A bombshell is currently shaking the whole of Hollywood: Netflix is taking over traditional film studio Warner Bros. For a whopping $82.7 billion, Netflix prevailed over competitors such as Paramount. What does this mean for cinema and for us movie and series fans? Here’s my opinion!

In a deal worth billions, the upstart from Silicon Valley has now snapped up one of the founding members of the dream factory. This historic moment, where the young Turk cannibalized an established symbol of the old guard, probably marks a turning point for the entire entertainment industry. It is an event with far-reaching and, in my opinion, still unknown consequences.

We don’t yet know whether this will be the best day since the release of Casablanca for both movie fans and Netflix subscribers — or the biggest massacre since the Red Wedding.

The Facts — What Happened?

The Deal in Detail: Who’s Buying What?

In one of the biggest takeovers in media history, Netflix is buying the film, TV, and streaming division of Warner Bros Discovery. The purchase price amounts to $72 billion in equity, which corresponds to a total valuation of $82.7 billion, including acquired debt. Warner Bros. Discovery shareholders will receive an offer of $27.75 per share, consisting of a mixture of cash and Netflix shares.

The deal brings some of the most valuable gems in the entertainment world into Netflix’s possession. These include classic Warner masterpieces such as “Casablanca”, “The Wizard of Oz” and “Blade Runner”. Netflix will also stand to benefit from more recent cinema blockbusters such as “Mad Max: Fury Road”, “Inception”, and “Dune”.

But that’s not all, of course. HBO also flies the Warner flag, with HBO Max just about to be launched in Germany. Quality series such as “The Last of Us” or “Game of Thrones” are also migrating to Netflix. The list could go on almost endlessly: World-famous franchises such as the “Harry Potter” universe and the entire DC Comics portfolio with superheroes such as Batman and Superman are also part of the deal. There are also game studios with huge titles such as “Hogwarts Legacy” and the “Batman Arkham” series.

However, it is also important to note which parts of the group do not come under the takeover. News and sports channels such as CNN, TNT Sports, and the Discovery Network will be spun off into an independent, listed company called “Discovery Global” before the deal is completed.

The Bidding War: A Hollywood Thriller

The takeover was preceded by a weeks-long bidding war. Competitors Paramount and Comcast were knocked out by Netflix. Paramount’s bid aimed at taking over the entire Warner Bros. Discovery group, while Netflix’s move was more targeted at the movie, TV, and streaming division. During the process, Paramount accused Warner Bros. of giving preferential treatment to Netflix and tried to challenge the sale. In the end, however, Netflix’s higher and more strategically focused offering prevailed.

Netflix Swallows Warner: What Does This Deal Mean?

For Netflix, this purchase is a strategic move to further secure its growth following the success of its action in preventing password sharing and drastically reducing its dependence on external studios. The aim is to create an unbeatable content offering by combining its own globally successful productions such as “Stranger Things” with Warner’s vast and historically significant library, ranging from “Friends” to “Casablanca”.

Ted Sarandos, co-CEO of Netflix, formulated the company’s ambitions in a statement to investors:

Over the years, we have been known as builders, not buyers … but this is a rare opportunity that’s going to help us achieve our mission to entertain the world, and bring people together through great stories.

In addition to the creative vision, the deal also logically pursues clear financial goals. Netflix expects annual cost savings of $2 to $3 billion dollars from the third year after the takeover is completed. I also think it is possible this deal offers the potential to counter the return of movie piracy.

Hollywood’s Nightmare: Resistance and Risks

While Silicon Valley is celebrating, the deal has triggered massive fear in Hollywood. The criticism focuses on three central areas of risk.

The Looming Threat to Cinema

Many industry representatives fear that Netflix could severely restrict the theatrical exploitation of future Warner productions or — even worse — stop it altogether. Assuming this could potentially be construed as the final nail in the already ailing cinema industry’s coffin, Cinema United described the deal as an “unprecedented threat”. Star director James Cameron simply called it a “disaster”, and former WarnerMedia CEO Jason Kilar stated that he could “not think of a more effective way to reduce competition in Hollywood than selling WBD to Netflix”. In response to these concerns, Netflix has promised to continue releasing Warner films in cinemas, but distrust among the creative industry remains high. Which is totally understandable, I think.

But what gives me hope, regardless of this deal? I firmly believe that there will be something of a creative counter-revolution. Vinyl records are becoming more and more popular at the same rate as streaming top dog Spotify is losing popularity. People can create whole songs in seconds, but no AI can give us a real concert experience. In the same way, I think cinema will never die if studios learn to turn movies into real events again.

The Clash of Cultures: HBO vs. Netflix

At the heart of the deal, two opposing philosophies collide. On one side is Warner Bros, founded in 1923 by the Warner brothers, a pioneer of the talkies (“The Jazz Singer”, 1927) and home to legends like Humphrey Bogart and icons like Bugs Bunny. On the other side is Netflix, a company committed to the tech cred of Silicon Valley. You know, that philosophy of moving fast and breaking things to create something new.

This culture clash manifests itself most clearly in the comparison between HBO, the “high-end forge” for high-end series with years of development time, and the Netflix machinery geared towards “speed and mass”. The crucial question remains how these cultures can co-exist and whether HBO’s creative excellence is at risk. The irony is that Netflix co-CEO Ted Sarandos once defined the bar himself when he said the goal was to “become HBO faster than HBO can become us”.

The Political Dimension and Antitrust Law

The deal will inevitably come under intense scrutiny from antitrust authorities in the US and Europe, as it would create a dominant streaming giant. Netflix, on the other hand, argues that a combination of its service with HBO Max would benefit consumers. After all, the costs of a bundled offering could be reduced.

There is also an explosive political dimension. The losing bidder Paramount, led by CEO David Ellison, the son of Oracle founder and Trump confidant Larry Ellison, was seen as a potential vehicle to give more conservative content more weight in Hollywood, which is seen as left-liberal. Trump is said to have personally asked Paramount for a sequel to the “Rush Hour” series directed by Brett Ratner.

One film producer already predicted that a Paramount takeover would trigger a wave of films with “classic male heroes who once again upheld honor and duty”. The fact that the “woke” Netflix of all companies, which focuses on more diverse content, has now been awarded the contract could make it even more difficult for the Trump-controlled authorities to give their approval. So, be prepared for more angsty Trump postings on Truth Social.

Conclusion: The First Battle is Won, but the War is Not (Yet) Over

Netflix has secured one of Hollywood’s most valuable treasures in the form of Warner Bros. and cemented its position as a dominant force in the global entertainment industry. But the road to complete domination is rocky. The company faces huge hurdles — from regulators who want to prevent a monopoly to fierce opposition from the creative industry, which fears for its artistic freedom and the future of cinema.

I find this development exciting, but I’m also a little scared that Netflix will screw it up. After developments in recent years, I don’t want to rule out the possibility that this takeover could translated to falling quality or rising prices — or both.

Netflix has won the battle for Warner Bros, but can it also win the war for the soul of Hollywood (if the antitrust authorities even let it get that far)? The “Game of Screens” has probably only just begun.

How do you view the situation? Is this good news for you because there will be much more content under one roof in the future? Or do you see it as another nail in the coffin for good old cinema?