New York Post·2025-12-05 17:40Core Viewpoint - Netflix plans to acquire part of Warner Bros. Discovery in a $72 billion deal, which could significantly impact the entertainment industry, particularly streaming services [1][4]. Company Overview - The acquisition will include Warner Bros. Discovery's film and TV studios, HBO, and HBO Max, potentially combining over 400 million streaming subscribers and a vast content library [1][5]. - Netflix and HBO platforms will operate separately, but the merger could allow for a diverse range of content, including Netflix's hits and Warner Bros. classics [2][9]. Market Impact - The deal is expected to close after Warner Bros. spins off its Discovery Global business in Q3 2026, raising antitrust concerns [4][16]. - Netflix and HBO Max are currently the No. 1 and No. 4 streaming services globally, with approximately 300 million and 130 million subscribers, respectively [5][12]. Consumer Value - Netflix executives claim the deal will enhance consumer choice and value, providing subscribers with a broader selection of titles, although subscription price changes remain unclear [6][8]. - There is speculation that Netflix may adopt a bundling strategy similar to Disney, offering combined subscriptions for Netflix and HBO Max [8]. Competitive Landscape - The acquisition will allow Netflix to leverage Warner Bros.'s brands and properties, such as DC Comics and major franchises, to better compete with other industry giants like Disney [9][12]. - Paramount has expressed concerns about the merger, arguing it could reduce competition and has engaged with lawmakers to challenge the deal [12][15]. Regulatory Scrutiny - The deal is anticipated to face intense regulatory scrutiny from U.S. and international officials, with discussions already taking place at the White House regarding antitrust implications [12][16]. - Filmmakers have raised alarms about the potential impact on the theatrical marketplace, suggesting that the merger could stifle competition in Hollywood [17].