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What appears to be a straightforward merger possesses all the elements of a captivating Hollywood drama: a deep-pocketed and influential acquirer, political machinations, and numerous suspenseful moments.
Netflix’s proposed acquisition of Warner Brothers Discovery’s esteemed movie studio and its popular HBO streaming networks represents a real-world narrative of a dominant force asserting its power.
However, with regulatory bodies and competing entities closely monitoring the situation, this is likely just the opening chapter of a larger saga.
As the narrative unfolds, here are five key aspects to observe.
Netflix has been steadily advancing its position in Hollywood for several years, establishing itself as the world’s foremost streaming subscription service and the largest producer of new content in California.
This prospective deal—the most significant industry transaction in recent years—would solidify its position as the leader, granting the company access to a catalog spanning nearly a century and augmenting its already formidable production capabilities.
Moreover, it would substantially increase its subscriber base, as Netflix prepares to incorporate HBO’s 128 million subscribers into its existing base of over 300 million.
“Netflix is already the largest streaming service, and the addition of HBO Max would make it virtually unassailable,” noted Mike Proulx, Vice President at research firm Forrester.
The transaction would unite beloved historical franchises such as Looney Tunes, Harry Potter, and Friends, alongside HBO’s acclaimed series like Succession, Sex and the City, and Game of Thrones, under the same banner as Netflix’s distinctive content, including Stranger Things and KPop Demon Hunters.
The acquisition also encompasses TNT Sports operations outside the United States.
Netflix anticipates finalizing the deal within the next 12 to 18 months.
However, executives remain circumspect regarding the specifics of how—or if—they intend to integrate Warner Brothers and its flagship HBO brand into the existing Netflix service.
Netflix Co-CEO Greg Peters acknowledged the “powerful” nature of the HBO name, stating that it would provide the company with “numerous options,” but refrained from elaborating further.
Netflix could potentially package films and programs into various bundles, although analysts suggest that the complete disappearance of the HBO brand would be unexpected.
The impact on pricing also remains uncertain.
Netflix’s dominance could afford it the opportunity to increase customer charges. Conversely, consumers might benefit from paying for a single streaming service rather than two.
Warner Bros. is one of the studios that shaped Hollywood, creating classics such as Casablanca, Gone with the Wind, and The Exorcist.
But this takeover exemplifies the waning influence of cinema’s golden age.
The trajectory is clear, according to Forrester’s Mr. Proulx: the future is “all-streaming.”
“With this deal, it’s official: legacy media is ending.”
Netflix has committed to continuing the theatrical release of films, a decision that is logical given its acquisition of the DC superhero franchise, whose films typically perform well in cinemas.
However, not everyone is convinced that this will remain a priority for the streamer.
Earlier this year, Netflix Co-CEO Ted Sarandos expressed his belief that movie-going was an “outdated concept.” This consolidation also touches a nerve in an industry already grappling with prior job cuts, declining productions, and the threat of artificial intelligence.
Titanic director James Cameron was among numerous Hollywood figures who expressed dismay at the deal, warning shortly before its announcement that he believes it will prove to be a “disaster” for the industry.
The completion of the deal is far from assured.
First, Warner Brothers Discovery must finalize the spin-off of the parts of its business that it is not selling to Netflix, including CNN, Discovery, and Eurosport.
Meanwhile, rival suitor Paramount Skydance, which had hoped to acquire the entire Warner Brothers Discovery business, may yet attempt to persuade shareholders that it can offer a superior alternative.
The most critical question, however, is whether the deal will receive approval from competition regulators in the United States and Europe—a prospect that could present a significant challenge.
In Washington, lawmakers from both parties have already voiced opposition to the deal, citing concerns that it will lead to fewer choices for consumers and higher prices.
Mr. Sarandos stated that Netflix, which would be required to pay Warner Brothers $5.8 billion if the deal were to fall through, is “highly confident” that it will secure approval.
The outcome will partly depend on how regulators define the competitive landscape, according to Jonathan Barnett, a professor at the University of Southern California Gould School of Law.
If regulators focus solely on video streaming, Netflix’s increased market share could raise significant red flags. However, if regulators adopt a broader definition that includes cable and broadcast television, and even YouTube, as Netflix’s competitors, “the concentration concerns become less and less,” he explained.
Rebecca Haw Allensworth, a professor at Vanderbilt Law School, suggested that a merger of this nature would typically be a “clear-cut case for a challenge,” typically aimed at securing better terms for consumers.
However, she expressed concern that the Trump administration might exert pressure on Netflix regarding issues such as diversity and political bias, as has occurred in other cases.
The impending question is whether President Donald Trump will intervene.
His administration has pledged a lighter regulatory touch and a more hands-off approach to deal-making.
However, the president has publicly praised Paramount Skydance’s owners, the tech billionaire and Republican donor Larry Ellison and his son David, who are behind the rival bid for Warner Bros. Moreover, Trump has consistently demonstrated a strong interest in the media and entertainment industry.
While there has been no official comment from competition regulators in the United States, a senior Trump administration official informed CNBC that it views Netflix’s bid for Warner Bros. with “heavy skepticism.”
The Streamer Awards organiser said the negatives of her online role made it hard to enjoy the job.
The major Hollywood deal means Netflix will takeover ownership of franchises including Harry Potter and Game of Thrones.
Tinsel Town, starring Kiefer Sutherland, is shown to Knaresborough residents before its official release.
Staff at the historical house hope the new Netflix horror will entice a new generation to visit.
Shah Rukh Khan and fellow actor Kajol were in London for the unveiling of a new statue of them.
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