Netflix to Acquire Warner Bros Discovery's Movie Studio and HBO Streaming Networks
Netflix is set to buy Warner Bros Discovery's movie studio and HBO streaming networks, including HBO, while TNT Sports outside the US is also part of the deal. The acquisition covers major franchises such as Looney Tunes, Harry Potter, Friends, and popular HBO shows.
The merger would add HBO's 128 million subscribers to Netflix's existing 300+ million, enhancing Netflix's scale and production capacity, and combining legacy franchises with Netflix originals. However, the pricing impact remains unclear: Netflix might bundle content differently and keep HBO's brand, with prices potentially rising if Netflix gains leverage or falling if consumers consolidate into a single service.
Netflix aims to complete the deal within 18 months. The HBO name is considered powerful with many strategic options, but details on integration have not been disclosed.
The deal is not finalized yet. Warner Bros Discovery must first spin off CNN, Discovery, and Eurosport. Moreover, rival Paramount Skydance has launched a hostile bid. Regulatory approval in the US and Europe poses a major hurdle. Should the deal collapse, Netflix would pay a $5.8 billion breakup fee.
The acquisition faces regulatory and political scrutiny, with U.S. lawmakers opposing it on grounds of consumer choice and pricing. Experts caution about how regulators define competition and the influence of political pressures. Notably, Donald Trump has suggested possible involvement or White House oversight might be necessary for approval, indicating potential presidential influence on the decision.
Industry experts observe that this deal signifies a shift towards an all-streaming future and the decline of Hollywood's golden age. Netflix has pledged to continue cinema releases for DC films. However, some industry figures, such as James Cameron, have warned that this move could be disastrous.
