{"id":3918,"date":"2025-12-06T14:20:11","date_gmt":"2025-12-06T09:20:11","guid":{"rendered":"https:\/\/paknews.centers.pk\/the-netflix-and-warner-bros-deal-might-be-great-for-shareholders-but-not-for-anyone-else\/"},"modified":"2025-12-06T14:20:11","modified_gmt":"2025-12-06T09:20:11","slug":"the-netflix-and-warner-bros-deal-might-be-great-for-shareholders-but-not-for-anyone-else","status":"publish","type":"post","link":"https:\/\/paknews.centers.pk\/ur\/the-netflix-and-warner-bros-deal-might-be-great-for-shareholders-but-not-for-anyone-else\/","title":{"rendered":"The Netflix and Warner Bros. deal might be great for shareholders, but not for anyone else"},"content":{"rendered":"


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Netflix’s $82.7 billion acquisition of Warner Bros.<\/a> is, in many ways, the last thing a weakened Hollywood needs right now. The industry is still recovering from the COVID-19 pandemic, where theaters were forced to close and audiences became even more comfortable with streaming films at home<\/a>. The WGA and SAG-AFTRA strikes in 2023, which were driven by legitimate concerns around studio interest in generative AI<\/a>, delayed production and promotion of many film and TV projects. And the rise of streaming content pushed many media companies towards taking on debt and unwise mergers (see: Warner Bros. Discovery<\/a>), which led to higher subscription costs<\/a>, layoffs and production belt-tightening.<\/p>\n

How can a troubled media company survive today? The answer seems to be further consolidation. Amazon’s $8.45 billion MGM takeover<\/a> in 2022 heralded future deals, like Skydance’s $8 billion acquisition of Paramount<\/a> . But Netflix’s WB deal goes even further: It could fundamentally reshape the media industry as we know it, from theatrical movie-going to the existence of physical media.<\/p>\n

What will the Netflix and Warner Bros. deal include?<\/h2>\n

After next year’s already-announced separation of Warner Bros. and Discovery<\/a>, Netflix says it plans to acquire all of Warner Bros. remaining assets \u2014 including its film and TV studios, HBO Max and HBO \u2014 for $82.7 billion. According to Game Developer<\/a>, representatives also say Warner Bros. Games, which includes Mortal Kombat<\/em> developers NetherRealm, will also be part of the deal.<\/p>\n

Will the Netflix and Warner Bros. deal be approved by regulators?<\/h2>\n

Even before the deal was formally announced, it was clear that whoever bought WB would be facing government opposition from every side. Yesterday, Paramount sent WB a letter<\/a> questioning the “fairness and adequacy” of the acquisition bidding process (which also included Comcast as a potential buyer). Afterwards, the New York Post<\/em> reported<\/a> that Paramount CEO David Ellison, son of the Trump-boosting Oracle CEO Larry Ellison, met with administration officials to make his case for buying Netflix. As of this morning, the Trump administration views the Netflix\/WB deal with “heavy skepticism,” an official tells CNBC<\/em><\/a>.<\/p>\n

On the other side of the aisle, Senator Elizabeth Warren<\/a> (D-MA) has called the Netflix\/WB deal an “anti-monopoly nightmare.” She added, “A Netflix-Warner Bros. would create one massive media giant with control of close to half of the streaming market. It could force you into higher prices, fewer choices over what and how you watch, and may put American workers at risk.”<\/p>\n

At this point, it’s too early to tell if the Netflix\/WB deal will make it past regulators, but it’s clear that both companies should prepare for a rocky approval process.<\/p>\n

What does the Netflix and Warner Bros. deal mean for streaming video?<\/h2>\n

According to data from JustWatch, a combined Netflix and HBO would account for 33 percent of the US streaming video market, putting it ahead of Prime Video’s 21 percent share. As for how the two media companies would co-exist, Netflix says it will “maintain Warner Bros. current businesses,” which includes HBO Max and HBO, theatrical releases for films and well as movie and TV studio operations.<\/p>\n

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