A major leap in streaming power
Netflix plans to buy the film and streaming units of Warner Bros Discovery for 72 billion dollars. The company wins a long bidding fight against Comcast and Paramount Skydance. Warner Bros controls huge franchises like Harry Potter and Game of Thrones. It also operates the streaming service HBO Max. The merger would create a dominant entertainment giant, but regulators must still approve it. Some industry groups already voice strong concerns.
Netflix co-chief Ted Sarandos says he feels very confident about approval. He says the blend of Warner Bros films and Netflix series will enrich global storytelling. He argues that Warner Bros shaped the last century of entertainment and both firms can shape the next.
Greg Peters, the other co-chief, says HBO remains a vital brand for viewers. He says it is too early to reveal full details about how the new service will work.
Cost cuts and creative plans
Netflix expects two to three billion dollars in savings. Most reductions target overlapping support and technology departments. Warner Bros will keep releasing films in cinemas. Its television studio can still make shows for outside companies. Netflix will continue producing exclusive content for its own platform.
Sarandos calls the deal an important moment for both firms. He says some investors may feel surprised, but he sees a rare chance to secure long-term success. Warner Bros chief David Zaslav says both companies stand among the strongest storytellers in the world. He says the agreement ensures audiences can enjoy powerful stories for generations.
The offer values each Warner Bros share at 27.75 dollars. The enterprise value reaches about 82.7 billion dollars. The equity value stands at 72 billion dollars. Both boards approved the deal unanimously.
Creative unions raise alarms
The Writers Guild of America urges regulators to stop the merger. It warns that the deal would cut jobs, lower wages and harm working conditions. It says viewers could face higher prices and fewer diverse shows. Michael O’Leary from Cinema United calls the merger a threat to global cinemas. He fears damage to major chains and small theatres alike.
Netflix will complete the takeover once Warner Bros finishes its planned split into two companies. Discovery Global will hold the global networks division, including major US news and sports channels and several European free-to-air networks. TNT Sports International will stay with the division sold to Netflix.
Hollywood braces for deep change
Analyst Paolo Pescatore says the sale shows Netflix’s ambition to dominate global streaming. He warns that merging the two firms may create major challenges due to the size of the deal. Paramount had tried to buy the whole company earlier, 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 major cuts in film and TV output from a merged company. He predicts resistance from unions and industry groups. He also warns that subscription prices may rise for many households.
Danni Hewson of AJ Bell says Netflix eases some tension by keeping Warner Bros films on the big screen. She says quick regulatory approval could bring major savings. She adds that regulators will examine whether Netflix gains too much pricing power in the months ahead.
