Netflix has struck a deal with Warner Bros Discovery to buy the legacy Hollywood giant’s studio and streaming business for $72 billion.
The acquisition, announced on Friday (December 5, 2025), would bring two of the industry’s biggest players in film and TV under one roof.
Beyond its namesake television and motion picture division, Warner owns HBO Max and DC Studios. And Netflix has risen to dominance as a household name ubiquitous to on-demand content, while building of its own production arm to release popular titles like “Stranger Things” and “Squid Game.” The streamer has offered roughly $28 a share — largely in cash — to take over Warner Bros. Studios and the HBO Max streaming operation, outpacing parallel offers from Paramount and Comcast.
The deal came after a frantic, weeks-long auction that reshaped industry expectations and exposed deep fractures between Hollywood power players. Sources indicate a $5 billion breakup fee is included in the proposal, a sign of Netflix’s confidence in the deal’s viability.
The acquisition would be the most significant strategic leap in Netflix’s history. It would bring the studio’s vast infrastructure under the company’s control, including DC Studios, Warner Bros Television, HBO, New Line, and a library stretching from the Harry Potter franchise to the MGM pre-1986 catalog. Analysts describe the studio as a “crown jewel,” one capable of elevating Netflix’s standing beyond streaming and into broader cultural and commercial territory.
Paramount — which bid for all of WBD — has pushed back hardest, warning that Netflix’s dominant market position will face insurmountable antitrust scrutiny. In internal correspondence, the company accused WBD’s leadership of favoring Netflix and raised concerns about management conflicts tied to future roles and compensation. WBD rejected the claims as unfounded.
According to Variety, an anonymous group of A-list producers and directors circulated a letter to Congress urging lawmakers to scrutinise the merger, warning that Netflix’s control over Warner Bros. would “effectively hold a noose around the theatrical marketplace.” Their central fear is that Netflix could sharply reduce the exclusive theatrical window for Warner Bros. films, or sideline theaters altogether in favor of rapid streaming turnarounds. Some insiders claim the proposed window could shrink to two weeks, though sources close to the negotiations insist it would be longer.
The group cited Netflix co-CEO Ted Sarandos’ repeated remarks distancing the company from a theatrical-first philosophy, arguing that the merger risks collapsing essential revenue streams and destabilising long-standing exhibition practices.
Warner Bros. Discovery’s stock jumped to a 52-week high on news of the bid. Now as the deal closes, Netflix will not only inherit a massive library but a global theatrical distribution network that could redraw industry boundaries and spark one of the decade’s fiercest regulatory battles.
(With inputs from AP)
Published – December 05, 2025 01:03 pm IST