Netflix sinks on report that buying Warner Bros. wouldn’t drastically boost its market share since most subscribers already have HBO Max

Investors appear to have a bit more faith in Netflix’s ability to win the bidding war for Warner Bros. Discovery — they’re just not sure if they like the idea.

Netflix shares fell 6% on Wednesday morning following a Reuters report citing sources familiar with acquisition discussions. According to the report, Netflix (which is said to be targeting WBD’s streaming assets and studio business, but not its networks) would bundle Netflix and HBO Max, reducing costs for consumers. Sources noted that most Netflix subscribers already subscribe to HBO Max, so the merger isn’t expected to dramatically boost the streamer’s market share.

If you’re lowering costs for customers and not getting many more of them, it’s not clear how such an acquisition would add much value.

The other two primary bidders in the WBD auction, Paramount Skydance and Comcast, have also reportedly freshened up their pitches. Paramount is said to have upped its offer with help from Middle Eastern sovereign wealth funds, while Comcast wants to combine the TV and film departments of NBCUniversal with HBO and Warner — marrying Peacock with HBO Max.

Analysts believe the bidding war could propel Warner Bros. Discovery’s value to around $70 billion, significantly above its valuation before the acquisition talks began.