Netflix To Acquire Warner Bros. Studio and Streaming Business

LOS ANGELES, CA – Netflix announced on Friday that they have struck an agreement to buy Warner Bros. Discovery in a $72 billion deal.

The streaming giant would acquire Warner Bros. film and streaming services, combining with one of Hollywood’s oldest movie studios that is expected to bring a shakeup to the entertainment industry.

Warner Bros. outlined plans earlier this year to separate its studios and streaming services, which Netflix would be acquiring, from its global networks such as CNN and Discovery which will go under a separate category.

The deal would consolidate Netflix with HBO and HBO Max’s library, making it by far the largest streaming service if approved by regulators. The merger would need to be approved by antitrust regulators like the U.S. Department of Justice and the Federal Trade Commission.

Many critics are calling out the merger due to its potential effects on the movie theater industry as Netflix’s business model prioritizes streaming distribution over theater releases.

Other companies, including Paramount and Comcast were looking to strike the same deal with Warner Bros., but the company ultimately opened up to Netflix.

Cameron Ricciardi is a third-year majoring in Telecommunications & Media Industries, to contact him email cjr6818@psu.edu