Netflix Shakes Up Hollywood with Warner Bros. and HBO Acquisition

Netflix has announced a major deal to acquire Warner Bros. and HBO, in what could be one of the biggest changes in Hollywood in years. The streaming giant will purchase the legendary studio and its assets, including HBO Max, for $72 billion plus debt. The news was shared Friday morning and immediately caught the attention of the entertainment world.

If approved, the acquisition would merge one of the largest streaming platforms with one of the most famous traditional movie and television studios. Netflix says the deal could help it expand production in the United States and offer a larger library of content to subscribers, while also saving $2 to 3 billion per year by the third year.

Warner Bros. Discovery, the parent company of Warner Bros., HBO, and CNN, is planning to split into two separate publicly traded companies in 2026. Netflix will acquire the part that includes Warner Bros., HBO, and other entertainment assets. The other half, called Discovery Global, will hold CNN and other cable channels. WBD expects the split to be completed in the summer of 2026.

The deal still faces a thorough review by regulators in the United States and other countries, and it is not yet final. Other media companies, including Paramount and Comcast, had also submitted offers for Warner Bros. Discovery and could continue to compete for parts of the business.

According to Netflix, the company will keep Warner Bros.’ current operations and theatrical releases intact. The combined assets are expected to lower costs for consumers while giving Netflix a much larger production footprint.

“This deal has the potential to reshape Hollywood,” a Netflix spokesperson said, emphasizing the scale of the merger. Industry analysts say the acquisition could mark a turning point for both streaming services and traditional media companies.

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