In a move that is already shaking the entertainment industry to its core, Netflix has reached an agreement to purchase Warner Bros Discovery (WBD) for $82.7 billion, marking one of the largest entertainment acquisitions in history. The companies claim the merger will deliver “more choice and greater value for consumers,” positioning the combined giant as a dominant force in global media.
Behind the optimistic messaging, however, lies what many analysts warn is a major consolidation of power—one that will reshape film, television, and gaming for years to come.
A Library of Giants: What Netflix Now Owns
If the deal closes, Netflix will gain control over nearly all of Warner’s entertainment assets, including:
- Warner Bros film and television studios
- HBO and HBO Max
- The entire DC Universe
- Major gaming studios under the Warner umbrella
- Countless historic and modern IPs, including Harry Potter, Friends, Casablanca, The Lord of the Rings (film rights), The Matrix, and more
The only component excluded is WBD’s Global Networks division, which is undergoing a separate spinoff expected to conclude in Q3 2026. The acquisition will finalize after that process is complete.
Netflix co-CEO Ted Sarandos highlighted the scale of the merger, stating that combining Warner’s legendary catalog with Netflix’s own collection—including titles like Stranger Things, KPop Demon Hunters, and Squid Game—will enable the company to “define the next century of storytelling.”
The Theatrical Question: What Happens to Cinemas?
Netflix claims it intends to “maintain Warner Bros’ current operations,” including theatrical film releases. But industry watchers are skeptical:
- Netflix’s business model is built on streaming exclusivity, not box-office returns.
- Past promises in similar mergers often changed after regulatory approval.
While the company insists it will honor theatrical commitments, critics argue that this phrasing leaves plenty of room for reinterpretation once the ink dries.
Regulatory Review and Political Tension Ahead
The acquisition cannot move forward without regulatory approval, and that process may become a battleground.
Paramount Skydance—another major contender for WBD—has already expressed dissatisfaction with the sale process, describing it as “rigged,” according to recent reports. The company is even considering a hostile takeover attempt.
Complicating matters further:
- Paramount Skydance CEO David Ellison is the son of billionaire Larry Ellison.
- David Ellison reportedly visited the White House to argue against the Netflix deal.
- Any intervention by the current administration could stall or disrupt Netflix’s plans.
At present, there’s no indication of presidential involvement, but the political and economic motivations behind such a massive consolidation make federal scrutiny inevitable.
What This Means for the Entertainment Landscape
If finalized, this acquisition marks:
- One of the most significant consolidations of entertainment power in US history
- A shake-up that could redefine how movies and series are distributed
- A massive shift in streaming competition, with Netflix absorbing an entire rival ecosystem
For consumers, the impact remains uncertain. More content may be under one roof, but the long-term effects on pricing, availability, and theatrical releases are yet to be seen.
