Netflix–Warner Bros Mega Deal: Will One App Now Control Hollywood’s Biggest Franchises?

Entertainment

-Madhuri Adnal

Netflix
is
set
to
buy
Warner
Brothers
in
a
$72
billion
deal
that
could
reshape
global
entertainment.
The
agreement
would
hand
the
streaming
platform
control
of
Warner
Bros
Discovery’s
TV,
film
studios
and
streaming
arm,
while
raising
questions
about
competition,
cinema
releases
and
what
it
all
means
for
audiences
worldwide.

Under
the
plan
announced
on
Friday,
5
December,
Warner
Bros
Discovery
would
split
into
two
listed
entities.
Netflix
would
acquire
the
Warner-focused
company,
covering
studios
and
streaming.
The
second
entity,
Discovery
Global,
would
retain
US
news
and
lifestyle
channels,
including
CNN,
Discovery,
TBS
and
TNT,
keeping
those
operations
separate
from
the
Netflix
transaction.

Netflix
Warner
Bros
deal:
what
is
included
and
who
missed
out

Warner
Bros
is
one
of
Hollywood’s
oldest
studios
and
owns
major
franchises
such
as
Harry
Potter,
the
DC
superhero
films,
Game
of
Thrones,
Succession
and
The
White
Lotus,
along
with
the
HBO
Max
streaming
service.
Netflix
beat
competitors
Comcast
and
Paramount
Skydance
to
secure
the
agreement,
emerging
as
the
preferred
bidder
for
Warner
Bros
Discovery’s
entertainment
assets.

Netflix
said
that
“this
acquisition
will
improve
our
offering
and
accelerate
our
business
for
decades
to
come.” Co-chief
executive
Ted
Sarandos
explained
that
combining
Warner
Bros
titles
with
Netflix’s
existing
catalogue
would
boost
choice
for
subscribers
and
build
on
the
legacy
of
the
studio,
which
is
viewed
as
one
of
the
United
States’
remaining
“big
five”
film
companies.

Netflix
Warner
Bros
deal:
statements
from
Netflix
leadership

Netflix
will
buy
Warner
Bros
Discovery’s
TV,
film
studios
and
streaming
division.
Reuters
reported
that
the
streaming
company
sees
the
acquisition
as
a
long-term
investment
in
content
scale.
Co-chief
executive
Ted
Sarandos
said
that
by
integrating
the
two
catalogues,
Netflix
can
offer
a
wider
mix
of
shows
and
films
to
viewers
around
the
world.

Sarandos
said
that
by
combining
the
library
of
Warner
Bros
shows
and
movies
with
the
streaming
platform’s
diverse
range
of
content,
“we
can
give
audiences
more
of
what
they
love
and
help
define
the
next
century
of
storytelling”.
“Warner
Bros
have
defined
the
last
century
of
entertainment,
and
together
we
can
define
the
next
one,”
he
added,
stressing
how
important
the
studio’s
history
is
to
the
proposed
partnership.

Netflix
Warner
Bros
deal:
impact
on
subscribers
and
pricing

The
proposed
merger
still
needs
clearance
from
competition
regulators,
but
if
approved,
Netflix
could
gain
access
to
HBO’s
128
million
subscribers.
These
viewers
could
be
added,
fully
or
partly,
to
Netflix’s
existing
base
of
more
than
300
million
subscribers
worldwide,
according
to
BBC
reporting,
potentially
giving
the
platform
a
scale
unmatched
by
other
streaming
rivals.

“Netflix
is
already
the
biggest
streaming
service
and
now
you
add
HBO
Max
to
that
and
it
becomes
arguably
untouchable,”
Mike
Proulx,
vice
president
at
research
firm
Forrester,
told
the
British
broadcaster.
The
combined
library
would
contain
around
a
century
of
Warner
Bros
productions
alongside
Netflix
originals,
although
it
is
not
yet
known
whether
HBO
Max
and
Netflix
will
merge
into
one
app.

Netflix
has
said
that
the
inclusion
of
HBO
and
HBO
Max
programming
will
give
its
members
“even
more
high-quality
titles
from
which
to
choose”
and
“optimise
its
plans
for
consumers”.
Co-chief
executive
Greg
Peters
stated
that
Netflix
considered
the
HBO
brand
important
for
audiences,
but
added:
“We
think
it’s
quite
early
to
get
into
the
specifics
of
how
we’re
going
to
tailor
this
offering
for
consumers.”

Netflix
Warner
Bros
deal:
what
viewers
may
experience

Many
subscribers
are
asking
whether
the
Netflix
purchase
will
change
subscription
prices.
The
company
expects
to
complete
the
transaction
within
the
next
year
to
18
months.
Once
libraries
are
combined,
households
might
find
they
no
longer
need
separate
subscriptions
to
Netflix
and
HBO
Max,
which
could
influence
how
people
judge
value
for
money.

Analysts
told
BBC
that
Netflix’s
much
larger
scale
could
allow
the
company
to
raise
prices.
At
the
same
time,
if
customers
feel
they
are
replacing
two
services
with
one,
they
may
see
overall
costs
fall.
Pricing
decisions
are
likely
to
depend
on
how
Netflix
structures
any
bundles
and
whether
HBO
Max
remains
distinct
or
is
absorbed
into
existing
plans.

Netflix
Warner
Bros
deal:
cinemas,
theatrical
windows
and
viewing
habits

Another
concern
is
what
the
agreement
could
mean
for
theatrical
releases
of
Warner
Bros
films.
For
at
least
the
next
year,
until
regulators
decide
on
the
merger,
cinema
schedules
are
expected
to
run
as
planned.
Warner
Bros
movies
should
continue
to
appear
in
theatres
worldwide
while
the
transaction
moves
through
approval
processes.

