Netflix moves to buy Warner Bros in an $82 billion deal that could rewrite Hollywood’s future
With streaming growth stalling, Netflix is turning to century-old franchises to stay ahead.
Hollywood loves a plot twist, but even the industry’s best screenwriters couldn’t have predicted this one.
Netflix, the tech upstart that pushed audiences from cinemas to couches, is preparing to buy Warner Bros, the 100-year-old studio behind Harry Potter, Game of Thrones, Casablanca, Friends and more. A deal of this size can rewrite the entire of the film industry.
Netflix has agreed to acquire Warner Bros Discovery’s film and streaming businesses for $82bn, beating Comcast and Paramount–Skydance after weeks of increasingly tense bids. Paramount even accused Warner Bros of running a “tainted” auction that favoured Netflix, pointing to internal conflicts and arguing that their own offer would face fewer regulatory hurdles. But Netflix came in with mostly cash, and the highest offer.
Before the merger can close, Warner Bros will spin off its cable networks, CNN, TNT, Discovery and others, into a separate public company. Only the film studio and HBO Max will move under Netflix.
Why Netflix Wants This, and Why Now
Streaming growth is slowing everywhere. According to Gracenote’s Q4 2025 report, the big five streamers hosted 105,200 unique programmes, growing by just 2.3% from the previous quarter, one of the smallest increases in years. This is as a result of content budgets tightening, and Wall Street pushing platforms to shift from expensive output to sustainable profit.
This pressure hits every streamer, including Netflix. Even though it already has more than 300 million subscribers, it still lacks something traditional studios spent a century building: franchises that live for generations. Franchises that power merchandise, spin-offs, theme parks, and cultural nostalgia.
Warner Bros brings exactly that, stories and characters that recur across generations. Combined with Netflix’s global distribution machine, the partnership creates a catalogue with unmatched reach. Ted Sarandos, Netflix’s co-chief executive, put it simply:
Warner Bros defined the last century; together, we hope to define the next.
If the partnership syncs, it could create the most efficient studio system ever seen. If it clashes, output cuts and culture friction could slow the machine instead of supercharging it. Analysts already expect fewer releases, which could unsettle Hollywood unions.
The Big Obstacles
No deal of this size sails through cleanly. US regulators will heavily scrutinise any company that combines global streaming dominance with one of the deepest catalogues in entertainment history. Film producers and cinema groups have already voiced concerns about monopoly power and Netflix’s limited reliance on theatrical releases.
There are steep break-up fees, too: if the deal collapses, Netflix owes Warner Bros $5.8bn. If Warner Bros retreats, it pays Netflix $2.8bn.
If regulators approve the merger, HBO Max’s biggest titles, from Euphoria to Succession-era hits, could eventually fold into Netflix. That means one subscription for almost everything, though likely at a higher price.
Cinemas will also feel the shift. Netflix says it will protect theatrical releases, but its business model still revolves around streaming hours, not box-office weekends.
Hollywood’s power centres are changing fast. Amazon bought MGM in 2021. Apple is scaling up its studio output. And now Netflix, once the disruptor, is preparing to take over one of Hollywood’s oldest institutions. The centre of power is now the streaming platforms that once stood outside the gates.
If this deal closes, Hollywood’s past and future will sit under the same roof, and Netflix will officially become the kind of studio it once challenged.
Emmanuel Umahi
