Hollywood, December 5, 2025 – Netflix has agreed to acquire Warner Bros Discovery for $72 billion, combining one of the oldest Hollywood studios with the world’s leading streaming platform. The deal, which includes Warner Bros’ TV, film, and streaming assets, has triggered concerns over competition, content diversity, and potential price increases for consumers.

Terms of the Netflix-Warner Bros Discovery Deal

The acquisition follows a weeks-long bidding war between Netflix and Paramount-Skydance, the owner of CBS News. Netflix ultimately offered $28 per share, compared with Paramount’s $30 per share, but structured the deal to include $23.25 in cash and $4.50 in Netflix stock per Warner Bros Discovery share. This values the studio at $72 billion in equity and $82.7 billion including debt.

Netflix agreed to a $5.8 billion breakup fee, while Warner Bros Discovery would owe Netflix $2.8 billion if the deal collapses. The company projects $2–3 billion in annual cost savings by the third year post-merger. Warner CEO David Zazlav will step down once the merger is finalized.

Strategic Assets and Market Impact

The acquisition would grant Netflix control of iconic franchises such as Game of Thrones, DC Comics, and Harry Potter, as well as HBO Max’s 128 million subscribers, adding to Netflix’s existing 300 million-plus subscriber base. Analysts warn that the merger could greatly increase Netflix’s market dominance, raising antitrust and competition concerns in both the United States and Europe.

Netflix asserts the merger will create more jobs and opportunities for talent, although details on how this will be achieved remain limited.

Jason Kilar, former CEO of Warner Media, criticized the deal, stating:

“If I was tasked with doing so, I could not think of a more effective way to reduce competition in Hollywood than selling WBD to Netflix.”

SAG-AFTRA also expressed concerns that the merger could negatively affect creative talent and workers in the entertainment industry, warning of reduced creative control, lower pay, and fewer opportunities for actors and writers.

Antitrust Concerns and Regulatory Scrutiny

Lawmakers and regulators in Washington have voiced skepticism about the merger. US Senator Elizabeth Warren called it an “antitrust nightmare,” cautioning that the deal would limit consumer choice, drive up subscription prices, and centralize control of content.

Representative Pramila Jayapal, co-chair of the House Monopoly Busters Caucus, echoed these concerns, warning that the merger could lead to cookie-cutter content, higher prices, and reduced creative freedom for artists in the media industry. Republican lawmakers also noted the potential negative impact on competition in the streaming sector.

Analysts predict that the merger will face intense regulatory scrutiny both domestically and abroad, as Netflix consolidates its position as a dominant player in Hollywood. Paolo Pescatore, an industry analyst at PP Foresight, commented:

“The combined dominant streaming player will be heavily scrutinized under current antitrust and media regulations.”

Broader Implications for Hollywood and Streaming

The merger could reshape the global entertainment landscape. Netflix will now control major film and TV franchises while also increasing its leverage in negotiations with theaters, advertisers, and production studios. Cinema United, a global exhibition trade association, warned that the deal poses an “unprecedented threat” to movie theaters worldwide, as streaming giants gain disproportionate power in content distribution.

The acquisition also intersects with political dynamics. Paramount-Skydance, which lost the bid, has connections to former US President Donald Trump’s administration through CBS News. Analysts note that Netflix’s victory avoids potential alignment of the studio with partisan political interests.

Market Reaction

On Wall Street, Netflix shares dipped 0.8 percent, while Warner Bros Discovery rose 3.5 percent in midday trading, reflecting investor optimism about the premium offered to shareholders.

If approved, the merger will not only reshape the streaming industry but could also set a precedent for future media consolidations, raising questions about competition, content diversity, and consumer choice in Hollywood.