Netflix Will Acquire Warner Bros. In Move That Will Reshape Hollywood

It seems to be official: Netflix is buying legendary movie studio Warner Bros. We've been warning of the consequences of Warner Bros. being put up for sale yet again, how it would completely alter the movie industry as we know it, bringing job loss, consolidation, and increased prices for the consumer, not to mention putting a huge question mark on the very future of theatrical releases. 

In the end, the two contenders to scoop up the studio were Netflix, decidedly not of the theatrical model and the platform responsible for dumbing down cinema with its "second screen" approach, and Paramount Skydance. Netflix is now the winner of the bidding war, and has announced they've "entered into a definitive agreement under which Netflix will acquire Warner Bros., including its film and television studios, HBO Max and HBO." This stands in contrast with Paramount's offer, which was for the entire Warner Bros. Discovery company instead of just the studio and streaming platform. 

Per the official press release sent out this morning, "The cash and stock transaction is valued at $27.75 per WBD share (subject to a collar as detailed below), with a total enterprise value of approximately $82.7 billion (equity value of $72.0 billion). The transaction is expected to close after the previously announced separation of WBD's Global Networks division, Discovery Global, into a new publicly-traded company, which is now expected to be completed in Q3 2026." 

While some details still need to be worked out, one thing is clear: one way or another, Warner Bros. as we know it is coming to an end, and Hollywood will never be the same.

Of course, the sentiment to this news is not very positive. The Directors Guild of America immediately announced plans to meet with Netflix over "significant concerns" over the acquisition (via Deadline), and they are likely not going to be the last union to comment on the acquisition and meet to discuss further action.

Sure, Netflix winning the bid over Paramount and its ties to the government is the lesser of two evils, but it is still unsettling news that could spell potential doom for the industry at large. For one, there's the elephant in the room regarding Netflix's plans for the theatrical experience, as the studio has notoriously waged a war against movie theaters, even if they have started to back down a tiny bit recently. Sure, the press release by Netflix promises that they will maintain Warner Bros.' current operations, and they will "build on its strengths, including theatrical releases for films," but how long will that last? Will Netflix keep the theatrical window or shrink it to the point where it starts affecting the box office, using that as an excuse to pull movies from theaters altogether?

There is also the matter of consolidation and how that will shrink the industry. Netflix is promising that the acquisition will enhance Netflix's production capacity and over the long term "create jobs and strengthen the entertainment industry," but if the past decade has shown us literally anything is that shrinking productions are here to stay, and no studio merger has resulted in more jobs. We'd like to try to stay positive and hope for the best possible outcome here, but as of right now, things don't look great for the movie industry.