A landmark deal reshaping entertainment
Netflix plans to acquire the film and streaming divisions of Warner Bros Discovery for 72 billion dollars. The company wins a fierce bidding battle against Comcast and Paramount Skydance. Warner Bros owns major franchises such as Harry Potter and Game of Thrones and runs the streaming service HBO Max. The merger would create a powerful entertainment leader, but regulators must still approve the deal. Industry groups warn the move could harm workers and viewers.
Ted Sarandos, co-chief executive of Netflix, says the company is confident about regulatory approval. He says merging the content libraries will offer audiences more stories they enjoy. He argues that Warner Bros defined entertainment for the past century, and both companies can shape the next.
Greg Peters, the other co-chief executive, says HBO remains a key brand for viewers. He adds it is too early to reveal details on how the combined service will operate.
Savings, strategy, and content plans
Netflix expects two to three billion dollars in savings. Most cuts will come from overlapping support and technology teams. Warner Bros will continue releasing films in cinemas. Its television studio can still produce shows for outside partners. Netflix will continue producing exclusive content for its own platform.
Sarandos calls the agreement a milestone for both companies. He says some shareholders may feel surprised, but he sees a rare opportunity to strengthen Netflix for decades. David Zaslav, chief executive of Warner Bros, says the merger unites two of the world’s strongest storytelling companies. He says the partnership will ensure audiences enjoy powerful stories for generations.
The offer values each Warner Bros share at 27.75 dollars. The enterprise value reaches roughly 82.7 billion dollars. The equity value totals 72 billion dollars. Both boards approve the deal unanimously.
Industry concerns grow
The Writers Guild of America urges regulators to block the merger. It warns of job losses, lower wages, and weaker working conditions. It also warns that viewers may face higher prices and reduced content variety. Michael O’Leary of Cinema United calls the deal a threat to cinemas worldwide. He fears harm to both large chains and small independent theatres.
Netflix will finalize the acquisition once Warner Bros completes its planned split. Discovery Global will operate the networks division, including major US news and sports channels and several European free-to-air networks. TNT Sports International will remain with the studios and streaming division sold to Netflix.
Hollywood braces for transformation
Analyst Paolo Pescatore says the deal highlights Netflix’s drive to dominate global streaming. He warns that merging two large companies may create major operational challenges. Paramount had previously tried to buy the full Warner Bros company, but the offer was rejected before Netflix stepped in.
Tom Harrington of Enders Analysis says approval would reshape Hollywood dramatically. He expects significant cuts in film and TV output from the merged company. He predicts resistance from unions and key industry groups. He also warns that subscription prices could rise for many households.
Danni Hewson of AJ Bell says Netflix addresses some concerns by pledging to keep Warner Bros films in cinemas. She says fast regulatory approval could unlock major savings. She adds that regulators will closely watch Netflix’s pricing power in the coming months.
