Netflix Set to Buy Warner Bros. and HBO Max in an $82.7 Billion Deal and I Don't Like it

The entertainment world just took a seismic hit as Netflix and Warner Bros. Discovery confirmed a deal that will see Netflix acquire Warner Bros., HBO Max, and HBO for a staggering $82.7 billion.

The agreement ends weeks of heated bidding and pulls one of Hollywood’s oldest and most influential studios under the umbrella of a streaming giant that has made its name by operating very differently from traditional Hollywood. As a fan of Warner Bros. history and theatrical storytelling, I can’t say I’m excited about this.

Netflix’s co CEO Ted Sarandos addressed the surprise many fans and analysts felt, saying, “I know some of you are surprised we are making this acquisition,” adding that the company has traditionally been more “builders” than “buyers.

“Still, here we are, facing a future where HBO Max will remain a standalone service for now, while its libraries and HBO originals are set to flow into Netflix’s already massive collection.

“Netflix insists the goal is to ‘maintain Warner Bros.’ current operations and build on its strengths,” including honoring theatrical releases that run through 2029.

The companies obviously framed the deal as a major win for viewers. “By adding the deep film and TV libraries and HBO and HBO Max programming, Netflix members will have even more high quality titles from which to choose,” Netflix said.

“This also allows Netflix to optimize its plans for consumers, enhancing viewing options and expanding access to content.” That may sound great on paper, but the idea of one company absorbing so much cultural history and studio power feels like a huge step toward consolidation that rarely benefits creativity or fans.

Netflix expects to carve out two to three billion dollars in annual cost savings by year three, and the deal is expected to boost Netflix’s earnings per share by year two.

WBD shareholders will receive $23.25 in cash and $4.50 in Netflix stock for each share when the deal closes, which is projected to happen in the next 12 to 18 months once Discovery Global completes its separation and regulatory hurdles are cleared.

And those hurdles may be significant. Antitrust concerns have already been raised, including a letter from Rep. Darrell Issa warning, “With more than 300 million global subscribers and a vast content library, Netflix currently wields unequaled market power.”

If regulators block the acquisition, Netflix must pay WBD a massive $5.8 billion breakup fee. Still, Sarandos claims, “We’ve signed a deal [and] we are running full speed toward regulatory approval.”

Hollywood guilds and theaters are uneasy as well. Groups like the Directors Guild of America and Cinema United fear this takeover will further squeeze the theatrical landscape.

Netflix, however, insists it will strengthen the industry, stating, “This acquisition will enhance Netflix’s studio capabilities, allowing the company to significantly expand U.S. production capacity and continue to grow investment in original content over the long term which will create jobs and strengthen the entertainment industry.”

Netflix and Warner Bros. positioned the merger as a unification of two global storytelling powerhouses. They describe a future where franchises like The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz, and the DC Universe sit alongside Netflix hits like Wednesday, Money Heist, Bridgerton, Adolescence, and Extraction. As the companies put it, the deal “will create an extraordinary entertainment offering for audiences worldwide.”

Sarandos doubled down on that ambition, saying, “Our mission has always been to entertain the world. By combining Warner Bros.’ incredible library of shows and movies from timeless classics like ‘Casablanca’ and ‘Citizen Kane’ to modern favorites like Harry Potter and ‘Friends’ with our culture defining titles like ‘Stranger Things,’ ‘KPop Demon Hunters’ and ‘Squid Game,’ we’ll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling.”

Netflix co CEO Greg Peters added, “Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities.

“With our global reach and proven business model, we can introduce a broader audience to the worlds they create giving our members more options, attracting more fans to our best in class streaming service, strengthening the entire entertainment industry and creating more value for shareholders.”

WBD CEO David Zaslav said, “Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most.

“For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”

Warner Bros. Discovery had already planned to split its businesses into two publicly traded companies, which is now expected to finalize in late 2026. Discovery Global will house properties like CNN, TNT Sports, Discovery, and the Discovery+ digital services under the leadership of CFO Gunnar Wiedenfels.

There’s also a wild bit of irony here. Fifteen years ago, then Time Warner CEO Jeff Bewkes scoffed at Netflix’s rise, joking, “It’s a little bit like, is the Albanian army going to take over the world” Now Netflix is literally buying the studio that once dismissed it.

This acquisition is undeniably historic, but as someone who values the identity of distinct studios and the creative ecosystems they support, I can’t shake the uneasy feeling that we’re watching another pillar of Hollywood independence disappear.

Consolidation may look efficient on spreadsheets, but it rarely feels great for fans who want variety, risk taking, and real competition. Warner Bros. shaped the last hundred years of film, and I worry what it means when the next century of storytelling is steered by a stremaing service that doesn’t truley value the theatrical movie-going experience.