Netflix has struck a massive $83 billion deal to acquire Warner Bros Discovery, a game-changing move that could dramatically reshape the global entertainment industry — if it survives regulatory scrutiny on both sides of the Atlantic.
The deal, confirmed this week, saw Netflix beat out heavyweights like Paramount Skydance and ComcastUniversal. If finalized, it would give Netflix control over Warner Bros’ film and TV assets — including massive franchises like Harry Potter, Batman, and Game of Thrones — and make it a major player in theatrical film distribution, a space the streamer has previously treated as secondary.
To clear the path for the merger, Warner Bros. is set to split its publicly traded operations next summer. The move will separate its film and streaming divisions — which will go to Netflix — from Discovery Global, which includes traditional cable channels like CNN and its publishing arm.
Netflix co-CEO Ted Sarandos acknowledged the surprise surrounding the acquisition. Speaking with analysts, he explained that while Netflix has typically grown through original development rather than big acquisitions, this opportunity was too significant to pass up.
“We understand these assets we’re buying,” Sarandos said. “This is a rare opportunity… to bring people together through great stories.”
He emphasized that past failed media mergers were often orchestrated by companies with little understanding of the entertainment business — a trap he insists Netflix will avoid.
But while Netflix is riding high on a wave of success, this merger still faces significant hurdles. In the U.S., regulators will have to sign off, and some lawmakers are already sounding the alarm. Sen. Mike Lee (R-UT) took to X to warn that the merger raises serious antitrust concerns.
In the European Union, regulators will also scrutinize the deal. Experts say approval is likely but expect demands for concessions. The EU is known for requiring “remedies” rather than outright blocking deals. A formal “Phase II” investigation will follow once Netflix submits the final acquisition details, which could take a minimum of 90 days.
Industry figures are also weighing in. Actress Jane Fonda criticized the merger in an op-ed, claiming it threatens free speech and democracy. Cinema United, a trade group for movie theater owners, also warned the deal could jeopardize the future of the theatrical experience.
While the deal has yet to be finalized, its potential impact on Hollywood — and beyond — is already generating fierce debate and intense scrutiny.
