By Joseph Cunningham
The Netflix and HBO Max logos, 2025.
Last week Netflix announced that it and Warner Bros. Discovery had reached a merger agreement for $27.75 a share, or $72 billion total, in addition to taking on $10 billion in debt. The deal does not include cable networks owned by Warner Bros. Discovery, such as TNT or CNN. These will be sold and auctioned separately.
The merger would allow Netflix access to hundreds of different IPs, ranging from Harry Potter, Looney Tunes, Game of Thrones, and even the vast characters and stories of the DC universe. Netflix is capable of using these IPs in many different ways. HBO Max, owned by Warner Bros. Discovery, would also therefore be acquired by Netflix. This means that the entire HBO library could be put on Netflix.
Netflix is also now in charge of producing new content with these IPs. Netflix has said they “expect to maintain Warner Bros. current operations and build on its strengths.” Netflix claims the merger over the long term will create more jobs and create a greater value for talent by offering more opportunities to work with many different IPs.
Of course, this deal would be most valuable for Netflix shareholders. By offering a larger library full of popular IPs both new and old, the Netflix board expects to attract new customers and retain current customers for a longer period. With company estimation being they “expect to realize at least $2-3 billion of cost savings per year.
However, the merger has received much criticism. Democratic Senator, Elizabeth Warren, called it “an anti-monopoly nightmare,” warning that a media giant that owns close to half the market could threaten Americans with higher subscription rates and fewer choices on how they watch something. With this merger, Netflix would own 30 percent of the market.
The writers guild of America also put out a statement calling for political action, saying the merger “must be blocked.”
“The world’s largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent. The outcome would eliminate jobs, push down wages, worsen conditions for all entertainment workers, raise prices for consumers, and reduce the volume and diversity of content for all viewers. Industry workers along with the public are already impacted by only a few powerful companies maintaining tight control over what consumers can watch on television, on streaming, and in theaters.”
The streaming industry has already seen lots of buy outs and consolidation. Disney now fully owns Hulu as of June 2025, as well as Skydance Media buying Paramount, adding another company to the Ellison family’s corporate umbrella.
Even President Donald Trump has said the proposed merger “could be a problem.” Trump says that there is a process to things and we will see what happens. Because this deal doesn’t involve any broadcast stations, only streaming services and IPs, the deal doesn’t need to go through the Federal Communications Commission. However, it may still require approval from the Justice Department’s antitrust division.
While Netflix seems certain that the deal will go through, Paramount launched a counter bid at $30 per share with backing from Trump’s son. The Ellison family has always had a close relationship with Trump and his administration. We now wait to see if legal action will be taken to block the merger.