–Michael Lyles, B1Daily

Netflix has made a significant move in the entertainment industry by acquiring Warner Bros. Discovery, marking one of the most high-profile deals in the streaming and media landscape. This acquisition has been described as a major departure from industry norms, considering that Warner is a Hollywood movie studio and that Netflix has no official plans for regular film releases with major theaters.

The deal valued at an estimated $82 billion. The acquisition includes Warner Bros. Studios, the DC Comics film and TV franchise, as well as the vast content library, including blockbuster films like The Matrix and Harry Potter and popular TV shows like Game of Thrones and Friends. Netflix plans to capitalize on Warner Bros’ vast intellectual property through both streaming and licensing deals. In addition, the potential for creating original content based on established franchises like DC Comics could generate new subscriber growth.

Despite the merger, Warner Bros will maintain its iconic brand name within Netflix’s content production side.

This acquisition significantly strengthens Netflix’s content library, adding well-known IPs, film franchises, and TV series that could potentially fuel new original content or reboots for Netflix’s platform. With the online service absorbing Warner Bros, Netflix now directly competes with other major players like Disney Plus, Amazon Prime Video, and Apple TV, further consolidating its position as the leading global streaming service.

There is a strong focus on integrating Warner Bros.’ legacy content with Netflix’s existing programming. In particular, there are plans to reboot or expand certain franchises into new formats like series or films exclusive to Netflix.

David Zaslav, the CEO of Warner Bros. Discovery known for his canceling releases of many fan favorites like Bat-woman, stepped down following the completion of the acquisition, with Netflix executives assuming leadership and overseeing the integration process. Some of Warner Bros.’ traditional business operations, such as film production and television distribution, are now streamlined under Netflix’s global content umbrella. While profitable producers like James Gunn and Peter Safran were predictably retained, receiving new contract extensions up to 2027.

The deal has attracted the attention of regulatory bodies. As Netflix becomes even more dominant, there are discussions about potential monopolistic behavior in the streaming industry. Regulators in the US and Europe are expected to scrutinize the merger, particularly concerning content control and subscription prices.

Netflix’s stock surged following the announcement of the deal, as investors see the acquisition as a bold move to solidify Netflix’s position in the global entertainment market. However, some analysts are concerned about the long-term financial viability of absorbing such a massive content portfolio.

While fans of physical media fear the merger could mean the end for physically owned media.

—Michael Lyles, B1Daily