In a move that has sent shockwaves through the entertainment world, Netflix has officially agreed to acquire the film and television studios of Warner Bros.
Discovery, along with the HBO Max streaming service and the iconic HBO brand, in a deal valued at an enormous $82.7 billion enterprise value (with $72 billion in equity). Announced on December 5, 2025, this transaction marks one of the largest media consolidations in history and positions Netflix as an unparalleled powerhouse, gaining control over legendary franchises like Harry Potter, Batman and the DC Universe, Game of Thrones, and classics such as Friends and The Big Bang Theory.
The deal emerged from an intense bidding war that pitted Netflix against heavyweights like David Ellison's newly merged Paramount Skydance and Comcast. Netflix's winning offer, a mix of cash and stock totaling around $27.75 per share for WBD holders ($23.25 in cash plus Netflix shares), outpaced rivals and included a substantial breakup fee to signal commitment.
Paramount, which had aggressively pursued the entire Warner Bros. Discovery entity - including its cable networks - accused WBD leadership of favoring Netflix in an "unfair" process, but ultimately came up short. The acquisition will proceed after WBD completes its planned spin-off of its linear TV networks (including CNN, TNT, and Discovery channels) into a separate company called Discovery Global, now expected in the third quarter of 2026. Closing is anticipated in late 2026 or early 2027, pending regulatory approvals and shareholder votes.
Netflix co-CEO Ted Sarandos hailed the merger as a union of "pioneering entertainment businesses," emphasizing that it combines Netflix's global streaming innovation with Warner Bros.' century-old legacy of storytelling. Company statements promise to "maintain Warner Bros.' current operations, including theatrical releases," aiming to deliver "more captivating stories" to audiences worldwide while projecting $2-3 billion in annual cost synergies.
Yet, not everyone in Hollywood is celebrating. A group of prominent filmmakers, identifying themselves anonymously as "concerned feature film producers," circulated an open letter to U.S. Congress expressing grave alarm over the deal.
They warned that Netflix's dominance could devastate the theatrical exhibition industry, arguing the streamer might prioritize its subscription model by shortening or eliminating cinema windows for Warner Bros. films - effectively viewing time spent in theaters as "time not spent on their platform."
The letter's signers explained their anonymity not as cowardice but as protection against retaliation, given Netflix's immense influence as a major buyer and distributor of talent.
Organizations like the Directors Guild of America and theater owners have echoed these fears, predicting reduced big-screen releases and a "noose around the theatrical marketplace" that could trigger an "economic and institutional crisis" for cinemas and independent filmmakers.
Investor reaction has been mixed as well. While WBD shares surged on the news, Netflix's stock dipped in response to concerns over the massive debt load, integration challenges, and potential antitrust hurdles.
Wall Street analysts have noted that the deal could face intense scrutiny from regulators, given Netflix's already commanding position in streaming - boasting over 300 million subscribers - and the risk of further consolidating content creation and distribution.
This acquisition caps Netflix's remarkable evolution from a DVD rental service to the undisputed leader of the streaming era, now poised to own one of Hollywood's most storied studios.
For fans, it means iconic titles from HBO's prestige dramas to Warner's blockbuster IPs could soon stream alongside Netflix originals like Stranger Things and Squid Game.
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But for the broader industry, it raises profound questions about the future of movie theaters, creative competition, and whether one company can hold too much sway over global entertainment. As antitrust reviews loom and protests mount, 2026 promises to be a pivotal - and contentious - year for Hollywood's new reality.
