What the Netflix-Warner Bros. Merger Could Mean for Streaming
After The Wrap first reported yesterday that Netflix had won the bid for Warner Bros., the streaming service confirmed this morning that it would acquire the homes of HBO and HBO Max, DC Comics, and Bugs Bunny for $82.7 billion. The acquisition would end merger attempts by companies like Paramount and Comcast , but the deal is far from finalized.
According to Netflix, the Warner Bros. acquisition will have to be delayed until at least the third quarter of 2026 to make time for the previously announced separation of Warner Bros. and Discovery . Furthermore, the deal must receive regulatory approval. Given these hurdles, the companies expect to “close the transaction in 12-18 months.”
News of the acquisition follows Warner Bros.’ announcement in October that it was open to sale, partly due to its split with Discovery.
What happens next isn’t entirely clear. The Wrap reported that Netflix’s deal with Warner Bros. includes a $5 billion fine if regulators block the deal, indicating some concern on both sides. Relatedly, CNBC reports that a “senior [Trump] administration official” said the government views the merger with “great skepticism,” and The New York Post and Wall Street Journal reported yesterday that Paramount (which recently completed its merger with Skydance Entertainment, led by Trump ally David Ellison) is currently warning the administration against approving the deal.
It’s still unclear how regulators will react to the deal, but if it goes through, it would be a major change for both Hollywood and consumers. Netflix hasn’t yet revealed its exact plans for how the merger will impact its customers, but the company did offer a few hints in its press release. If the Netflix and Warner Bros. merger goes through, here’s how it will affect you.
HBO Max is probably not going away.
Since Netflix’s core business is streaming, the most obvious outcome of the Warner Bros. acquisition will likely be the closure of HBO Max and the incorporation of its content into Netflix. However, it seems more likely that we’ll end up with a situation similar to that between Disney+ and Hulu, with the company operating both services simultaneously.
In a statement announcing the merger, Netflix said it would “preserve the current Warner Bros. operations” and that HBO and HBO Max would be viewed as a “compelling, complementary offering” to its customers.
Whether this means Netflix subscribers will receive additional HBO subscriptions, or will simply be able to add HBO to their plans as extra “content,” is unclear, though I expect the latter interpretation to be correct. After all, Disney charges extra for users who also want to subscribe to Hulu, even as the company is working to shut down the standalone Hulu app . Netflix has little reason not to follow suit.
This is confirmed by another line in the press release, which states: “With the addition of the extensive movie and TV series libraries, as well as HBO and HBO Max programming, Netflix subscribers will have even more high-quality movies to choose from.” This means that HBO is something you’ll add to your existing subscription, not just content that will become part of your basic Netflix subscription. The company states that the acquisition “also allows Netflix to optimize its plans for consumers.”
Some Warner Bros. shows may appear on Netflix
Netflix already offers a small number of series originally produced for HBO or HBO Max, such as Sex and the City and Kingdom of the Dustman . This is due to previous content-sharing agreements, but Netflix may continue to offer some HBO content to its subscribers for free, even if HBO remains a separate company.
For example, the Netflix merger announcement stated that “series and films like The Big Bang Theory , The Sopranos , Game of Thrones , The Wizard of Oz, and the DC Universe will join Netflix’s extensive portfolio.” While this is likely simply an acknowledgment of the acquired intellectual property, I wouldn’t be surprised if a few select series popped up on Netflix from time to time, either to bolster its sparse release schedules or to promote HBO subscriptions/add-ons.
Netflix co-CEO Greg Peters also stated in a press release that “with our global reach and proven business model, we can bring the worlds they [Warner Bros.] create to a wider audience.” He added that this will be an opportunity to attract “more fans to our best-in-class streaming service.”
Netflix is expected to increase production in the US.
While Netflix is primarily known to consumers as an app, its wide selection of original content also allows the company to operate as a production studio. Netflix says it will use the acquisition of Warner Bros.’ production unit to “expand Netflix’s studio capabilities, allowing the company to significantly expand its production in the U.S.”
This means viewers can expect to see more Netflix original content in the future, particularly more American shows in the vein of Stranger Things , along with localized foreign programs like The Squid Game .
Gamers should also pay attention
In addition to its film and TV businesses, Netflix will also acquire Warner Bros. Games, a company representative confirmed to Game Developer . This means the company will now be responsible for publishing both licensed titles, such as the Batman Arkham series, and original games, such as the Mortal Kombat series. Little is known yet about how Netflix will handle the unexpected responsibility for these long-running AAA franchises, but given the company’s recent gaming ambitions and its promise to continue operating Warner Bros. as usual, it’s likely these games will continue to be released in some capacity.
Netflix will also publish DC comics.
Beyond its sudden entry into the AAA market, Netflix’s acquisition of Warner Bros. also means the company gains control of DC Comics’ print business, along with its film and TV businesses, as the publishing house is wholly owned by Warner Bros. This is another significant move for the company, although given that DC’s print business largely serves as the foundation for lucrative intellectual property like Superman and Batman, Netflix will likely work hard to keep things running as smoothly as possible. Still, readers can expect some Netflix-DC synergy, similar to when Marvel began publishing new Star Wars comics shortly after Disney acquired Lucasfilm. Batman visiting the Upside Down from Stranger Things might be more likely than you think.
Don’t expect Warner Bros. movies to hit streaming services right away.
Finally, while previous Netflix releases often relied on direct-to-video distribution, supplemented by enough theatrical releases to qualify for awards, Netflix stated in its press release that it plans to continue distributing Warner Bros. films as usual, “including theatrical releases,” but the exclusive distribution window may be shortened . In other words, Batman 2 probably won’t get the K-Pop treatment of Knives Out or Demon Hunter .