The U.S. media industry is in a state of high alert as Warner Bros.—home to HBO Max, DC Studios, and blockbuster franchises like Harry Potter and The Lord of the Rings—officially goes up for sale. In a surprising turn, Netflix, a company that has long avoided major mergers and acquisitions, has entered the bidding war. The move signals that the streaming giant may be eyeing a more aggressive expansion into traditional Hollywood territory, including theatrical releases. But Netflix’s recent rollout of Boot Camp, a drama centered on LGBTQ+ service members, has drawn criticism from the federal government and triggered pushback from Republican lawmakers—casting an early political shadow over the potential deal.
Warner Bros., which counts 116.9 million paid HBO Max subscribers and owns some of the most valuable IP in entertainment—including Mad Max and the DC universe—has decided to put its film and streaming divisions on the market following three consecutive years of losses. The announcement has kicked off a three-way contest among Netflix, Paramount Global, and Comcast.
The spotlight, however, remains firmly on Netflix. Although the company has made smaller acquisitions in the past—such as Scottish comic publisher Millarworld and indie game developer Night School Studio—it has never attempted to swallow a major media conglomerate. If successful, a Netflix–Warner Bros. merger could create a streaming powerhouse with a subscriber base approaching 400 million worldwide.
Reuters reported on Friday that such a union could reshape the streaming landscape, explaining that the combined strength of HBO Max and Netflix would create a formidable player. While regulators are expected to scrutinize the deal for its potential impact on consumer choice, the outlet noted that platforms such as YouTube and TikTok already command significant audience attention, complicating traditional antitrust arguments.
The Los Angeles Times reported on November 20 that Netflix is particularly interested in Warner Bros.’ crown-jewel franchises—Superman, The Matrix, Game of Thrones, and Harry Potter. Despite Netflix’s global success with Squid Game and Stranger Things, the latter’s creators recently departed for Paramount, highlighting the company’s struggle to retain top-tier talent. Acquiring Warner Bros. would also give Netflix long-coveted studio space, a major advantage in a production-constrained industry.
Gizmodo noted on November 20 that Netflix’s pledge to honor wider theatrical releases post-acquisition marks a dramatic departure from its longstanding strategy. “Historically, Netflix has been reluctant to release films broadly in theaters unless awards-season prospects were involved,” the outlet wrote, adding that this limited theatrical footprint has pushed some creators toward more traditional studios.
Still, many analysts warn the acquisition could prove detrimental to Netflix. In a column on Sunday, Bloomberg media editor Lucas Shaw argued that skeptics see the move as a sign Netflix is running low on fresh ideas. “Growth has slowed amid the password-sharing crackdown, its ad business isn’t breaking new ground, and its big gaming initiative may fizzle out,” Shaw wrote. He added that buying a legacy studio in decline looks less like an innovative leap and more like an aging media company grasping for scale.
And even if Netflix emerges as the winning bidder, closing the deal could take years. It would undergo intense review from federal and state regulators. The New York Times recently noted that political considerations frequently shape major mergers—particularly under administrations willing to intervene directly. A strained relationship with the White House could complicate any approval process.
Reuters reinforced that argument, highlighting Netflix’s recent friction with the Department of Defense over Boot Camp. The outlet reported that some Republican lawmakers are already warning that a Netflix takeover could reduce consumer choice and potentially drive subscription prices higher. That criticism has surfaced even before Netflix has submitted a formal bid.
Netflix’s competitors aren’t without their own complications. Paramount Global, controlled by Shari Redstone, may benefit from the public rapport between its incoming chairman, David Ellison, and Trump—potentially an advantage under a Republican-led regulatory environment. But the same relationship could trigger political backlash if Democrats regain federal power. Reuters noted that a Paramount–Warner merger would raise additional scrutiny because Paramount is also considering an acquisition of CNN, one of the most politically sensitive assets in media.
Industry estimates suggest that a combined Paramount–Warner operation could control about 32 percent of the North American box office. Such consolidation, Reuters warned, could reduce the number of films released theatrically and potentially shrink entertainment-sector jobs.
Comcast faces hurdles of its own. Trump has repeatedly attacked Comcast and its news division, NBC News, calling it a flagship of fake news and labeling CEO Brian Roberts an embarrassment to the broadcast industry. If Comcast acquired Warner Bros., the merged company would command roughly 43 percent of the domestic box office—an enormous share likely to raise alarms among regulators, filmmakers, and theater operators. According to Reuters, regulators would need to determine whether such a merger would stifle fair competition in the-box-office market.
With Netflix, Paramount, and Comcast all facing a mix of political resistance, industry skepticism, and antitrust scrutiny, the race to acquire Warner Bros. may become a defining moment for the U.S. entertainment sector. The outcome could determine how far the government is willing to let streaming giants reshape Hollywood—and whether the industry’s next era will be driven by consolidation, competition, or political calculation.
