Summary
Overview
Netflix has agreed to acquire Warner Brothers for $72 billion in what is potentially the biggest deal in Hollywood history. Marina Hyde and Richard Osman analyze what this means for consumers, the entertainment industry, cinema, and the future of prestige television. They examine the regulatory hurdles, potential opposition from unions and Hollywood power players, and whether Netflix can successfully integrate Warner's vast content library and production capabilities.
The Deal Details and Why Netflix Wants Warner Brothers
Netflix is paying $72 billion in cash to acquire Warner Brothers, approximately ten times the Paramount deal discussed earlier this year. The acquisition gives Netflix access to an enormous content library including Friends, Harry Potter, Game of Thrones, and the DC Universe, plus HBO Max and Warner's significant TV production business. This move represents both consolidation and diversification for Netflix, de-risking their reseller model while gaining a major content production machine.
- Netflix agreed to pay $72 billion for Warner Brothers, with $63 billion in cash and taking on $10 billion in debt
- The deal gives Netflix the Friends catalog, Big Bang Theory, Harry Potter, Game of Thrones, DC Universe, and HBO Max
- Warner Brothers has a significant TV production business that makes content for multiple platforms, not just HBO
- Netflix has 300 million subscribers while HBO has 120 million, making this a combination of the biggest and third-biggest streamers
" If you buy Warner Brothers, you are getting Friends, you're getting Big Bang Theory, you're getting Harry Potter, you're getting Game of Thrones, DC, you're getting the DC Universe, you're getting HBO Max. They're getting a gaming vertical which they've never really had. "
" I actually will catch up on family things that, for whatever reason, I didn't see at the cinema. So I will this year watch Lilo and Stitch, which I didn't see, which was massive. "
Opposition and Regulatory Hurdles
The deal faces significant opposition from multiple fronts including Trump, Hollywood unions, Bernie Sanders, and essentially all of Hollywood's creative guilds. Trump favored the Ellisons getting the deal due to their MAGA-friendly stance, while unions oppose it because fewer customers means worse terms for creators and workers. The regulatory process will likely take until early 2027 to complete, with antitrust concerns about the biggest streamer acquiring the third-biggest.
- Trump said he will 'definitely be getting involved' and wanted the Ellisons to win because they're more MAGA-aligned
- Writers, directors, and screen actors guilds oppose the deal because fewer customers means worse negotiating power
- The deal has united Trump, unions, Bernie Sanders, and all of Hollywood against it
- Regulatory approval will likely take until first quarter 2027, about 18 months
" The fewer customers there are, if say Netflix and Warner Brothers becomes this sort of mega corporation and one of the few games in town, they are much more able to say take it or leave it. "
" Trump has said, I don't know, that's going to be... He said, I will definitely be getting involved. "
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