NEW YORK CITY, New York: Netflix's move to acquire Warner Bros. Discovery in a US$72 billion deal marks the biggest attempted consolidation yet in the streaming era, positioning the company to own both one of Hollywood's most storied studios and a major rival platform in HBO Max.

The agreement, announced December 5, could significantly redraw the entertainment landscape if regulators sign off.

The cash-and-stock offer values Warner at $27.75 per share and gives the company a total enterprise value of $82.7 billion, including debt. The deal is expected to close within 12 to 18 months, after Warner completes the planned separation of its cable networks, such as CNN and Discovery, which are not part of the transaction.

If approved, Netflix would gain Warner's television and film divisions — including DC Studios — alongside HBO and HBO Max. Netflix said the combination would offer members "even more high-quality titles" and help "optimize its plans for consumers."

Mike Proulx of Forrester said the tie-up would cement Netflix as the industry's dominant force. "Netflix is the top streaming service today. Now combined with HBO Max, it will absolutely cement itself as the Goliath in the streaming industry," he said.

A key unknown is whether Netflix and HBO Max would remain separate apps or merge into one platform. Proulx said either outcome could bring price relief through bundles or a single subscription, though rising regulatory hurdles make the merger's future uncertain.

Some analysts warned the combination could reduce content diversity and trigger job losses. Gaining Warner's legacy studios would also shift Netflix's role in theatrical releases. Netflix pledged to continue honoring Warner's existing commitments to theaters, including traditional rollouts for upcoming films. The streamer's own approach to theatrical releases has been limited, with exceptions for awards contenders and select event screenings.

Netflix co-CEO Ted Sarandos said the merger would "give audiences more of what they love," while Warner CEO David Zaslav said it would "ensure people everywhere will continue to enjoy the world's most resonant stories."

Opposition surfaced quickly from industry groups. Cinema United, representing more than 30,000 U.S. screens and 26,000 abroad, said the merger "poses an unprecedented threat to the global exhibition business," warning that "theaters will close, communities will suffer, jobs will be lost." The Writers Guild of America also urged regulators to block the deal.

In Washington, the proposed acquisition drew criticism across party lines. Senator Elizabeth Warren called it "an anti-monopoly nightmare," while Senator Roger Marshall said it raised "serious red flags for consumers, creators, movie theaters, and local businesses alike."

The deal follows a months-long bidding process in which Paramount, now owned by Skydance after an $8 billion merger, and Comcast also expressed interest. Paramount's bids reportedly covered all of Warner, including its cable and news businesses, which could have tied CBS and CNN under the same umbrella.

Regulatory scrutiny is expected to be intense. Christina DePasquale of Johns Hopkins University said the government may hesitate to approve a single streaming giant with control over both production and distribution.

Warner signaled openness to a sale in October, citing unsolicited interest. Once the merger is completed, its cable assets will form Discovery Global, expected to become a separately traded company by the third quarter of 2026.