New York, December 09, 2025
Netflix announced its $72 billion acquisition of Warner Bros. Discovery’s film and TV assets in December 2025, a deal set to reshape Hollywood and ignite concerns over media market concentration. The transaction is expected to close in late 2026 after regulatory reviews and Warner Bros.’ cable network spin-offs.
Netflix’s Largest Entertainment Acquisition to Date
The acquisition involves Netflix purchasing Warner Bros.’ film and television studios, HBO, and HBO Max for an estimated equity value of $72 billion. Including Warner Bros.’ debt, the enterprise value reaches approximately $82.7 billion. This transaction marks Netflix’s most significant deal, surpassing previous entertainment industry acquisitions such as Amazon’s $8.5 billion MGM purchase in 2022.
Transforming Hollywood’s Content Landscape
By combining Netflix’s global streaming platform with Warner Bros.’ extensive library of prized intellectual property—including franchises like Harry Potter, Batman, and Game of Thrones—the merger will create the world’s largest entertainment company. Industry analysts expect this integration to significantly alter content creation, distribution, and subscriber dynamics worldwide.
Strategic Shift Toward Intellectual Property Ownership
This deal signals a strategic pivot for Netflix, transitioning from primarily producing original content to owning a substantial volume of established IP. Netflix forecasts cost savings between $2 billion and $3 billion within three years following the merger and expects the transaction to be accretive to earnings by the second year. However, these financial moves may prompt increased subscription prices to offset acquisition expenditures and maintain long-term subscriber loyalty.
Regulatory Challenges and Market Power Concerns
Given the deal’s size and influence, regulatory authorities in the United States and other countries are conducting intense scrutiny. The acquisition raises questions about potential shifts in market power and competition within the entertainment sector, prompting deliberations on monopoly risks and media ownership concentration.
Former President Donald Trump Voices Concerns
Reflecting broader political and public apprehensions, former U.S. President Donald Trump publicly indicated that the $72 billion Netflix-Warner Bros. deal “could be a problem.” His remarks likely underscore worries about the cultural and economic impact of one entity controlling a dominant share of media content, echoing ongoing debates among policymakers and industry experts.
The Netflix-Warner Bros. acquisition stands as a landmark transaction that will redefine global entertainment. Yet, it remains subject to thorough regulatory reviews and continued political discourse surrounding the implications for media diversity, market competition, and consumer impact in the coming years.