a multi-bidder scenario.
• High subscriber endorsement, with nearly 60% of Netflix, HBO Max, and Paramount+ subscribers supporting the combination.
• A majority of Americans (over 50%) believe the deal should receive regulatory approval.
• Significant anticipation of increased content variety (44% of Americans) and improved streaming quality (47% of Americans) as benefits of the combination.
• Netflix maintains the highest favorability among tested entertainment companies, with a 74% favorable rating.

Risks

• Failure to complete the proposed transaction on anticipated terms and timing, including obtaining stockholder and regulatory approvals.
• Challenges in completing the separation of WBD's Discovery Global business and Warner Bros. business.
• Unforeseen liabilities, future capital expenditures, and impacts on revenues, expenses, earnings, and synergies.
• Failure to realize the anticipated benefits of the proposed transaction, potentially due to delays or integration issues.
• Inability of Netflix and WBD to effectively implement their business strategies post-merger.
• Adverse changes in consumer viewing trends.
• Potential litigation related to the proposed transaction against Netflix, WBD, or their respective directors.
• Disruptions from the proposed transaction harming Netflix's or WBD's business, including current plans and operations.
• Challenges in retaining and hiring key personnel for both companies.
• Potential adverse reactions or changes to business relationships resulting from the announcement, pendency, or completion of the transaction.
• Uncertainty regarding the long-term value of WBD's common stock.
• Impacts from legislative, regulatory, and economic developments affecting both businesses.
• General economic and market developments and conditions.
• Evolving legal, regulatory, and tax regimes under which Netflix and WBD operate.
• Potential business uncertainty, including changes to existing business relationships, during the pendency of the proposed transaction.
• Restrictions during the pendency of the proposed transaction that may impact Netflix's or WBD's ability to pursue certain business opportunities or strategic transactions.
• Failure to receive the approval of the stockholders of WBD.

Future Outlook

The filing highlights the expected date of closing of the proposed transaction and its potential benefits, including increased content variety, choice, and convenience, along with improved streaming quality. It emphasizes that these are forward-looking statements based on current expectations and projections, subject to various risks and uncertainties that could cause actual results to differ materially.

Industry Context

The proposed combination of Netflix and Warner Bros. Discovery would create a formidable entity in the global streaming and entertainment landscape. By merging Netflix's technological prowess and extensive subscriber base with WBD's vast content library, including HBO and Warner Bros. franchises, the combined company aims to offer an unparalleled entertainment destination. The survey results indicate a strong public appetite for such a consolidation, with consumers favoring Netflix over competitors like Paramount in a multi-bidder scenario, suggesting a potential shift in industry dynamics towards integrated, high-quality content offerings.

Comparison to Industry Standards

• Americans prefer Netflix over Paramount in a multi-bidder scenario for the Warner Bros. Discovery assets.
• Netflix enjoys the highest favorability (74%) among all entertainment companies tested in the survey.
• The combination is expected to bring together 'Blockbuster HBO and Warner Bros. prestige storytelling' with 'New releases and binge-worthy full seasons' and 'Big Netflix originals like Stranger Things', positioning it strongly against existing content libraries.

Stakeholder Impact

• Shareholders (Netflix & WBD): Potential for long-term value creation from synergies and expanded content offerings, but also risks related to deal completion, integration, and WBD stock value uncertainty.
• Customers (Subscribers): Anticipated benefits include increased variety of shows/movies, improved streaming quality, and convenience of combined content libraries (Warner Bros. movies, HBO, Netflix originals).
• Employees (Netflix & WBD): Risks related to retention and hiring of key personnel, and potential business disruption during the transaction.
• Regulatory Authorities: Need for regulatory approval is a key factor for deal completion.

Next Steps

• Netflix intends to file a registration statement on Form S-4, which will include a prospectus and a proxy statement for WBD's stockholders.
• WBD intends to file its proxy statement with the SEC.
• WBD intends to file a registration statement for a newly formed subsidiary that will be spun off prior to the closing of the proposed transaction.
• The definitive proxy statement (if and when available) will be mailed to stockholders of WBD.
• Obtaining stockholder and regulatory approvals for the proposed transaction.
• Completing the separation of WBD's Discovery Global business and Warner Bros. business.

Key Dates

Recommendation

The filing highlights overwhelming public and subscriber support for the proposed Netflix-Warner Bros. Discovery combination, indicating strong market acceptance and potential for significant synergy. The perceived benefits, such as increased content variety, improved streaming quality, and the combination of premium content libraries, suggest a compelling value proposition for consumers. While regulatory approval and integration risks exist, the positive sentiment and strategic rationale presented make this a highly attractive long-term investment opportunity for Netflix, assuming the deal closes.

Keywords

Netflix, Warner Bros. Discovery, WBD, Merger, Acquisition, Streaming, Entertainment, Content, Regulatory Approval, Public Opinion, Survey, Media