Netflix’s proposed $82.7 billion acquisition of Warner Bros. sent shockwaves throughout the entertainment industry, but the story is far from over.
When Warner Bros. Discovery announced it would sell its film studio and streaming service to Netflix, it sparked concern and outrage amongst industry members, competitor studios, regulators, and theater operators. The $82.7 billion powder keg combines the first and fourth largest streaming platforms, Netflix and HBO Max, and brings popular franchises like “Harry Potter” and the DC Universe, classic films like “Casablanca” and “The Wizard of Oz”, small screen sensations like “The Sopranos” and “Game of Thrones”, and streaming hits like “Stranger Things” all under one roof, soliciting monopoly concerns in an industry already beleaguered by increasing rates of consolidated wealth, power, and access.
The fate of Warner Bros. Discovery has been at the forefront of industry discussions since June 2025, when the conglomerate’s president David Zaslav announced that the entertainment giant would separate its film studios and streaming platform from its cable network business, which includes the likes of CNN, Cartoon Network, TNT, and HGTV. The choice of Netflix surprised many in the industry, as the streamer was seen as a longshot behind Paramount Skydance, headed by David Ellison — son of tech mogul Larry Ellison — and NBCUniversal. Tech giants Amazon and Apple also showed interest in buying the studio. Netflix itself had downplayed the possibility as recently as October 2025.
Despite the decision, the studio has a long way to go before joining the ranks of its streaming rival. For one thing, an arduous antitrust battle is sure to follow, as regulators, competitors, and industry stakeholders express concern over the newfound conglomerate’s monopoly potential. An all-out push by Paramount Skydance to undercut the deal further muddies the waters, as Ellison instigated a $108 billion hostile takeover of the studio shortly after the Netflix announcement, kicking off what is sure to be an intense battle for the legacy studio.Inside the deal
The public auction officially kicked off in October 2025, when Warner Bros. Discovery rejected three takeover bids by Paramount Skydance in favor of a broadened search that included Comcast, Netflix, and other industry giants. According to Reuters, October was a major milestone for Paramount, as it hoped to strike a deal before Warner Bros. Discovery separated its cable and film businesses, which would make it more difficult for Paramount Skydance’s joint model to gain steam.
Prior to the announcement, Netflix was largely seen as a dark horse, with most observers believing Comcast and Paramount Skydance were in pole position. But for David Zaslav, Netflix’s deal made the most financial sense, offering investors a valuation $12 billion higher than its market capitalization and a lucrative $5.8 billion insurance policy should the deal fall through – one of the largest in M&A history.
Another major driver was the immediacy of the deal’s benefits. Comcast, reportedly the runner up to Netflix in the sweepstakes, had proposed a years-long overhaul of the company’s structures, merging WBD’s entertainment division with NBCUniversal to create a larger company, similar to Disney. Paramount, meanwhile, had raised its offer to $30 per share, for an equity value of $6 billion higher than Netflix, but Zaslav & Co. reportedly rejected the deal due to financing and debt concerns.Monopoly concerns abound
Following the deal, regulators, industry members, and competitors sounded the alarm concerning Netflix’s monopoly potential. Massachusetts Senator Elizabeth Warren, for exampled, called the deal “an anti-monopoly nightmare”, noting it creates “one massive media giant with control of close to half of the streaming market.
