A defining moment for global media
Netflix plans to buy the film and streaming units of Warner Bros Discovery for 72 billion dollars. The company wins the heated contest against Comcast and Paramount Skydance. Warner Bros controls major franchises such as Harry Potter and Game of Thrones. It also operates HBO Max. The merger would create a powerful entertainment leader, though regulators still need to approve it. Industry groups already warn of serious risks.
Netflix co-chief Ted Sarandos says he remains confident about the process. He says joining both libraries will expand storytelling across the world. He argues that Warner Bros shaped entertainment for a century and both firms can shape the next one.
Greg Peters, the other co-chief, says HBO continues to hold strong value for audiences. He says details of the merged service remain too early to define.
Efficiency goals and creative plans
Netflix expects savings of two to three billion dollars. Most cuts will target overlapping support and technology roles. Warner Bros will continue releasing films in cinemas. Its television studio can still create shows for outside partners. Netflix will keep producing exclusive content for its own platform.
Sarandos calls the agreement a rare opportunity for long-term growth. He says some shareholders may feel surprised, yet he sees a strategic leap for both companies. Warner Bros chief David Zaslav says the merger unites two of the world’s strongest storytelling groups. He says the partnership will keep powerful stories alive for years.
The offer values each Warner Bros share at 27.75 dollars. The enterprise value reaches about 82.7 billion dollars. The equity value totals 72 billion dollars. Both boards approve the deal unanimously.
Unions warn of heavy consequences
The Writers Guild of America urges regulators to block the agreement. It warns of job losses, lower pay and weaker conditions. It also warns that viewers may face higher prices and less diverse content. Michael O’Leary of Cinema United calls the deal a threat to global cinemas. He fears serious harm for big chains and small theatres alike.
Netflix will complete the takeover once Warner Bros finishes its planned corporate split. Discovery Global will run the networks division, including major US news and sports channels and several European free-to-air networks. TNT Sports International will stay with the studios and streaming division sold to Netflix.
Industry prepares for a dramatic shift
Analyst Paolo Pescatore says the sale shows Netflix’s drive to dominate global streaming. He warns that merging such large firms will bring heavy challenges. Paramount had tried to buy the entire company earlier, but Warner Bros rejected that offer before seeking a new buyer.
Tom Harrington of Enders Analysis says approval would transform Hollywood in major ways. He expects large cuts in film and TV output from the combined group. He predicts resistance from unions and major industry players. He also warns that subscription prices may increase for many households.
Danni Hewson of AJ Bell says Netflix helps ease concerns by keeping Warner Bros films in cinemas. She says quick regulatory approval could generate major savings. She adds that regulators will study Netflix’s pricing power closely in the coming months.
