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Netflix shocked Hollywood on Friday, announcing a $72 billion deal to buy Warner Bros. and HBO, a move that could fuse one of the biggest streamers with one of the most iconic studios in the world.
If it goes through, the merger would reshape the entertainment industry at a time when streaming profits are thin, cable is fading, and studios are still recovering from strikes. But first, regulators in the U.S. and abroad will dig into the deal, and that fight could get messy.
A plot twist for Hollywood
Warner Bros. Discovery (WBD), which also owns CNN, says it still plans to split into two separate companies in 2026. Netflix would acquire the Warner half, home to HBO and the film studio, while the Discovery Global half would keep CNN and the cable channels.
The surprise wasn’t just the deal itself, but who won. For weeks, Paramount was considered the frontrunner. Then Netflix swooped in with two aggressive offers that suddenly pushed it to the top.
Politics heat up
The Trump administration will review the merger, and politicians are already raising red flags. Sen. Mike Lee warned the deal could pose major antitrust concerns.
Netflix argues the opposite, that combining its global reach with Warner Bros.’ century-old storytelling tradition will boost creativity, not kill competition. The company even promised to keep Warner’s theatrical releases alive, hoping to ease pushback from cinema owners.
End of the streaming wars?
Analysts say if regulators approve the deal, Netflix becomes the clear dominant force in global entertainment. One Bank of America report put it bluntly: the streaming wars would be “effectively over.”
The bidding may be finished, but the battle in Washington is just beginning, and Hollywood is bracing for whatever comes next.
*Source: CNN
