Hollywood Changes the Game: Netflix Buys Warner Bros

The entertainment world is experiencing an event already called the loudest in decades: Netflix announced it is acquiring Warner Bros. Discovery for $72 billion plus debt. If the deal passes regulators, this isn’t just a corporate merger. It’s a tectonic shift, comparable to one studio swallowing half of Hollywood’s history — and putting it in a subscription catalog.

This is not a local player. Franchises like Batman, Harry Potter, Game of Thrones, and everything Warner has meticulously collected as a legendary content provider, could fall under Netflix’s wing. Imagine all this in the hands of a streamer that has long regarded movie theaters as a relic of the past.

But before Netflix can don the Hollywood Emperor suit, the deal must undergo extreme scrutiny from US regulators and several other countries. This is going to be a heated battle.

What Happened

On Friday morning, Netflix dropped a bombshell: the company agreed to purchase Warner Bros. Discovery, including the legendary studio and assets such as HBO Max, for a staggering $72 billion. The news shook Hollywood and scrambled everyone’s forecasts for the future of the media industry.

WBD will continue with its plan to split into two publicly traded companies in 2026. Once the split takes effect, Netflix will acquire the “Warner half.” The other half, Discovery Global, will house cable channels and CNN.

WBD expects the split to conclude in summer 2026, but Hollywood will see many dramatic twists before then. Paramount and Comcast also vied for Warner Bros., so the fight may not be over.

Netflix shares dipped slightly, while WBD shares rose.

Unexpected Turn in the Hunt for the Giant

For weeks, Paramount was thought to be the frontrunner. Paramount executives openly expressed confidence: they wanted to buy not only the studio but also the cable assets, highlighting their strong ties with the US administration.

But Netflix surprised everyone by submitting two aggressive bids in succession, overtaking Paramount. Netflix co-CEO Ted Sarandos admitted to analysts that he understands the market’s shock: “We have always been builders, not buyers. But opportunities like this come once a generation.”

Ted added that most major media mergers failed simply because buyers didn’t understand what they were acquiring. Netflix, he says, understands the value of Warner Bros. assets — and the company continues to grow.

Big Questions: Can Netflix Win Over Antitrust Regulators?

Netflix agreed to the same massive breakup fee Paramount had proposed — billions of dollars.

But the main obstacle is regulators. Several US politicians have already voiced serious concerns. Senator Mike Lee stated that such concentration of power should be a warning sign for antitrust agencies worldwide.

Analysts now expect not just debates but a political and legal battle. The US is only one market; Europe posed the greatest regulatory risk for Paramount — now Netflix faces it.

Netflix argues the assets complement each other, and the deal will give content creators more opportunities.

Co-CEO Greg Peters emphasized that the merger will allow a global audience to discover even more iconic worlds and stories.

Hollywood Reacts: Excitement, Fear, and Skepticism

Not everyone in the industry is confident the merger will benefit the market. The National Association of Theatre Owners called the deal the “#1 threat to global theatrical distribution.” Netflix traditionally does not favor theatrical releases.

Netflix has reassured that it plans to maintain Warner Bros.’ theatrical releases and even strengthen them. But theater owners remain skeptical of a streamer that has long dismissed cinema premieres as unnecessary.

However, the regulatory approval process may be prolonged, and the film industry fears a new wave of layoffs in Hollywood and a reduction in theatrical releases.

End of the Streaming Wars?

If Netflix acquires Warner Bros. and HBO, the Netflix vs. HBO rivalry, which has defined the industry for the past decade, would end overnight.

Bank of America analysts write bluntly: “If Netflix acquires Warner Bros., the streaming wars are effectively over. Netflix would become the undisputed global leader.”

This is not an exaggeration: Netflix gains a massive content library, global franchises, Warner Bros.’ theatrical infrastructure, iconic HBO brands, its own streaming service.

This Is Just the Beginning

The deal is far from complete. The media world is holding its breath: hearings, reviews, political pressure, potential lawsuits, and competitor interventions lie ahead.

One thing is clear: if Netflix pulls it off, Hollywood will never be the same. And that is putting it mildly.