Just when you thought 2025 couldn’t get any crazier, the streaming world had one more surprise in store for you before the year was out.
Netflix, already the largest streaming platform with over 325 million subscribers, has taken the bold step of acquiring Warner Bros. Also includes film and television studios, HBO, HBO Max, and other properties. The deal, announced in early December, will bring together some of the most legendary franchises under one roof, including Game of Thrones, Harry Potter and DC Comics.
The size of this mega deal surprised industry observers. Not only is its scale historic, it is predicted to disrupt Hollywood as we know it.
We’re here to explain exactly what’s going on with the Netflix and WBD deal, including the latest developments, what’s at stake, and what’s next.
What happened so far?
This all goes back to October, when Warner Bros. Discovery (WBD) revealed it was considering a potential sale after receiving unsolicited interest from several of the industry’s biggest names.
WBD has struggled for years with billions of dollars in debt due to declining cable viewership and fierce competition from streaming platforms. These financial pressures have forced the company to consider major strategic changes, including selling its entertainment assets to one of its competitors.
The bidding process has rapidly become competitive. Several major companies saw potential in acquiring media giants. Paramount and Comcast emerged as likely candidates, with Paramount initially seen as the frontrunner.
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But in the end, WBD’s board found Netflix’s offer the most attractive, even though Paramount offered about $108 billion in cash. Paramount’s bid was aimed at acquiring the entire company, while Netflix’s offer specifically focused on its film, television, and streaming assets.
Additionally, Netflix recently amended the agreement to an all-cash offer at $27.75 per WBD stock, further reassuring investors and clearing the way for the transaction to proceed. The deal is valued at approximately $82.7 billion.
fierce bidding war
Even after Netflix emerged as the preferred buyer, tensions with Paramount remained high as rival companies continued to pursue Warner Bros. assets.
Paramount continued to try to acquire WBD for several months. Yet the board repeatedly rejected the proposal, citing concerns about Paramount’s high debt and the increased risks associated with the proposal. The board noted that Paramount’s proposal would leave the combined company with $87 billion in debt, a risk it did not want to take.
Paramount filed suit last week seeking more information about its deal with Netflix. The company continues to insist that its offer is far superior.
Regulatory hurdles
Given the unprecedented size and market impact of this transaction, regulatory scrutiny remains intense and remains a significant hurdle to completion. Earlier this week, it was reported that Netflix co-CEO Ted Sarandos was scheduled to testify before a U.S. Senate committee about the deal, underscoring how seriously lawmakers are taking these concerns.
In November, prominent lawmakers including Sens. Elizabeth Warren, Sen. Bernie Sanders, and Sen. Richard Blumenthal raised concerns with the Justice Department’s Antitrust Division, warning that such a large merger could have serious consequences for consumers and the industry as a whole. The senators argue that the merger could give the upstart media giants too much market power, raise prices for consumers and stifle competition.
If regulators block the deal, Netflix will be obligated to pay a $5.8 billion breakup fee. It remains unclear whether Warner Bros. will remain an independent company or reconsider an earlier acquisition proposal.
Concerns within the industry
Reactions from the entertainment industry have been largely negative. The Writers Guild of America has been the most vocal critic, calling for the merger to be blocked on antitrust grounds.
Additionally, insiders fear that the acquisition will push independent creators and diverse voices out of the spotlight, ultimately narrowing the range of stories that can be told. There are also widespread concerns about potential job losses and lower wages.
For creators and theaters, there remains uncertainty regarding release windows. Netflix co-CEO Ted Sarandos said all films scheduled for theatrical release through Warner Bros. will continue as scheduled. However, he also hinted that over time, movies will be released on streaming platforms faster than before, potentially shortening the release window.
What should subscribers know?
What does this mean if you are a Netflix or HBO Max subscriber?
Netflix executives reassured viewers that HBO’s business will remain largely unchanged for the foreseeable future. The company says it is too early to make final announcements about potential bundles or app integrations at this stage.
Regarding pricing, Sarandos said there will be no immediate changes pending regulatory approval. However, subscribers should be aware that Netflix has regularly increased subscription prices in the past, so prices may increase once the acquisition is completed. Netflix tends to raise prices every 1-2 years.
When is the transaction expected to close?
The deal between Netflix and WBD is not yet final.
WBD’s shareholder vote is expected to take place around April, with the acquisition expected to close 12 to 18 months after that vote. However, regulatory approval is still pending and scrutiny could determine the final outcome.
stay tuned…
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