Netflix, Warner Bros Discovery combo seen lowering costs for consumers, sources say

(Changes order of companies in paragraph 10)

By Milana Vinn and Dawn Chmielewski

NEW YORK, Dec 2 (Reuters) – Netflix’s proposed acquisition of Warner Bros Discovery’s studios and streaming unit is expected to reduce streaming costs for consumers by bundling Netflix and HBO Max, according to two people familiar with the proposal.

In recent talks with Warner Bros Discovery, Netflix said the potential combination of its streaming service with HBO Max would benefit consumers by lowering the cost of a bundled offering, the sources familiar with the discussions told Reuters. They requested anonymity to discuss confidential negotiations.

Netflix’s argument seeks to address potential regulatory concerns that combining one of the nation’s leading subscription video streaming services with a top