Netflix to Acquire Warner Bros Discovery's Movie Studio and HBO Streaming Networks
Netflix is set to acquire Warner Bros Discovery's movie studio and HBO streaming networks, including TNT Sports outside the US. HBO currently has about 128 million subscribers, who would join Netflix's existing 300+ million subscribers. The deal would unite major franchises and brands such as Harry Potter, Looney Tunes, and Friends with HBO hits like Succession, Sex and the City, and Game of Thrones, alongside Netflix's original content.
Completion of the deal is not guaranteed as Warner Bros Discovery must spin off CNN, Discovery, and Eurosport. Additionally, a rival bid from Paramount Skydance could offer an alternative. The transaction faces an uncertain regulatory review in both the US and Europe. The outcome may depend on whether authorities define competition narrowly, focusing on streaming services, or broadly, encompassing cable, broadcast, and YouTube. Netflix remains confident but acknowledges potential hurdles.
The pricing and packaging implications of the deal are unclear; it could result in higher prices or create bundles that lower costs, depending on how HBO is integrated into Netflix's offerings. Industry reaction has been mixed. Filmmaker James Cameron called the deal a disaster, while analysts suggest the acquisition may signal the end of legacy media. Netflix has pledged to continue cinema releases for DC titles. Netflix's Ted Sarandos emphasized the strength of the HBO brand and highlighted the many options the combined entity would have.
