What to Know About Netflix’s Massive—and Controversial—Deal to Acquire Warner Bros.

Netflix is moving to acquire Warner Bros. in a multi-billion-dollar deal that would unite two of the biggest players in the entertainment industry and potentially transform the media business. The streaming giant has reached an agreement to buy Warner Bros., including its film and television studios, HBO, and HBO Max, at a value of about $82.7 billion, Netflix said in a press release announcing the news on Friday.  The acquisition stands to expand Netflix’s already extensive content library and growing power within the entertainment world. The company currently has more than 300 million paid subscribers across more than 190 countries, making it the largest paid streaming service in the world. The deal would give it ownership of one of its leading streaming rivals in HBO Max, as well as Warner Bros.’ storied Hollywood film studio and popular film and television franchises, including Game of Thrones and Harry Potter. The company said the deal is expected to close after Warner Bros. separates its cable business from its streaming and studio business, likely by the third quarter of 2026. The acquisition will also require the approval of federal regulators—which Netflix co-CEO Ted Sarandos has said the company is “highly confident” it will receive. “Our mission has always been to entertain the world,” Sarandos said in the press release. “By combining Warner Bros.’ incredible library of shows and movies—from timeless classics like Casablanca and Citizen Kane to modern favorites like Harry Potter and Friends—with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we’ll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling.” But the deal has sparked backlash from some industry leaders and lawmakers who fear that it would give the streaming service too much authority within the entertainment industry. Democratic Sen. Elizabeth Warren of Massachusetts said the deal looked “like an anti-monopoly nightmare,” while the Writers Guild of America said it “must be blocked.” Here’s what to know about the deal. What’s included in the deal? Under the deal, Netflix would acquire Warner Bros.’ studio and streaming business, which includes HBO Max and HBO. Netflix said that shows and movies currently available on Warner Bros. streaming sites—such as The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz, and the DC Universe—would join its own portfolio as a result of the deal. Netflix also said it would maintain Warner Bros.’ commitment to theatrical releases for its movies. While the legacy media company has continued to put its films out in theaters, Netflix has mainly focused on expanding at-home streaming services. Why is the deal receiving pushback—and from who? Critics have expressed concern that the deal would lead to Netflix having a monopoly in the streaming market. “A Netflix-Warner Bros. would create one massive media giant with control of close to half of the streaming market,” Warren said in a post on X on Friday. “It could force you into higher prices, fewer choices over what and how you watch, and may put American workers at risk.” She urged the Justice Department to “enforce our nation’s anti-monopoly laws fairly and transparently.” Democratic Rep. Pramila Jayapal of Washington, like Warren, called the deal a “nightmare.” “It would mean more price hikes, ads, & cookie cutter content, less creative control for artists, and lower pay for workers,” Jayapal wrote on X. “The media industry is already controlled by a few corporations with too much power to censor free speech. The gov’t must step in.” Several Republican lawmakers have expressed similar worries. “This potential transaction, if it were to materialize, would raise serious competition questions—perhaps more so than any transaction I’ve seen in about a decade,” Sen. Mike Lee of Utah warned in a post on X on Wednesday, prior to Netflix winning the bidding war for Warner Bros. “Netflix built a great service, but increasing Netflix’s dominance this way would mean the end of the Golden Age of streaming for content creators and consumers,” he added. On Thursday night, before the deal was confirmed but after Netflix had won the bidding battle, the Directors Guild of America, which represents film and television directors, said it was hoping to meet with Netflix to discuss its “concerns.” “We believe that a vibrant, competitive industry—one that fosters creativity and encourages genuine competition for talent—is essential to safeguarding the careers and creative rights of directors and their teams,” the guild told Deadline. “We will be meeting with Netflix to outline our concerns and better understand their vision for the future of the company. While we undertake this due diligence we will not be commenting further.” The Writers Guild of America, which represents writers in the entertainment and media industries, spoke out more strongly against the deal in a joint statement from its East and West Coast branches on Friday. “The world’s largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent,” the statement asserted. “The outcome would eliminate jobs, push down wages, worsen conditions for all entertainment workers, raise prices for consumers, and reduce the volume and diversity of content for all viewers. Industry workers along with the public are already impacted by only a few powerful companies maintaining tight control over what consumers can watch on television, on streaming, and in theaters. This merger must be blocked.”