NEW YORK — Netflix announced Friday that it has reached a $72 billion agreement to acquire Warner Bros. Discovery, the Hollywood studio behind “Harry Potter,” HBO Max, and DC Studios. The deal would unite two of the largest players in film and streaming, potentially reshaping the global entertainment landscape.
If approved by regulators, the merger would combine Warner’s film and television operations with Netflix’s extensive streaming platform and original content, including hits like “Stranger Things” and “Squid Game.” The acquisition could face significant antitrust scrutiny, particularly regarding competition in filmmaking and subscription streaming services.
The all-cash and stock deal values Warner shares at $27.75 each, totaling an enterprise value of $82.7 billion including debt. The transaction is expected to close within 12 to 18 months, after Warner completes the separation of its cable networks. Networks such as CNN and Discovery are not included in the sale.
A key question remains whether Netflix and HBO Max will continue as separate streaming services or merge into a single platform. Analysts say either scenario could benefit consumers with bundled subscriptions or promotions, though content diversity and job security in the entertainment sector are concerns.
Netflix co-CEO Ted Sarandos said the merger will provide audiences with “more high-quality titles” and strengthen Netflix’s ability to deliver entertainment globally. Warner Bros. Discovery CEO David Zaslav added that the combination “will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”
Critics, including Cinema United and the Writers Guild of America, warned that a Netflix-Warner merger could threaten theatrical exhibition, potentially causing theater closures and job losses. Cinema United CEO Michael O’Leary noted that Netflix’s model historically prioritizes streaming over theaters, creating an “unprecedented threat to the global exhibition business.”
Warner Bros., founded 102 years ago, remains one of Hollywood’s “big five” studios, alongside Disney, Paramount, Sony Pictures, and Universal. The acquisition would extend Netflix’s reach into theatrical releases while maintaining contractual obligations for Warner’s upcoming films. Netflix currently operates select theaters, including the Paris Theater in New York and the Egyptian Theatre in Los Angeles.
The deal follows months of competitive bidding, including interest from Comcast and Paramount. Paramount had reportedly offered to acquire Warner’s entire company, including cable networks, which would have significantly reshaped U.S. television media.
The proposed merger has drawn attention in Washington, with lawmakers expressing concern over potential antitrust and consumer impacts. Democratic Senator Elizabeth Warren called it “an anti-monopoly nightmare,” while Republican Senator Roger Marshall cited risks to creators, theaters, and local businesses.
Warner’s studios have produced some of Hollywood’s top-grossing films, including “A Minecraft Movie,” “Superman,” and “Sinners,” as well as Oscar contenders. The library also includes classics like “Casablanca,” “Citizen Kane,” and the “Harry Potter” series. Netflix plans to honor theatrical releases and continue supporting filmmakers while potentially offering more flexible subscription options for consumers.
The merger, if approved, could create a streaming and production powerhouse with far-reaching implications for content, theatrical exhibition, and the broader entertainment industry. Analysts note that regulatory review will be critical to ensure competition and protect both audiences and workers in the film and TV sectors.
Movies scheduled under Warner’s labels include high-profile 2026 releases like Wuthering Heights, Supergirl, Practical Magic 2, Alejandro Iñárritu’s untitled Tom Cruise project, and Dune: Part Three, with sequels to Superman, A Minecraft Movie, and The Batman expected in 2027. Netflix aims to maintain 12 to 14 releases annually across Warner Bros. Pictures, DC Studios, New Line Cinema, and Warner Bros. Animation.
This acquisition represents one of the largest consolidations in entertainment history, signaling a potential new era for streaming, theatrical distribution, and Hollywood’s legacy studios.
