Netflix has announced the acquisition of Warner Bros., including its film and television studios, HBO Max and HBO, in a deal valued at $82.7 billion. This agreement will take full effect after Warner announces the separation of its Motion Picture Studios/Streaming and Global Networks divisions into two independent companies, a process expected to be finalized in the third quarter of 2026.
With this purchase, the streaming giant gains control of some of the most influential brands in modern culture: “DC Comics,” “Looney Tunes,” “The Lord of the Rings,” “Harry Potter,” “Game of Thrones,” “Cartoon Network,” “Adult Swim” and more.
Part of the complexity of this acquisition is that Netflix’s cash and stock transactions are valued at about $27.75 per Warner Bros. Discovery share. Netflix will also take another $10 billion in Warner Bros. debt, and Warner’s cable channel, including CNN, TNT, and HGTV, are not included in the deal. They will form a new publicly traded company, Discovery Global, in mid-2026.
Netflix’s co-CEO, Ted Sarandos, has said that Warner Bros. films will continue to receive theatrical releases. However, the exclusivity window (the period in which films are available only in cinemas) will be much shorter. “My objection has primarily been against these very long exclusivity windows, which we don’t really think are very consumer-friendly,” he said.
Even if they say that they will respect releases and productions that are already made, there is no guarantee the company will continue to pursue theatrical distributions in the long term. Especially because Sarandos has always been open about his opinion on movie theaters, calling them “outdated.”
This move has shaken the cinema industry, which is already undergoing an uncertain transformation. For theaters, survival depends on offering unique experiences that streaming cannot simply replicate.
Hollywood’s reaction has been far from positive. The Directors Guild of America, led by Christopher Nolan, an acclaimed director and one of the most vocal defenders of theatrical cinema and physical media, plans to meet in the upcoming weeks to discuss everything that this agreement may entail. Concerns about creative autonomy, industry competition and the future of moviegoing can be expected to dominate the conversation.
If the clause on theatrical releases is really upheld, that would be great. But it is also clear that Netflix is no longer going to limit itself to that.
It’s tempting to imagine this acquisition as an opportunity for Netflix to rethink its stance on theatrical exhibitions. Perhaps films like “Frankenstein” will be treated as works meant for the big screen. But it is hard to not feel pessimistic. And even before this sale, there were already fears about reduced competition and the threat of monopoly within the entertainment industry.
Audiences want more studios competing against each other to offer the best quality content. Netflix, however, has been built on convenience over the communal experience of cinema. Some may argue this deal will give viewers more access at a lower price, but Netflix’s own history of price increases suggests otherwise. Netflix is no longer just a streaming service; it is now part of the film industry with it shaping the future of film itself.
