NEW YORK (AP) 鈥� struck a deal Friday to buy , the Hollywood giant behind 鈥淗arry Potter鈥� and , in a $72 billion deal that would bring together two of the biggest players in television and film and potentially .
If approved by regulators, the merger would put two of the world鈥檚 biggest streaming services under the same ownership 鈥� and join Warner’s television and motion picture division, including , with Netflix’s vast library and its production arm, which has released popular titles such as and
The proposal could draw intense antitrust scrutiny, particularly for its effects and streaming subscriptions.
鈥淣etflix is the top streaming service today. Now combined with HBO Max, it will absolutely cement itself as the Goliath in the streaming industry,鈥� said Mike Proulx, vice president and research director at Forrester, a market research company.
The cash and stock deal is valued at $27.75 per Warner share, giving it a total enterprise value of $82.7 billion, including debt. The transaction is expected to close in the next 12 to 18 months, after Warner completes its previously announced . Not included in the deal are networks such as CNN and Discovery.
Will streaming services stay separate or combine?
One of the big unanswered questions, Proulx added, is whether HBO Max and Netflix would 鈥渟tay as separate streaming services or combine into a mega streaming service.”
But either way, he said, customers could see some price relief in the form of a single subscription bill or bundle promotions, which would be a welcome change as streaming prices continue to rise and consumers feel the pinch of paying for multiple services.
Of course, that all depends on whether the deal goes through. Netflix on Friday maintained that the addition of HBO and HBO Max programming will give its members 鈥渆ven more high-quality titles” and 鈥渙ptimize its plans for consumers.鈥�
Others warned that a Netflix-Warner combo could create an even bigger entertainment titan with ramifications for both consumers and people working across the film and TV industry. the consequences could include job losses and a reduced variety of content.
Gaining Warner鈥檚 legacy studios would mark a notable shift for Netflix, particularly its presence in theaters. Under the proposed acquisition, Netflix has promised to continue theatrical releases for Warner鈥檚 studio films, honoring Warner鈥檚 contractual agreements.
Netflix has kept most of its original content within its core online platform. But there have been exceptions, including qualifying runs for its awards contenders, including this year鈥檚 limited theater screenings of a 鈥淜Pop Demon Hunters鈥� sing-a-long and its coming 鈥淪tranger Things鈥� series finale.
鈥淥ur mission has always been to entertain the world,鈥� Ted Sarandos, co-CEO of Netflix, said in a statement, adding that merging with Warner will 鈥済ive audiences more of what they love.鈥�
David Zaslav, CEO of Warner Bros. Discovery, added that merging with Netflix 鈥渨ill ensure people everywhere will continue to enjoy the world鈥檚 most resonant stories for generations to come.鈥�
Critics question potential effect on movie theaters and filmmakers
Critics said a Netflix-Warner combo for moviegoers and for people who work in theaters. Cinema United 鈥� a trade association that represents more than 30,000 movie screens in the U.S. and another 26,000 screens internationally 鈥� was quick to oppose the deal, which it said 鈥減oses an unprecedented threat to the global exhibition business.鈥�
鈥淣etflix鈥檚 stated business model does not support theatrical exhibition. In fact, it is the opposite,鈥� Michael O鈥橪eary, CEO of Cinema United, said Friday. “Theaters will close, communities will suffer, jobs will be lost.鈥�
The Writers Guild of America sounded a similar alarm and called for the merger to be blocked.
The Producers Guild of America said the Netflix deal must prove that it protects workers’ livelihoods and theatrical distribution. 鈥淟egacy studios are more than content libraries 鈥� within their vaults are the character and culture of our nation,” the union added.
Warner Bros., which is 102 years old, is one of studios left in Hollywood. If the Netflix sale goes through, the remaining legacy studios would be Disney, Paramount, Sony Pictures and Universal.
The Netflix-Warner deal through Washington, on both sides of the aisle.
Democratic Sen. Elizabeth Warren, a longtime antitrust hawk, said the proposed merger 鈥渓ooks like an anti-monopoly nightmare.鈥� And Sen. Roger Marshall, a Kansas Republican and close Trump ally, said the deal 鈥渞aises serious red flags for consumers, creators, movie theaters and local businesses alike.鈥�
Friday鈥檚 announcement followed a monthslong bidding war for Warner. Rumors of interest from Netflix, as well as NBC owner Comcast, started bubbling up in the fall. Skydance-owned Paramount, which completed in August, also reportedly made several all-cash offers.
Paramount seemed like the front-runner for some time, and unlike Netflix or Comcast, it was reportedly vying to buy Warner鈥檚 entire company, including its cable networks and news business.
Beyond combining two of Hollywood’s legacy studios, that would have brought Paramount-owned CBS and Warner’s CNN under the same roof. Such sizeable consolidation would have vastly reshaped America’s TV media landscape, and perhaps raised questions about shifts in editorial control 鈥� as seen both and Skydance’s purchase of Paramount.
Paramount did not immediately respond to a request for comment Friday from The Associated Press.
Regulators and politics could decide fate of deal
While Netflix’s bid won over Warner’s approval, experts stressed that a bumpy regulatory road lies ahead.
鈥淣o doubt politics are going to come into play,鈥� Proulx said. He pointed particularly to the Trump administration鈥檚 relationship with the family of Larry Ellison, whose son David runs Paramount, and of that company鈥檚 frustrations over Warner’s sale process 鈥� both of which, he noted, 鈥渃an鈥檛 be ignored as part of the calculus as to the outcome of all of this.鈥�
Christina DePasquale, a Johns Hopkins University professor who specializes in antitrust issues, said the government might be skeptical of a streaming behemoth controlling both the production and distribution of content.
Warner Bros. Discovery, which was formed just , its streaming and studio operations from its cable business back in June. The move arrived as more and more consumers continue to 鈥渃ut the cord鈥� and rely almost entirely on streaming.
The company outlined plans for HBO, HBO Max, as well as Warner Bros. Television, Warner Bros. Motion Picture Group and DC Studios, to become part of a new streaming and studios company. That is what Netflix is now acquiring. Meanwhile, networks such as CNN, Discovery and TNT Sports and other digital products will make up a separate cable counterpart called Discovery Global.
Warner signaled that it was open to a sale of all of parts of its business , citing 鈥渦nsolicited interest” it had received. Now that it’s agreed to Netflix’s bid, Discovery Global is set to become a new publicly traded company by the third quarter of 2026.
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Ott reported from Washington. Associated Press writers Matt Sedensky in New York, Matt Brown in Washington and Lindsey Bahr in Pittsburgh contributed to this report.
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