netflix

netflix-to-pay-all-cash-for-warner-bros.-to-fend-off-paramount-hostile-takeover

Netflix to pay all cash for Warner Bros. to fend off Paramount hostile takeover

“By transitioning to all-cash consideration, we can now deliver the incredible value of our combination with Netflix at even greater levels of certainty, while providing our stockholders the opportunity to participate in management’s strategic plans to realize the value of Discovery Global’s iconic brands and global reach,” Warner Bros. Discovery board Chairman Samuel Di Piazza Jr. said in today’s press release.

Netflix is more likely to complete the deal, firms argue

Paramount also made an all-cash offer, but the Warner Bros. board called the Paramount bid “illusory” because it requires an “extraordinary amount of debt financing” and other terms that allegedly make it less likely to be completed than a Netflix merger.

Paramount “is a $14B market cap company with a ‘junk’ credit rating, negative free cash flows, significant fixed financial obligations, and a high degree of dependency on its linear business,” while Netflix has “market capitalization of approximately $400 billion, an investment grade balance sheet, an A/A3 credit rating and estimated free cash flow of more than $12 billion for 2026,” Warner Bros. told shareholders.

Warner Bros. and Netflix today continued to tout Netflix’s strong financial position and its ability to close the deal. “Netflix’s strong cash flow generation supports the revised all-cash transaction structure while preserving a healthy balance sheet and flexibility to capitalize on future strategic priorities,” the joint press release said.

The Wall Street Journal explained that the new “deal structure does away with a so-called collar, a mechanism meant to protect shareholders from large swings in an acquirer’s share price between the time when a deal is announced and when it closes. If Netflix shares dipped below $97.91, Warner shareholders were to get a larger portion of Netflix shares as part of the deal. If they rose above $119.67, shareholders would have received a smaller portion.”

Netflix to pay all cash for Warner Bros. to fend off Paramount hostile takeover Read More »

paramount-sues-wbd-over-netflix-deal-wbd-says-paramount’s-price-is-still-inadequate.

Paramount sues WBD over Netflix deal. WBD says Paramount’s price is still inadequate.

Paramount Skydance escalated its hostile takeover bid of Warner Bros. Discovery (WBD) today by filing a lawsuit in Delaware Chancery Court against WBD, declaring its intention to fight Netflix’s acquisition.

In December, WBD agreed to sell its streaming and movie businesses to Netflix for $82.7 billion. The deal would see WBD’s Global Networks division, comprised of WBD’s legacy cable networks, spun out into a separate company called Discovery Global. But in December, Paramount submitted a hostile takeover bid and amended its bid for WBD. Subsequently, the company has aggressively tried to convince WBD’s shareholders that its $108.4 billion offer for all of WBD is superior to the Netflix deal.

Today, Paramount CEO David Ellison wrote a letter to WBD shareholders informing them of Paramount’s lawsuit. The lawsuit requests the court to force WBD to disclose “how it valued the Global Networks stub equity, how it valued the overall Netflix transaction, how the purchase price reduction for debt works in the Netflix transaction, or even what the basis is for its ‘risk adjustment’” of Paramount’s $30 per share all-cash offer. Netflix’s offer equates to $27.72 per share, including $23.25 in cash and shares of Netflix common stock. Paramount hopes the information will encourage more WBD shareholders to tender their shares under Paramount’s offer by the January 21 deadline.

Before WBD announced the Netflix deal, Paramount publicly questioned the fairness of WBD’s bidding process. Paramount has since argued that its bid wasn’t given fair consideration or negotiation.

In his letter today, Ellison wrote:

We remain perplexed that WBD never responded to our December 4th offer, never attempted to clarify or negotiate any of the terms in that proposal, nor traded markups of contracts with us. Even as we read WBD’s own narrative of its process, we are struck that there were few actual board meetings in the period leading up to the decision to accept an inferior transaction with Netflix. And we are surprised by the lack of transparency on WBD’s part regarding basic financial matters. It just doesn’t add up – much like the math on how WBD continues to favor taking less than our $30 per share all-cash offer for its shareholders.

Additionally, Paramount plans to nominate board directors for election at WBD’s annual shareholder meeting who will fight against the Netflix deal’s approval. The window for nominations opens in three weeks, Ellison’s letter noted.

