After initial reporting Yesterday, The Wrap reported that Netflix had won the bidding war for Warner Bros., with the streamer stepping in this morning to confirm that it would acquire the home of HBO and HBO Max, DC Comics and Bugs Bunny for $82.7 billion. This acquisition will put an end to merger attempts by companies such as Paramount and Comcastbut it is also far from a done deal.
According to Netflix, the acquisition of Warner Bros. will have to be delayed until at least the third quarter of 2026 to make way for previously announced Warner Bros. and Discovery broke up pass. In addition, the transaction will have to undergo regulatory approval. Given these obstacles, companies expect to “close in 12 to 18 months.”
News of the acquisition follows Warner Bros. announcement in October that it is open for sale, at least in part, due to its split from Discovery.
What will happen next is not entirely clear. The Wrap reported that Netflix's deal with Warner Bros. includes a breakup fee of $5 billion if regulators block the deal, indicating some concern on the part of both companies. To this end, CNBC reports that “senior [Trump] administration official said the government viewed the merger with “great skepticism,” and New York Post And Wall Street Journal both companies said yesterday that Paramount (which recently completed its own merger with Skydance Entertainment, led by Trump ally David Ellison) is now warning the administration not to greenlight the deal.
How regulators will react to the purchase remains to be seen, but if the deal goes through, it would represent a major shift for both Hollywood and consumers. Netflix hasn't laid out full plans for how the merger will impact customers, but it did give a few hints in its press release. If the Netflix/Warner Bros. merger happens, here's how you can expect it to affect you.
HBO Max probably won't go away
Since Netflix's core business is the streaming app, the most obvious outcome of the Warner Bros. acquisition would likely be to shut down HBO Max and fold its content into Netflix proper. However, it looks like we're more likely to end up with a Disney+/Hulu situation where the company runs both services simultaneously.
In its announcement announcing the merger, Netflix said it would “retain Warner Bros.” ongoing operations” and that HBO and HBO Max will be viewed as “an attractive, complementary offering” for customers.
Whether this means Netflix subscribers will get additional HBO subscriptions or they'll simply be able to add HBO to their plans as additional “content” is unclear, although I expect the latter interpretation to be correct. After all, Disney charges additional fee for users who also want to subscribe to Hulu even while it's running killing the standalone Hulu app. There would be little reason for Netflix not to follow suit.
This is supported by another line in the press release which states: “[b]By adding an extensive library of movies and TV shows, as well as HBO and HBO Max programming, Netflix members will have even more high-quality movies to choose from.” This means HBO is something you'll add to your existing subscription, rather than content that will simply become part of Netflix's base subscription, with the company saying the acquisition “also allows Netflix to optimize its plans for consumers.”
Some Warner Bros. shows may be released on Netflix
Netflix already offers a small number of series originally developed for HBO or HBO Max, such as: Sex and the City And Reign of the Scavenger. This is due to pre-existing content sharing agreements, but it is possible that Netflix will continue to offer some HBO content to its existing subscribers for free, even if it continues to operate HBO as a separate entity.
For example, Netflix's merger announcement states that “shows and movies such as The Big Bang Theory, Soprano, Game of Thrones, The Wizard of Oz and the DC Universe will join Netflix's expansive portfolio.” While this is likely just an acknowledgment of acquired intellectual property, I wouldn't be surprised if some select shows pop up on Netflix from time to time, either to support lean release schedules or to promote HBO subscriptions/add-ons.
What are your thoughts so far?
Netflix co-CEO Greg Peters also says in the press release that: “[w]With our global reach and proven business model, we can connect wider audiences with the world they live in. [Warner Bros.] He adds that this will be an opportunity to attract “more fans to our best-in-class streaming service.”
Expect Netflix to ramp up US production
While Netflix is best known to consumers as an app, its large selection of original content also means it operates as a production studio. Netflix says it will use the acquisition of Warner Bros.' production side to “expand Netflix's studio capabilities, allowing the company to significantly expand production in the United States.”
This means viewers can expect to see more Netflix original content in the future, especially more American-produced shows in the vein of Stranger Thingsalong with localized foreign programs such as Squid game.
Gamers should pay attention too
In addition to its film and television business, Netflix will also acquire Warner Bros. Games, a company representative confirmed. Game developer. This means that the company will now be responsible for publishing both licensed works, such as Batman Arkham series, as well as original gaming titles such as Mortal Kombat row. Little is known about how Netflix will handle the sudden responsibility for these long-running AAA series, but given recent gaming ambitions and a promise to continue Warner Bros. as usual, it is likely that these games will continue in some capacity.
Netflix will also release DC Comics.
In addition to the sudden entry into big-budget AAA games, Netflix's acquisition of Warner Bros. also means the company gains control of DC Comics' print business along with its film and television businesses, as the publisher is wholly owned by Warner Bros. This is another big step for the company, although given that DC's print business serves largely as the backbone of lucrative IPs like Superman and Batman, it's likely Netflix will do its best to make things as smooth as possible there. However, readers can expect some synergy between Netflix and DC, similar to how Marvel began publishing new Star Wars comics shortly after Disney acquired Lucasfilm. Batman visits Upside-Down from Stranger Things may be more likely than you think.
Don't expect Warner Bros. films. will be streaming immediately
Finally, while past Netflix film releases have often relied on direct streaming complemented by enough theatrical presence to qualify for awards, Netflix said in its release that it plans to continue distributing Warner Bros.-produced films as usual, “including theatrical releases of films,” but that exclusive theater window may shrink. In other words, Batman 2 probably won't get it Knives out or K-Pop Demon Hunters care.
