20 - Wild Card - Isaiah Calvert
Netflix shocked Hollywood this December by announcing a massive $72 billion deal to buy Warner Bros.’ film and streaming divisions. The move, which values the company at an $82.7 billion, would give Netflix ownership of HBO, HBO Max, and some of the most iconic franchises in entertainment history, from Harry Potter and Game of Thrones to The Big Bang Theory, Friends, and classics like Casablanca and The Wizard of Oz.
The deal only becomes possible after Warner Bros. Discovery finishes splitting itself into two companies in 2026. Its Global Networks division—including CNN, TNT Sports, Discovery Channel, and European free-to-air networks—will become a separate company called Discovery Global. Once that’s done, Netflix steps in and takes everything else: the studio, the streaming platforms, and the entire Warner Bros. library.
Netflix co-CEO Ted Sarandos said combining the two brands means “we can give audiences more of what they love and help define the next century of storytelling,” adding that “Warner Bros. have defined the last century of entertainment, and together we can define the next one.” Netflix expects the deal to boost growth for decades and save $2–3 billion a year by cutting overlapping costs. They also insist Warner Bros. films will continue receiving theatrical releases and that the studio will still produce TV for outside networks.
Warner Bros. Discovery CEO David Zaslav said the merger brings together “two of the greatest storytelling companies in the world,” but not everyone agrees. The Writers Guild of America immediately called for the merger to be blocked, arguing the world’s largest streaming company swallowing one of its biggest competitors will “eliminate jobs, push down wages, raise prices for consumers, and reduce the volume and diversity of content.”
The backlash isn’t just coming from unions. Industry analysts warn that the merged company could release fewer movies, raise subscription prices, and tighten Netflix’s grip over the streaming landscape. Even President Trump raised concerns, saying the deal “could be a problem” because Netflix already has a “very big market share” that would grow dramatically if the purchase goes through. Former regulators say his involvement could lead to an unusually political approval process.
Despite the criticism, many experts think the deal will eventually pass—with conditions. Some argue Netflix won’t look like a monopoly if regulators count cable TV, broadcast networks, and even YouTube as part of the larger competition landscape.
The Guardian pointed out that the timing of the deal is especially strange because Warner Bros. is having one of its best years in decades, with hits like Minecraft, Dune, Superman, Final Destination. Instead of proving Warner Bros. is strong enough to stand alone, its success seems to have made the company more attractive for a sale.
Netflix beat out rivals including Comcast and Paramount Skydance, who both tried to buy Warner Bros., with Paramount even attempting a full takeover earlier this year. With this acquisition, Netflix hopes to cement itself as the number one global entertainment company and secure massive franchises for future generations of viewers.
If regulators approve the deal in 2026 or 2027, Netflix won’t just be a streaming service—it will become the most powerful studio in the world. Whether that strengthens the entertainment industry or concentrates too much power in one company is the question Hollywood will be debating for years.
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