Netflix
co-CEO
Sarandos
said
Friday
that
they
will
“continue
to
support”
a
“life
cycle
that
starts
in
the
movie
theatre”
for
Warner
Bros
movies.
Netflix
already
releases
selected
titles
in
cinemas,
usually
for
a
limited
period
before
they
appear
on
the
platform.
This
pattern
may
guide
how
the
company
approaches
future
Warner
Bros
releases,
though
detailed
strategies
have
not
yet
been
disclosed.

Proulx
told
BBC
the
future
is
“all-streaming”.
“With
this
deal
it
is
official:
legacy
media
is
ending.”
Some
within
the
industry
are
sceptical
about
the
long-term
role
of
cinemas
under
Netflix
control,
as
Sarandos
has
previously
described
traditional
movie-going
as
an
“outdated
concept”,
raising
doubts
about
how
much
priority
theatrical
runs
will
receive.

Netflix
Warner
Bros
deal:
key
figures
and
financial
commitments

The
transaction
is
valued
at
$72
billion,
which
Netflix
has
translated
as
around
Rs
6.48
lakh
crore.
As
part
of
the
terms,
Netflix
must
pay
Warner
Brothers
$5.8
billion
if
the
deal
collapses.
This
breakup
fee
underlines
Netflix’s
confidence
in
closing
the
acquisition
despite
regulatory
and
political
hurdles
in
the
United
States
and
Europe.

Netflix
Warner
Bros
deal:
regulatory
tests
and
political
pressure

The
mega-deal
will
be
closely
scrutinised
by
competition
regulators
in
both
the
US
and
Europe.
Rebecca
Haw
Allensworth,
a
professor
at
Vanderbilt
Law
School
in
the
United
States,
told
BBC
that
deals
of
this
size
are
usually
a
“clear-cut
case
for
a
challenge”,
with
enforcers
often
seeking
concessions
or
tough
conditions
to
protect
consumer
interests.

An
anonymous
senior
Trump
administration
official
told
CNBC
the
US
government
is
viewing
the
deal
with
“heavy
skepticism.”
Sarandos
said
Netflix,
which
has
to
pay
Warner
Brothers
$5.8
billion
if
the
deal
falls
apart,
was
“highly
confident”
it
would
win
approval.
The
company
may
need
to
offer
remedies
to
regulators
worried
about
dominance
in
streaming
and
content
production.

Meanwhile,
Paramount
Skydance
may
make
another
bid
to
acquire
Warner
Brothers
Discovery
and
try
to
convince
shareholders
that
it
could
offer
a
better
alternative.
The
US
president,
who
has
earlier
praised
Paramount
Skydance’s
owners,
the
tech
billionaire
and
Republican
donor
Larry
Ellison
and
his
son
David,
could
create
roadblocks
for
the
Netflix
deal
through
public
comments
or
regulatory
influence.

Netflix
Warner
Bros
deal:
pushback
from
unions
and
cinema
groups

Many
in
the
film
and
television
industry
have
criticised
the
proposed
merger.
The
Writers
Guild
of
America’s
East
and
West
branches
issued
a
joint
statement
on
Friday
saying
“this
merger
must
be
blocked”.
The
unions
argue
that
greater
consolidation
leaves
workers
with
fewer
employers
and
less
leverage
over
pay
and
working
conditions.

“The
outcome
would
eliminate
jobs,
push
down
wages,
worsen
conditions
for
all
entertainment
workers,
raise
prices
for
consumers,
and
reduce
the
volume
and
diversity
of
content
for
all
viewers,”
it
said.
The
statement
reflects
deeper
worries
among
writers
that
large
streaming
groups
could
cut
commissioning
budgets
once
they
control
more
rights
and
platforms.

Hollywood’s
actors
union,
SAG-AFTRA,
said
the
deal
“raises
many
serious
questions”
that
the
leadership
expects
to
be
answered.
It
concluded
its
statement
without
taking
a
position
yet.
“Any
decision
about
SAG-AFTRA’s
position
on
this
transaction
will
be
made
with
the
best
interests
of
SAG-AFTRA
members
as
the
standard
and
following
a
complete
and
thorough
analysis
of
the
details
of
the
deal,
with
particular
focus
on
jobs
and
production
commitments,”
it
said.

SAG-AFTRA
Statement
Regarding
Proposed
Netflix/Warner
Bros.
Transaction
pic.twitter.com/nexNtv9Pj0—
SAG-AFTRA
(@sagaftra)
December
5,
2025
STORY
CONTINUES
BELOW
THIS
AD
Michael
O’Leary,
chief
executive
of
trade
organisation
Cinema
United,
warned
that
the
merger
posed
“an
unprecedented
threat”
to
the
global
cinema
business.
“The
negative
impact
of
this
acquisition
will
impact
theatres
from
the
biggest
circuits
to
one-screen
independents
in
small
towns
in
the
United
States
and
around
the
world,”
he
said.

For
audiences,
the
Netflix–Warner
Bros
agreement
promises
a
vast
combined
library
and
possible
changes
to
how
and
where
they
watch
major
films
and
series.
For
workers,
cinemas
and
rival
media
companies,
it
raises
concerns
about
concentration
of
power,
job
security
and
pricing,
all
of
which
now
depend
on
how
regulators,
politicians
and
shareholders
respond
over
the
next
18
months.