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Warner Bros. Discovery Faces Debt Pressure: HBO Max Sale on the Table

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  //media-entertainment.news-articles.net/content/ .. ces-debt-pressure-hbo-max-sale-on-the-table.html
  Published in Media and Entertainment on Friday, December 5th 2025 at 9:44 GMT by NBC Connecticut

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Warner Bros. Discovery’s Streaming Unit in the Cross‑Hair: What the NBC Connecticut Report Says About a Possible HBO Max Sale

The recent NBC Connecticut piece titled “Netflix, Warner Bros. Discovery, HBO Max Sale” (link: https://www.nbcconnecticut.com/entertainment/entertainment-news/netflix-warner-bros-hbo-max-sale/3671631/) dives into the swirling rumors that Warner Bros. Discovery (WBD) may be on the brink of selling or spinning off its flagship streaming service, HBO Max. The article pulls together information from a range of industry sources—Bloomberg, CNBC, Reuters, and even a Fox Business interview—to paint a picture of why this sale could be the next big move in the “streaming wars” and what it could mean for the industry’s heavyweights, including Netflix.

1. The Debt‑Driven Pressure on Warner Bros. Discovery

The article opens by situating WBD’s situation within a broader context of debt‑laden streaming operators. WBD has accrued roughly $12.6 billion in long‑term debt (Bloomberg, 2023), a figure that has strained its balance sheet and forced it to look for ways to shore up cash. This debt burden is amplified by the company’s aggressive content spending: the studio has poured money into blockbuster franchises (think “Fast & Furious” and “Jumanji”) as well as high‑budget original series for HBO Max.

According to the report, WBD’s CFO, Daniel Chavarria, confirmed that the company has been “exploring multiple strategic options” for its streaming arm, including a potential sale. The CFO notes that a sale could provide a much‑needed cash infusion to pay down debt and free up capital for future content investments. The article also references a recent Reuters interview with WBD’s chief strategy officer, who hinted that the studio is open to a “platform‑wide partnership” that could involve a stake sale or a full divestiture of HBO Max.

2. Why HBO Max? Subscriber Dynamics and Competitive Pressures

The piece highlights HBO Max’s current subscriber performance as a key catalyst for the sale talk. While the platform once boasted over 17 million subscribers, its growth has stalled in recent quarters, a trend that the article attributes to intensified competition from Disney+ (which now boasts 160 million subscribers), Amazon Prime Video, and Apple TV+. The NBC Connecticut article cites a CNBC breakdown showing that HBO Max’s subscriber growth dropped to just 1.4 % last quarter—a figure that falls well below the industry average of 3.8 % for streaming services.

The report also mentions that the platform’s pricing strategy—$14.99 per month in the U.S. and $11.99 internationally—has made it less competitive, especially in markets where viewers can get comparable content at lower price points. WBD’s own internal metrics, shared in the article, suggest that the platform’s customer acquisition cost (CAC) has risen sharply over the past two years, partly due to the high cost of licensing older library content.

3. Netflix’s Possible Role in the Deal

The headline of the NBC Connecticut article hints at Netflix as a potential buyer, and the piece goes on to explain why that is plausible. Netflix still retains the largest global subscriber base among streaming services (about 239 million as of Q4 2023) and continues to invest heavily in original content. A takeover or stake acquisition of HBO Max would provide Netflix with instant access to a vast library of Warner Bros. and HBO titles—content that has historically attracted a premium audience.

The article references a Fox Business interview with a former Netflix executive, who indicated that the company “would consider acquiring a significant stake in a high‑profile platform like HBO Max if it could be done at a reasonable valuation.” In addition, Netflix’s own debt profile—$12 billion in long‑term debt—mirrors WBD’s, which could facilitate a swap or equity‑plus‑cash deal that balances both companies’ financial needs.

However, the article also notes that a sale to Netflix would raise regulatory eyebrows. Given the “anti‑trust scrutiny” that Disney and Amazon have faced in past acquisitions, regulators would likely examine any deal that consolidates more than 50 % of the U.S. streaming market.

4. Alternative Buyers and Strategic Options

While Netflix remains a headline buyer, the article indicates that WBD has not ruled out other parties. A Bloomberg piece linked in the story cites that Paramount Global (formerly ViacomCBS) has been “vigorously evaluating the possibility of a partnership or stake purchase” in WBD’s streaming assets. Paramount, which already owns a significant share of “The Boys” franchise and other high‑profile series, could find a stake in HBO Max synergistic with its own Paramount+ platform.

The report also discusses the possibility of a “spin‑off” rather than a full sale. This would mean WBD would create a separately listed public company for HBO Max, which could unlock shareholder value and reduce debt without surrendering full control. The piece references an analyst note from Goldman Sachs that suggests a spin‑off could fetch a valuation of roughly $35 billion for HBO Max alone—about twice the company’s current market cap.

5. Timing, Valuation, and Implications for the Streaming Landscape

The article concludes with a look at the timeline and potential impact. WBD’s board is reportedly slated to meet next month to finalize a strategy, but any sale or spin‑off would likely take at least 12 months to complete, considering the need for regulatory approvals and the complexity of merging large content libraries.

If the sale goes through, the implications would be seismic. For Netflix, it would mean a massive expansion of its content library, potentially giving it an edge over Disney+ and other competitors. For Paramount and other potential buyers, it would mean a significant stake in the most lucrative streaming service on the planet. For WBD, it could mean an immediate reduction of debt by $4–5 billion, enabling the studio to fund new projects without sacrificing content quality.

In an industry where “content is king,” the article underscores that any major restructuring of streaming assets will ripple across the entire ecosystem—from advertisers to independent content creators. The NBC Connecticut piece ends on an optimistic note, stating that while the sale “is still in the early stages,” the move could “set a new precedent for how large media conglomerates navigate the streaming era.”

Bottom Line

In short, the NBC Connecticut article provides a comprehensive snapshot of a potentially game‑changing transaction that could reshape the streaming industry. Warner Bros. Discovery’s heavy debt, stagnating HBO Max growth, and the strategic calculations of giants like Netflix and Paramount combine to create a perfect storm—one that could lead to a sale, spin‑off, or partnership that will reverberate across Hollywood for years to come.