In a transformative move for the entertainment industry, Netflix has agreed to acquire Warner Bros. Discovery’s film and television studios and streaming services, including HBO and HBO Max, in a cash-and-stock deal valued at $72 billion. Announced on December 5, 2025, the acquisition is set to finalize after Warner Bros. Discovery spins off its cable operations into a new company, Discovery Global, expected in the third quarter of 2026. Shareholders of Warner Bros. Discovery will receive $27.75 per share, significantly strengthening Netflix’s content library with major franchises like “Harry Potter,” “Game of Thrones,” and the DC Universe.
However, the deal has sparked considerable antitrust concerns. Regulators in the U.S. and Europe are poised to examine the acquisition closely, as the merger of two significant streaming platforms could diminish competition in the market. Critics, including former WarnerMedia CEO Jason Kilar and industry associations like Cinema United, argue that the consolidation could result in fewer theatrical releases and harm consumers through restricted competition.
Hollywood unions and theater owners have also voiced apprehension, with groups such as the Writers Guild of America and Teamsters warning about possible job cuts, lower wages, and increased consumer prices. They advocate for regulatory intervention and thorough antitrust scrutiny.
In response, Netflix argues that the acquisition will enhance its content offerings, boost U.S. production, and support creative professionals, emphasizing projected annual cost savings of $2–$3 billion. The company has pledged to sustain Warner Bros.’ current operations, including theatrical releases, while aiming to provide richer content access for its subscribers. As the industry anticipates this significant shift, scrutiny from regulatory bodies will be crucial in determining the merger’s outcome.
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