Netflix announced in December 2025 a deal of acquisition of Warner Bros Discovery’s TV, film studio and streaming division for $72 billion. In fact, Warner Bros Discovery in October 2025 initiated auction and Netflix recognized the opportunity. Warner Bros is a century-old studio with a deep catalogue of movies and TV shows. These titles are valuable to streaming subscribers, and account for 80 per cent of viewing.
If the deal fails to materialize or get the regulatory approval, a breakup fee of $ 5.8 billion will be paid by Netflix. It is quite a substantial breakup fee. It shows the ability of Netflix that it will be able to convince the anti-trust authorities.
Warner Bros theatrical distribution, promotional capabilities and studio operations would contribute to the strengths of Netflix. JP Morgan Chase & Co. is advising Warner Bros. Discovery. Netflix is being advised by Moelis & Company, Wells Fargo and the law firm Skadden, Arps, Slate, Meagher & Flam. Netflix presented a complete and binding bid. The merged unit can rival Walt Disney.
Hollywood theatres sounded alarm over the proposed deal. It would cut the jobs. It would concentrate power. It would reduce theatrical movie releases. The HBO brand will be managed by Netflix. It has already affected movie business by hastening the shift the from movie releases in cinemas to home streaming.
Warner Bros titles such as Batman and Casablanca could come under the control of Netflix.
Similarly, the Writers Guild of America East and West have opposed this deal, since it swallows one of the biggest competitors by taking it under the streaming business. It violates the anti-trust laws. Warner Bros is negotiating with Comcast to license its comic-book heroes. The comic properties include Batman. Superman, Wonder Woman. Currently, they are licensed to Six Flags Entertainment Corp.
These days media companies focus on out-of-home entertainment. Comcast already licenses Harry Potter’s wizarding imagery and characters from Warner Bros to its resorts in the US and China. Universal set up Epic Universe theme park in Orlando with Harry Potters Ministry of Magic.
The Multiplex Association of India has red-flagged the proposed acquisition of Netflix and Warners Bros as it could adversely affect theatrical content availability and threatens India’s cinema ecosystem. Hollywood films contribute 10-15 per cent of India’s total box office collection of Rs. 10000 crores.
Leave a Reply