Netflix to Acquire Warner Bros.Discovery in Landmark Deal, Sparking Industry Outcry
LOS ANGELES - December 13, 2025 - Netflix has reached a deal to acquire Warner Bros. Discovery, a move poised to reshape the entertainment landscape and already drawing fire from theater owners and rival bidders. The acquisition, the financial terms of which were not immediately disclosed, combines Netflix’s streaming dominance with Warner Bros. Discovery’s vast library of film and television content, including iconic titles like Casablanca, Citizen Kane, and Friends.
The deal marks a significant escalation in media consolidation, coming as large mergers and acquisitions (M&A) experience a resurgence under the current management.It also represents a potential turning point for Netflix, which has faced challenges in building sustainable franchises beyond hits like Stranger Things, KPop Demon Hunters, and Squid Game. Netflix co-CEO Ted Sarandos highlighted these homegrown successes, stating they will now be paired with Warner’s extensive catalog.
However, the agreement has ignited immediate backlash. Theater owners express concern that a combined Netflix-Warner Bros. entity will further prioritize streaming over theatrical releases,potentially diminishing the cinema experience. More intensely, David Ellison and his father, Larry Ellison – whose Paramount-Skydance bid was widely considered the frontrunner – are reportedly contesting the deal. Larry Ellison, a long-time Republican donor and Oracle cofounder, has allegedly been lobbying Washington officials, with allies raising antitrust and national-interest concerns about Netflix gaining control of a major studio. David Ellison has reportedly met with Trump administration officials as part of this effort.
Netflix is attempting to preempt regulatory hurdles by arguing that a combined Netflix-HBO Max bundle will increase competition with Disney and other streaming services.The outcome of this deal will serve as a key test of the Trump administration’s approach to large-scale mergers, particularly given the Ellisons’ unsuccessful bid and their connections to the White House.
The author previously worked internally at Netflix from June 2024 through July 2025.
