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Streaming giant moves to acquire Warner Bros. Discovery assets
Netflix has unveiled plans to purchase Warner Bros. Discovery's film studio and HBO streaming networks in a deal valued at $5.8 billion, setting the stage for a high-stakes battle with regulators and rivals. The acquisition would merge nearly a century of iconic franchises-from Looney Tunes to Game of Thrones-with Netflix's global subscriber base of over 300 million, creating an unrivaled entertainment powerhouse.
The stakes: dominance and disruption
If completed, the deal would cement Netflix's position as the undisputed leader in streaming, combining its production muscle with HBO's 128 million subscribers and a vast library of blockbuster titles. Analysts warn the merger could reshape pricing, content distribution, and industry employment, with some fearing reduced competition and higher costs for consumers.
"Netflix is already the biggest streaming service, and adding HBO Max makes it arguably untouchable."
Mike Proulx, Vice President, Forrester
Brand strategy and consumer impact remain unclear
Netflix executives have not disclosed how they will integrate Warner Bros. and HBO into their platform. While the HBO brand is described as "very powerful," the company could opt to bundle content under separate tiers or retain the name to preserve its prestige. Pricing adjustments are also uncertain-Netflix's market dominance might enable higher fees, but consolidating two services could lower costs for some users.
Greg Peters, Netflix's co-CEO, acknowledged the HBO brand's value but declined to elaborate on integration plans. Analysts suggest the HBO name is unlikely to disappear entirely, though its role may evolve.
Hollywood reacts: fear and resistance
The deal has drawn sharp criticism from industry veterans, including director James Cameron, who called it a "disaster" for filmmakers and theaters. Warner Bros., a studio behind classics like Casablanca and Gone with the Wind, symbolizes Hollywood's golden age, and its sale underscores the shift toward streaming dominance.
Netflix has pledged to continue theatrical releases, particularly for DC superhero films, but skeptics question whether this commitment will endure. Co-CEO Ted Sarandos previously dismissed movie-going as "outdated," fueling concerns about the future of cinemas.
Regulatory hurdles and political pressure
Approval is far from guaranteed. Warner Bros. Discovery must first spin off non-sold assets, including CNN and Eurosport, while rival bidder Paramount Skydance-backed by tech billionaire Larry Ellison-could still challenge the deal. The biggest obstacle, however, lies with U.S. and European regulators, who are scrutinizing the merger's impact on competition.
Lawmakers from both parties have voiced opposition, warning of reduced consumer choice and higher prices. Jonathan Barnett, a law professor at USC, noted that the deal's fate hinges on how regulators define the market. If streaming is treated as a standalone sector, Netflix's expanded share could trigger antitrust alarms. A broader definition-including cable, broadcast TV, and YouTube-might ease concerns.
Rebecca Haw Allensworth of Vanderbilt Law School called the merger a "clear-cut case for a challenge," but cautioned that the Trump administration's stance on media consolidation-and potential pressure over diversity or political bias-could complicate matters. A senior administration official told CNBC the deal faces "heavy skepticism," though no formal position has been announced.
What's next: a year of uncertainty
Netflix aims to finalize the deal within 12 to 18 months but must navigate a gauntlet of regulatory reviews, shareholder disputes, and industry backlash. The outcome will shape the future of streaming, Hollywood, and media competition for years to come.
