In a landmark move poised to shake the foundations of Hollywood, Netflix has struck a $72 billion deal to acquire Warner Bros. Discovery, merging two entertainment powerhouses in what could become the biggest realignment of the streaming era.
The acquisition, if approved by regulators, brings together Netflix’s global reach and streaming dominance with Warner Bros.’ storied history, including blockbuster franchises like Harry Potter, the DC Universe, and acclaimed content from HBO and HBO Max. It’s a match that could permanently alter the landscape of film, television, and how audiences consume content.
The deal is structured as a mix of cash and stock, valuing Warner at $27.75 per share and giving the overall transaction an enterprise value of $82.7 billion, including debt. Crucially, it includes Warner’s film and TV assets but excludes cable networks such as CNN and Discovery, which will form a new public entity called Discovery Global.
Industry insiders and analysts anticipate major regulatory pushback, particularly on antitrust grounds. Critics, including cinema trade groups and writers’ unions, argue that the merger threatens theatrical releases, creative jobs, and viewer choice. Cinema United, representing over 50,000 global movie screens, labeled the deal an “unprecedented threat,” while the Writers Guild of America called for the merger to be blocked outright.
Despite the opposition, Netflix remains confident, touting the move as a way to give viewers more of what they love and to expand its theatrical footprint through Warner’s existing obligations. Netflix co-CEO Ted Sarandos called the merger an opportunity to deliver richer stories on a broader scale, while Warner’s CEO David Zaslav emphasized the cultural impact of combining legacies.
The move follows Warner Bros. Discovery’s earlier decision to split off its cable operations as more consumers move away from traditional TV. Meanwhile, the streaming wars intensify: Netflix’s new acquisition will either remain a separate platform or be bundled with HBO Max—potentially offering price relief to consumers tired of juggling multiple subscriptions.
Paramount and Comcast were also in the running, with Paramount even offering to buy Warner in its entirety, cable and all. But Warner ultimately chose Netflix, setting the stage for a fierce battle not just in Hollywood but also in Washington. Lawmakers from both sides of the aisle have already raised red flags about consolidation and its implications for competition, content diversity, and local media economies.
As Warner prepares to separate its cable and streaming assets, and Netflix waits for regulatory approval, one thing is clear: this merger isn’t just a business deal. It’s a defining moment in the future of entertainment.