From Peacock to HBO Max: Comcast (CMCSA.US) Aims to Build a "Streaming Empire" with Warner Bros. Discovery (WBD.US) as Key Piece

Comcast (CMCSA.US), the U.S. telecommunications and entertainment giant, is reportedly exploring a merger between its NBCUniversal division and Hollywood powerhouse Warner Bros. Discovery (WBD.US). According to unnamed sources familiar with the matter, Comcast submitted a revised acquisition offer on Monday for select assets of Warner Bros. Discovery, which would grant it control of the combined entity.

If finalized, the deal would provide Warner Bros. Discovery shareholders with a mix of cash and stock in the new company. Philadelphia-based Comcast, one of three major bidders in the second round of offers, aims to create a dominant entertainment conglomerate by integrating NBC’s TV networks, film studios, and theme parks with Warner Bros. Discovery’s assets.

A key driver of the merger is the potential consolidation of NBC’s Peacock and Warner’s HBO Max streaming platforms. Analysts suggest this could propel the combined service into the top tier of global streaming, rivaling Netflix and Disney+. The merger may also unlock billions in annual cost synergies from overlapping markets, technology, and content licensing.

Comcast’s strategic push aligns with its plan to spin off cable networks like MSNBC and CNBC under the "Versant" brand by early next year. Similarly, Warner Bros. Discovery plans to separate its cable channels, including CNN and TNT, into a standalone entity named Discovery Global.

Sources indicate Comcast has offered Warner Bros. Discovery CEO David Zaslav a senior leadership role in the merged company. Warner Bros. Discovery entered the sale process last month after receiving unsolicited bids, including from Paramount Skydance Corp. and Netflix (NFLX), which also submitted revised offers this week.

Netflix’s bid is reportedly cash-heavy, backed by bridge financing, while Paramount proposed an all-cash offer funded partly by Apollo Global Management and Middle Eastern investors. Unlike other bidders, Paramount seeks Warner’s cable channels.

Regulatory hurdles are expected given the scale of the potential merger. Notably, Netflix has assured Warner Bros. Discovery’s management it will continue theatrical releases for its films.

Following the news, Comcast shares rose 1.7% to $27.02, while Warner Bros. Discovery gained 2.8% to $24.53. Bloomberg Intelligence analyst Geetha Ranganathan noted the deal could double NBCU’s EBITDA and generate $4–5 billion in synergies.