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 competitive bidding battle against Comcast and Paramount Skydance. Warner Bros owns blockbuster franchises including Harry Potter and Game of Thrones and operates HBO Max. The merger would create a dominant entertainment powerhouse, but regulators must still approve it. Industry groups warn the deal could negatively affect workers and viewers.
Ted Sarandos, co-chief executive of Netflix, says the company is confident it will secure approval. He says merging the content libraries will provide audiences with more stories they love. He adds that Warner Bros shaped entertainment for the last century, and both companies can shape the next.
Greg Peters, the other co-chief, says HBO remains a vital brand for viewers. He notes it is too early to reveal the full structure of the combined service.
Cost savings and content strategy
Netflix expects two to three billion dollars in savings. Most reductions will target 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 maintain its exclusive content strategy for its own platform.
Sarandos calls the deal a milestone for both companies. He says some shareholders may be 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 adds the partnership will ensure audiences enjoy compelling stories for generations.
The offer values each Warner Bros share at 27.75 dollars. The enterprise value totals roughly 82.7 billion dollars. The equity value stands at 72 billion dollars. Both boards approve the agreement unanimously.
Union and industry backlash
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 less variety. Michael O’Leary of Cinema United calls the deal a threat to cinemas worldwide. He fears harm to both major chains and small independent theatres.
Netflix will complete the takeover once Warner Bros finalizes its planned corporate 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 prepares for dramatic change
Analyst Paolo Pescatore says the deal demonstrates Netflix’s ambition to dominate global streaming. He warns that merging two large companies may create operational challenges. Paramount had previously attempted to acquire the full Warner Bros company, but the offer was rejected before Netflix intervened.
Tom Harrington of Enders Analysis says approval would reshape Hollywood dramatically. He expects significant cuts in film and television output from the merged company. He predicts resistance from unions and industry groups. He also warns that subscription prices may rise for households.
Danni Hewson of AJ Bell says Netflix addresses some concerns by pledging to keep Warner Bros films in cinemas. She adds that rapid regulatory approval could unlock major savings. She notes regulators will closely monitor Netflix’s pricing power in the coming months.
