August M
CNN reports that Netflix has reached a $72bn agreement to acquire Warner Bros. and HBO, the most dramatic consolidation move yet in the streaming era.
Hollywood is reeling after Netflix announced a sweeping agreement to buy Warner Bros. and HBO in a deal that could collapse long-standing industry rivalries and redraw the global entertainment map, CNN reports. It is being described as a historic merger.
Under the plan outlined by Warner Bros. Discovery (WBD), the company will split into two publicly traded entities in 2026.
Netflix intends to purchase the Warner Bros.–focused half, gaining the studio behind some of the most influential films and series in modern history, along with the HBO Max streaming service.
CNN and other cable channels would move to a separate group called Discovery Global.
CNN noted that Paramount and Comcast, both bidders earlier in the process, may still attempt to challenge the outcome — a reminder that the saga remains fluid.
Surprise shake-up
For weeks, Paramount had appeared poised to win the auction, with executives touting close strategic alignment with the Trump administration and positioning themselves as natural buyers of WBD’s full portfolio.
But sources told CNN that Netflix surged ahead after submitting two aggressive proposals, matching Paramount’s costly breakup fee and signalling unusual confidence about its ability to navigate regulatory hurdles.
Those hurdles could prove formidable. U.S. politicians immediately expressed alarm, calling the merger one of the most consequential antitrust tests in years.
Sen. Mike Lee warned that Netflix’s move to buy “its real competitive threat” should raise red flags globally.
Netflix’s defence
Netflix executives have argued that the deal is complementary rather than consolidating, claiming it will expand opportunities for creators and strengthen the industry.
Co-CEO Greg Peters said Warner Bros. “has helped define entertainment for more than a century,” adding that Netflix’s global reach could bring those worlds to more audiences while boosting shareholder value.
But skepticism remains widespread. Cinema United, representing movie theatre owners, called the merger an “unprecedented threat” due to Netflix’s limited commitment to theatrical releases.
Anticipating backlash, Netflix insisted it would maintain and expand Warner’s theatrical strategy.
End of an era?
Analysts quoted by CNN say the acquisition could effectively conclude the streaming wars, establishing Netflix as the unchallenged centre of global entertainment.
A Bank of America report put it bluntly: “If Netflix acquires Warner Bros., the streaming wars are effectively over.”
With regulatory reviews ahead and competitors circling, the final outcome is far from settled — but the industry is already bracing for seismic change.
Sources: CNN
