What Netflix Buying Warner Bros. Could Mean for Disney Plus and Hulu -- and Streaming Prices
Netflix’s bid to acquire Warner Bros. from Warner Bros. Discovery marks a major shift in the streaming industry, potentially combining two giants and altering competition for services like Disney Plus and Hulu. Announced on December 5, 2025, the $82.7 billion deal includes Warner Bros.’ studios and streaming arm, Max, but faces a rival hostile offer from Paramount. This move comes amid ongoing consolidation in Hollywood, where companies seek scale to combat rising costs and subscriber churn.
Here’s the TL;DR...
Netflix agreed to buy Warner Bros. for $82.7 billion, but Paramount countered with a $78 billion all-cash tender offer for the entire Warner Bros. Discovery.
The deal aims to boost Netflix’s content library and subscriber base, potentially creating a service with over 400 million users.
Antitrust scrutiny looms large, with regulators eyeing market share thresholds that could block the merger.
Subscribers to Disney Plus and Hulu might see indirect effects through reduced competition, possibly leading to higher prices.
Theatrical releases could decline under Netflix, while Paramount pledges to maintain over 30 films annually.
Consumers face a future with fewer choices, risking a content oligarchy dominated by a handful of players.
Why is Netflix pursuing the Warner Bros. acquisition?
Netflix seeks to expand its content arsenal by absorbing Warner Bros.’ vast library, including hits from HBO and DC Comics. The streaming leader reported 302 million subscribers in recent figures, but growth has slowed amid password-sharing crackdowns and ad-tier experiments. Adding Warner Bros.’ assets would provide exclusive access to franchises like Harry Potter and Game of Thrones, helping Netflix fend off rivals in a saturated market.
Warner Bros. Discovery has struggled with debt from its 2022 merger, posting losses despite cost cuts under CEO David Zaslav. Selling the Warner side allows Discovery to focus on factual programming and cable networks like CNN. This separation, expected in early 2026, sets the stage for Netflix’s purchase.
Will the Netflix-Warner Bros. deal clear regulatory hurdles?
Antitrust concerns dominate discussions around the merger. U.S. President Donald Trump publicly flagged the $72 billion core deal as a potential “problem” on December 7, 2025, citing competition issues. The combined entity could control over 30 percent of the U.S. streaming market by viewing hours, a threshold that often triggers Department of Justice blocks.
Experts note direct overlap in premium services, with Netflix at 20 percent and Max at 15 percent of hours watched. A lawsuit already challenges the plan, and White House officials have privately raised alarms. Approval might require divestitures, such as spinning off certain content rights.
Paramount’s hostile bid adds complexity, as it targets the whole company at $30 per share. Warner Bros. Discovery’s board rejected prior Paramount offers, but shareholder pressure could sway outcomes before regulators weigh in.
How would a Netflix-Warner Bros. merger compare in subscriber numbers to Disney Plus and Hulu?
Netflix’s 302 million global subscribers would swell by Max’s 128 million, reaching about 430 million total, though overlaps of around 10 million U.S. users reduce the net gain. Disney’s bundle, including Disney Plus at roughly 153 million and Hulu at 50 million, totals 196 million. The merged Netflix-Warner service would dwarf that, solidifying Netflix as the top player ahead of Amazon Prime’s 220 million.
Market share by engagement tells a similar story. Netflix and Max together claim 35 percent of viewing hours, versus Disney’s 24 percent across its platforms. This scale could pressure Disney to accelerate bundling or acquisitions to keep pace.
Could streaming prices increase if Netflix acquires Warner Bros.?
Reduced competition often leads to higher costs for users. Netflix raised U.S. prices in January 2025 after adding 18.9 million subscribers in late 2024, with basic plans now at $15.49 monthly. A Warner merger might justify further hikes to fund the $10 billion in assumed debt, especially as ad-supported tiers grow.
Analysts predict consolidated markets push average streaming bills up 10-15 percent over time. With fewer independents, services like Disney Plus could follow suit, straining household budgets already averaging $50 monthly on multiple subscriptions.
What does this merger mean for theatrical movie releases?
Netflix has historically prioritized direct-to-streaming premieres, releasing only a handful in theaters annually. Acquiring Warner Bros., a major studio with tentpoles like Dune and Batman, might shift more films online faster, eroding traditional cinema windows. This could hurt box office revenues, already down 20 percent from pre-pandemic levels.
Studios rely on theatrical runs for marketing buzz and ancillary sales. A Netflix-led Warner might cut releases to 10-15 per year, focusing on high-profile events. Cinemas and filmmakers worry this accelerates the decline of big-screen experiences.
What if Paramount acquires Warner Bros. Discovery instead?
Paramount launched its all-cash offer on December 8, 2025, valuing Warner Bros. Discovery at $78 billion after Netflix’s deal. Backed by David Ellison‘s Skydance, the bid promises stability for Warner’s assets amid rejection of six prior proposals. If successful, it would merge Paramount’s film slate with Warner’s, creating a Hollywood powerhouse.
Paramount emphasizes preserving Warner’s creative independence and committing to over 30 theatrical releases yearly. This contrasts Netflix’s streaming-first approach, potentially appealing to shareholders wary of antitrust blocks.
How would a Paramount-Warner Bros. deal stack up against Disney Plus and Hulu in numbers?
Paramount Plus holds about 80 million subscribers, combining with Max’s 128 million for a total near 208 million, slightly edging Disney’s 196 million across Disney Plus and Hulu. The merger would boost Paramount’s library with HBO originals and Warner films, challenging Disney’s family-focused dominance.
By viewing hours, the new entity might claim 26 percent, close to Disney’s share. Financially, it could achieve profitability faster, with Paramount reporting gains in 2025 after bundling with Showtime.
What implications does this have for streaming consumers overall?
Fewer major players mean less incentive for aggressive pricing or innovation. Consumers might face bundled mega-services with mandatory ads, reducing choice in a market already criticized as fragmented. A content oligarchy dominated by Netflix, Amazon, and Disney could limit diverse voices, favoring blockbusters over niche programming.
The bidding war highlights industry desperation for scale. If Netflix prevails, expect streamlined libraries but potential blackouts during contract disputes. Paramount’s win might preserve more options, though integration challenges loom.
This potential merger underscores streaming’s maturation from disruptor to establishment player. As deals consolidate power, regulators and consumers must push for safeguards against monopolistic practices. The outcome will shape entertainment access for years, balancing corporate gains with viewer affordability.
Hat Tips
Netflix to Acquire Warner Bros. Following the Separation of... / Netflix Newsroom / December 5, 2025
Netflix to buy Warner Bros Discovery’s studios, streaming... / Reuters / December 5, 2025
PARAMOUNT LAUNCHES All-CASH TENDER OFFER TO... / Paramount Investor Relations / December 8, 2025
Paramount launches hostile bid for Warner Bros. Discovery / NBC News / December 8, 2025
Netflix-Warner deal would drive streaming market further... / Fortune / December 8, 2025
Trump warns Netflix-Warner deal may pose antitrust ‘problem’ / Fortune / December 7, 2025
Evaluating the Sale of Warner Bros Discovery to Netflix... / Truth on the Market / December 8, 2025
Netflix Subscribers Statistics 2025 / Demand Sage / December 4, 2025
How the Streamers Stack Up... / The Wrap / November 14, 2025
Paramount In Hostile Bid For Warner Bros. Promises 30+... / Deadline / December 8, 2025
Article Compiled and Edited by Ivy Adams on December 10, 2025 for Pirates & Princesses