A sweeping move in global entertainment
Netflix plans to acquire the film and streaming businesses of Warner Bros Discovery for 72 billion dollars. The company wins the bidding race against Comcast and Paramount Skydance after a lengthy contest. Warner Bros owns giant franchises like Harry Potter and Game of Thrones. It also operates HBO Max. The merger would create a dominant media force, but regulators still need to approve it. Creative unions already express strong concern.
Netflix co-chief Ted Sarandos says he feels confident about securing approval. He says combining both content libraries will give viewers richer stories. He argues that Warner Bros shaped entertainment for a century and both firms can guide the next era.
Greg Peters, the other co-chief, says the HBO brand remains vital for audiences. He says it is too early to reveal the full design of the merged service.
Savings plan and release strategy
Netflix expects two to three billion dollars in savings. Most cuts target overlapping support and technical teams. Warner Bros will keep launching films in cinemas. Its television studio can still produce for outside partners. Netflix will continue making exclusive shows for its own platform.
Sarandos calls the deal a landmark step for both companies. He says some shareholders may feel surprised, but he views the agreement as a rare long-term opportunity. Warner Bros chief David Zaslav says the merger unites two remarkable storytelling companies. He says the partnership will keep powerful stories alive for many 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 deal unanimously.
Strong pushback from unions and cinema groups
The Writers Guild of America urges regulators to reject the merger. It warns that the deal will cut jobs, push down wages and hurt working conditions. It also warns of higher prices and a drop in content variety. Michael O’Leary of Cinema United says the agreement threatens cinemas worldwide. He fears damage for major chains and small independent theatres.
Netflix will finalise the takeover once Warner Bros completes its planned split into two companies. 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 disruption
Analyst Paolo Pescatore says the deal highlights Netflix’s ambition to lead global streaming. He warns that merging two huge businesses will create major challenges. Paramount had earlier offered to buy the entire company, but Warner Bros rejected that bid before seeking new buyers.
Tom Harrington of Enders Analysis says approval would reshape Hollywood in dramatic ways. He expects notable cuts in film and TV production. He predicts resistance from unions and key industry groups. He also warns that subscription prices may rise for many households.
Danni Hewson of AJ Bell says Netflix reduces some pressure by confirming that Warner Bros films will stay in cinemas. She says fast regulatory approval could deliver major savings. She adds that regulators will examine Netflix’s potential pricing power in the coming months.
