Netflix acquires Warner Bros. Discovery: what does this mean for your TV show tomorrow?
Los Angeles, vrijdag, 5 december 2025.
Imagine: within a year, you could find ‘Game of Thrones’, ‘Friends’, and ‘The Sopranos’ all on one platform—without an additional subscription. Netflix has agreed to acquire Warner Bros. Discovery for $82.7 billion, including HBO Max and a film and television archive entrenched in culture for over a century. The most striking aspect? Netflix promises to keep HBO Max as a standalone service—for now. But it’s the combination of the two that will definitively reshape the global battle for the most popular content. The transaction is not yet complete; a separation of Discovery Global must occur, and approval from regulators is still required. What does this mean for you? Less choice fatigue, but also greater control in the hands of a single company.
The deal that transforms the media world
On Friday, 5 December 2025, Netflix officially announced an agreement to acquire Warner Bros. Discovery for a total of $82.7 billion (€70.97 billion), including the film and television studios, HBO Max, and HBO’s extensive archive [1][2][3]. This transaction, which further intensifies the competition among the largest streaming platforms, represents a profound transformation in the media industry and shifts the balance of power in the digital entertainment landscape [1][2]. The acquisition is a direct outcome of an intense bidding war involving Paramount Skydance and Comcast, with Netflix emerging as the winner [1][3][4]. The deal remains conditional on the separation of Discovery Global—a new company led by current CFO Gunnar Wiedenfels, which includes CNN, TNT Sports, and Discovery+—and on approval from antitrust authorities in the United States and the European Union [1][2][4]. Without these conditions, the deal cannot be finalized, and it is currently considered under review [1][2].
What you can expect on your screen within a year
According to Netflix, HBO Max will be maintained as a separate service in the short term, marking a significant departure from typical industry merger strategies [1][3]. Plans for the next 18 months include preserving Warner Bros.’ current operations, including the theatrical release of new films through 2029—a notable point given Netflix’s historically limited theatrical film distribution [1][3]. The combination of HBO Max and Warner Bros.’ film and television library—including classics such as ‘The Wizard of Oz’, ‘Casablanca’, ‘Citizen Kane’, and ‘Harry Potter’, and popular series like ‘The Sopranos’, ‘Friends’, ‘Game of Thrones’, and ‘The Big Bang Theory’—will deliver unprecedented content diversity [1][2][3]. Netflix anticipates this expansion will significantly strengthen its offering, allowing users to access a vast selection of high-quality content from a single platform [1][3]. Even Netflix-original series such as ‘Stranger Things’, ‘Squid Game’, and ‘Bridgerton’ are expected to be integrated into a refreshed, consolidated content offering [1].
Financial impact and future strategies
The transaction is structured as a cash-and-stock deal, with each Warner Bros. Discovery shareholder receiving $23.25 in cash and $4.50 in Netflix shares per share, resulting in a total value of $27.75 per share [1]. The acquisition is expected to become profitable for shareholders in the second year following completion, with a positive impact on earnings per share [1]. Within three years of closing, Netflix anticipates annual cost savings between $2 and $3 billion, primarily through centralizing technical infrastructure, production, and content management [1]. The financial strategy focuses on integrating the HBO Max platform into Netflix’s existing ecosystem, potentially introducing a new subscription tier—such as Netflix Premium Plus—that includes content from both platforms [1][2]. The estimated price for a consolidated subscription is €13.99 per month, while a hypothetical ‘all-in-one’ model has been mentioned at €40 per month, though this remains unlaunched [2]. As of now, a standard Netflix subscription in the Netherlands costs €16.99 per month, including 4K and surround sound, while the HBO Max 4K subscription is also priced at €16.99 per month [2].
Criticism over concentration of power and competition
Netflix’s acquisition of Warner Bros. Discovery has raised serious concerns among governments and industry groups, particularly due to the unprecedented market power it would grant Netflix [1][3][4]. With over 300 million subscribers worldwide, Netflix is already the largest streaming service, and combining it with HBO Max—whose 128 million subscribers would make it a colossal platform—could create an unmatched digital entertainment giant [1][3]. Representative Darrell Issa (R-Calif.) warned in a letter dated 13 November 2025 that the company holds ‘unparalleled market power’, which could render competition in the content market unsustainable [1]. The Directors Guild of America and Cinema United have expressed concerns that the acquisition could harm the theatrical industry, as Netflix’s past strategy of releasing new films exclusively online has already drawn criticism [1]. Furthermore, there is anxiety that the fragmentation of content in recent years has led to ‘enshittification’—a term describing how platforms drift from their original missions to increase control and profit [2]. One user referenced a scenario in which a €40-per-month ‘all-in-one’ subscription leads to a return to linear TV and downloading content from unauthorized sources [2]. Antitrust authorities in the US and the EU are currently negotiating approval of the deal, with a potential break-up fee of $5 billion if the acquisition is rejected [3].
The future of content and the role of AI in the streaming world
While the acquisition primarily focuses on managing and integrating existing content, its implications for the future of content production and analysis are substantial. The merger of Netflix’s advanced AI algorithms for content recommendation and sales forecasting with Warner Bros.’ vast film and television libraries will lead to an even greater concentration of AI-driven content production in the hands of a few dominant players [1][2]. This integration will enable the use of AI systems to predict successful series, optimize production schedules, and personalize content offerings for millions of users [1][2]. For consumers, this means content selection will increasingly be driven by algorithmic predictions of what is ‘expected’, potentially limiting the diversity of voices in society [1][2]. The acquisition is a clear signal that AI-driven content production and analysis are no longer niche technologies, but core components of the strategy of the largest media conglomerates [1][2].