Netflix’s $72bn Purchase Bid Triggers Concerns Over Consumer Choice

Per Al Jazeera, Netflix’s offer values Warner Bros Discovery at $27.75 a share, combining $23.25 in cash and approximately $4.50 in Netflix stock for each share. When including debt, the transaction totals roughly $82.7bn. As part of the agreement, Netflix has put forward a $5.8bn breakup fee while Warner Bros Discovery would owe $2.8bn if the merger fails.

The acquisition would grant Netflix ownership of global franchises such as “Game of Thrones,” “DC Comics” and “Harry Potter,” dramatically expanding its content library. The company expects annual cost savings of up to $3bn within three years of the merger closing. Warner CEO David Zaslav is set to step down after the transition, per Al Jazeera.

However, the proposal has triggered mounting concerns from Hollywood workers, lawmakers and analysts. Critics warn that absorbing a major competitor could diminish creative diversity and weaken bargaining power for talent. “If I was tasked with doing so, I could not think of a more effective way to reduce competition in Hollywood than selling WBD to Netflix,” Jason Kilar, former Warner Media CEO, stated on X.

Unions have also voiced alarm. “The potential Netflix/Warner Bros transaction is a consolidation that may serve the financial interests of shareholders of both companies, but which raises many serious questions about its impact on the future of the entertainment industry, and especially the human creative talent whose livelihoods and careers depend on it,” the Screen Actor’s Guild (SAG-AFTRA) said in a statement provided to Al Jazeera.

Related: DC Weighs Antitrust Concerns Over Possible Netflix–HBO Max Merger

Should the merger pass regulatory review, Netflix’s more than 300 million subscribers would be combined with HBO Max’s 128 million customers, forming a streaming powerhouse that could reshape global viewing habits. Cinema United has warned the arrangement poses an “unprecedented threat” to cinemas worldwide.

Political backlash is also growing in Washington. Per Al Jazeera, officials in the White House view the deal with “heavy skepticism,” and several members of Congress argue it would reduce consumer choice and drive up prices. Senator Elizabeth Warren called the merger an “anti-trust nightmare,” adding that it risks limiting how Americans access entertainment. Representative Pramila Jayapal similarly criticised the proposal, saying it would mean “more price hikes, ads, & cookie cutter content, less creative control for artists, and lower pay for workers.”

Republican lawmakers have also expressed opposition, insisting a combined Netflix-Warner Bros Discovery would hold disproportionate power in the market.

The transaction arrives amid broader political tensions surrounding media ownership and editorial independence. According to Al Jazeera, some critics linked rival bidder Paramount-Skydance to the Trump administration, raising fears of potential partisan influence at news outlets such as CNN, which Warner Bros Discovery currently owns.

With regulatory challenges looming in the United States and Europe, the future of this blockbuster deal remains uncertain. But if approved, Netflix’s grip on global entertainment would deepen, sparking major repercussions for Hollywood’s creative landscape and millions of viewers worldwide.

Source: Al Jazeera