What the Netflix/Warner Bros. Merger Could Mean for Streaming

After initial reporting from The Wrap yesterday revealed that Netflix had won the bidding war for Warner Bros., the streamer stepped in this morning to confirm that it will be acquiring the home of HBO and HBO Max, DC Comics, and Bugs Bunny for $82.7 billion. The acquisition would put an end to merger attempts from the likes of Paramount and Comcast, but it's also far from a done deal.

According to Netflix, its acquisition of Warner Bros. will need to wait until at least Q3 2026, to allow room for the previously announced Warner Bros. and Discovery split to go through. Additionally, the deal will need to go through regulatory approval. Given these roadblocks, the companies expect "to close in 12–18 months."

The news of the acquisition follows Warner Bros.' announcement in October that it was open to a sale, at least partially motivated by its split with Discovery.

What happens next isn't entirely clear. The Wrap reported that Netflix's deal with Warner Bros. includes a $5 billion breakup fee in case regulators block the deal, pointing to some anxiety from both companies. To that end, CNBC is reporting that "a senior [Trump] administration official" has said that the government is looking at the merger with "heavy skepticism," and The New York Post and the Wall Street Journal both reported yesterday that Paramount (which recently completed its own merger with Skydance Entertainment, led by Trump ally David Ellison) is currently warning the administration away from allowing the deal.

How regulators will respond to the purchase remains to be seen, but if the deal does go through, it will mark a major shift for both Hollywood and consumers. Netflix hasn't laid out complete plans for how the merger would affects its customers, but in its press release, it has offered a few hints. Should a combined Netflix and Warner Bros. come to pass, here's how you can expect it to affect you.

HBO Max probably isn't going away

Since Netflix's primary business is as a streaming app, the most obvious result of a Warner Bros. acquisition would probably be the shuttering of HBO Max, and the inclusion of its content into Netflix proper. However, it seems like we're more likely to get a Disney+/Hulu situation, with the company running both services simultaneously.

In its post announcing the merger, Netflix said it will "maintain Warner Bros.' current operations," and that HBO and HBO Max would be viewed as a "compelling, complementary offering" for its customers.

Whether that means Netflix subscribers will get complementary HBO subscriptions, or if they will simply be able to add HBO onto their plans as complemental "content," is unclear, although I would expect the latter interpretation to be the correct one. After all, Disney charges an additional fee for users who also want to subscribe to Hulu, even as it's working on killing the standalone Hulu app. There would be little reason for Netflix to not follow suit.

This is backed up by another line further into the press release which states that, "[b]y adding the deep film and TV libraries and HBO and HBO Max programming, Netflix members will have even more high-quality titles from which to choose." That implies HBO is something you'll add to an existing subscription, rather than content that will just become part of a base Netflix subscription, with the company saying the acquisition "also allows Netflix to optimize its plans for consumers."

Some Warner Bros. shows might come to Netflix

Netflix already offers a small smattering of shows originally developed for either HBO or HBO Max, such as Sex and the City and Scavenger's Reign. This is due to pre-existing content sharing agreements, but it's possible Netflix may continue to offer some HBO content to its existing subscribers for free, even if it continues to operate HBO as a separate entity.

For instance, Netflix says in the merger announcement that "shows and movies such as The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz and the DC Universe will join Netflix's extensive portfolio." While this is likely simply acknowledging acquired IP, I wouldn't be surprised to see some select shows hit Netflix from time to time, either to prop up sparse release schedules or to promote HBO subscriptions/add-ons.

Netflix co-CEO Greg Peters also says in the release that, "[w]ith our global reach and proven business model, we can introduce a broader audience to the worlds they [Warner Bros.] create." He adds this would be an opportunity to attract, "more fans to our best-in-class streaming service."

Expect Netflix to ramp up U.S. production

While Netflix is most known to consumers as an app, its large selection of original content also means that it operates as a production studio. Netflix says that it will use the acquisition of Warner Bros. production side to "enhance Netflix's studio capabilities, allowing the Company to significantly expand U.S. production."

This means that viewers might expect to see more original Netflix content in the future, specifically more American-made shows in the vein of Stranger Things, alongside localized foreign programming like Squid Game.

Gamers need to pay attention too

Alongside its movie and TV businesses, Netflix will also be acquiring Warner Bros. Games, a spokesperson confirmed to Game Developer. That means the company will now be responsible for publishing both licensed works, such as the Batman Arkham series, as well as gaming originals, like the Mortal Kombat series. Little is known about how Netflix will handle suddenly being in charge of these longstanding AAA series, but given the company's recent gaming ambitions and its promise to continue Warner Bros. operations as usual, it's likely these titles will continue in some capacity.

Netflix will also publish DC Comics

In addition to suddenly stepping into big-budget, AAA gaming, Netflix's acquisition of Warner Bros. also means it's getting control of DC Comics' print business alongside its film and TV businesses, as the publisher is wholly owned by Warner Bros. That's another big step for the company, although given that DC's print business serves largely as the foundation of lucrative IP such as Superman and Batman, it's likely Netflix will do its best to keep operations there as smooth as possible. However, readers might expect some Netflix and DC synergy, similar to when Marvel started publishing new Star Wars comics shortly after Disney acquired Lucasfilm. Batman visiting the Upside-Down from Stranger Things might be more likely than you'd think.

Don't expect Warner Bros. movies to go straight to streaming

Finally, while Netflix's past movie releases have often relied on direct-to-streaming drops complemented by just enough of a theatrical presence to qualify for awards, Netflix said in its release that it plans to continue distributing Warner Bros. produced movies as usual, "including theatrical releases for films," but that the exclusive theatrical window may shrink. In other words, The Batman 2 probably isn't going to get the Knives Out or KPop Demon Hunters treatment.