Netflix Agrees to $72 Billion Takeover of Warner Bros, Creating Streaming Giant
Netflix has agreed to a $72 billion takeover of Warner Bros, combining Netflix's extensive content, technology, and subscriber base with Warner's library and production capacity. This deal would grant Netflix ownership of HBO and its streaming service HBO Max, which is scheduled to launch in the UK next spring.
The merger would unite the first and third-largest streaming services in the US and two of the foremost creators of original content. This consolidation reflects a fundamental shift in entertainment consumption, as online streaming increasingly surpasses traditional cinema.
However, Hollywood producers and directors have expressed concerns, warning of an 'institutional crisis' in a letter to Variety regarding the impact of such consolidation. US regulators are expected to scrutinize the deal, considering the political context under the Trump administration and potential presidential influence over major mergers.
Netflix has previously outbid competitors such as Comcast (Universal/Sky) and Paramount Skydance in bidding wars. According to CNBC, Paramount, supported by Larry Ellison, may raise complaints about the bidding process surrounding this takeover.
