The battle for Hollywood is heating up in the US, as streaming giant Netflix has announced its intention to acquire Warner Brothers Discovery, one of the world's oldest film studios. The deal, valued at $82.7 billion, includes a $72 billion main payment and the rest to cover Warner’s debts.
The potential merger could be one of the largest in entertainment industry history. Netflix currently boasts more than 300 million paid subscribers in over 190 countries, while Warner operates HBO Max with 180 million users. If the deal is approved, the combined company would control over a third of the US streaming market.
Yet, the acquisition faces significant political and ideological obstacles. Netflix is seen as progressive, while the current US administration is more conservative. Other bidders, notably Skydance led by David Ellison—son of Oracle’s founder and close ally of Donald Trump—also competed to acquire Warner, offering $30 per share. Warner ultimately rejected the Skydance bid due to political concerns and reluctance to hand over control of CNN to a conservative management.
The Netflix deal is under threat of antitrust investigation. Creators’ unions, theater associations, and some politicians argue that such a merger could reduce content diversity and competition. Senator Elizabeth Warren has called for the US Department of Justice to scrutinize the proposed consolidation closely.
Meanwhile, Skydance is initiating a hostile takeover with the support of key investors, including Jared Kushner, Trump’s son-in-law, promising Trump changes at CNN. This injects a new political dimension to the deal, making control of major media assets a hot topic ahead of the US elections.
Industry experts and stakeholders await regulatory decisions in the coming weeks. The future of Hollywood and content diversity rests with shareholders and ongoing political developments in Washington.