Paramount sues WBD over Netflix deal. WBD says Paramount’s price is still inadequate. Read More »

warner-bros.-sticks-with-netflix-merger,-calls-paramount’s-$108b-bid-“illusory”

Warner Bros. sticks with Netflix merger, calls Paramount’s $108B bid “illusory”


Larry Ellison pledged $40B, but “he didn’t raise the price,” Warner chair says.

Credit: Getty Images | Kenneth Cheung

The Warner Bros. Discovery board has unanimously voted to rebuff Paramount’s $108.4 billion offer and urged shareholders to reject the hostile takeover bid. The board is continuing to support Netflix’s pending $82.7 billion purchase of its streaming and movie studios businesses along with a separate spinoff of the Warner Bros. cable TV division.

Warner Bros. called the Paramount bid “illusory” in a presentation for shareholders today, saying the offer requires an “extraordinary amount of debt financing” and other terms that make it less likely to be completed than a Netflix merger. It would be the largest leveraged buyout ever, “with $87B of total pro forma gross debt,” and is “effectively a one-sided option for PSKY [Paramount Skydance] as the offer can be terminated or amended by PSKY at any time,” Warner Bros. said.

The Warner Bros. presentation touted Netflix’s financial strength while saying that Paramount “is a $14B market cap company with a ‘junk’ credit rating, negative free cash flows, significant fixed financial obligations, and a high degree of dependency on its linear business.” The Paramount “offer is illusory as it cannot be completed before it is currently scheduled to expire,” Warner Bros. said.

Warner Bros. said in a letter to shareholders today that it prefers Netflix with its “market capitalization of approximately $400 billion, an investment grade balance sheet, an A/A3 credit rating and estimated free cash flow of more than $12 billion for 2026.” Moreover, the deal with Netflix provides Warner Bros. with “more flexibility to operate in a normal course until closing,” the letter said.

Even if Paramount is able to complete a deal, “WBD stockholders will not receive cash for 12-18 months and you cannot trade your shares while shares are tendered,” the board told investors. Despite the seemingly firm position, Warner Bros. Discovery board Chairman Samuel Di Piazza Jr. seemed to suggest in an appearance on CNBC’s Squawk Box today that the board could be swayed by a higher offer.

Larry Ellison “didn’t raise the price”

On December 5, after a bidding war that also involved Paramount and Comcast, Warner Bros. struck a deal to sell Netflix its streaming and movie studios businesses. Netflix, already the world’s largest streaming service, would become an even bigger juggernaut if it completes the takeover including rival HBO Max, WB Studios, and other assets.

While the Paramount bid is higher, it would involve the purchase of more Warner Bros. assets than the deal with Netflix. “Unlike Netflix, Paramount is seeking to buy the company’s legacy television and cable assets such as CNN, TNT, and Discovery Channel,” the Financial Times wrote. “Netflix plans to acquire WBD after it spins off its cable TV business, which is scheduled to happen this year.”

Paramount, which recently completed an $8 billion merger with Skydance, submitted its bid for a hostile takeover days after the Netflix/Warner Bros. deal was announced. Warner Bros. resisted, and Paramount amended its offer on December 22 to address objections.

“Larry Ellison has agreed to provide an irrevocable personal guarantee of $40.4 billion of the equity financing for the offer and any damages claims against Paramount,” Paramount said. It also said it offered “improved flexibility to WBD on debt refinancing transactions, representations and interim operating covenants.”

Larry Ellison’s son, David Ellison, is the chairman and CEO of Paramount Skydance. In his CNBC appearance, Di Piazza acknowledged that “Larry Ellison stepped up to the table and the board recognizes what he did.” But “ultimately, he didn’t raise the price. So, in our perspective, Netflix continues to be the superior offer, a clear path to closing.”

Warner Bros. shareholders currently have a January 21 deadline for tendering shares under the Paramount offer, but that could change, as Paramount has indicated it could sweeten the deal further.

Breakup fees a sticking point

Warner Bros. said in the letter to shareholders today that the latest offer still isn’t good enough. Paramount is “attempting an acquisition requiring $94.65 billion of debt and equity financing, nearly seven times its total market capitalization,” requiring it “to incur an extraordinary amount of incremental debt—more than $50 billion—through arrangements with multiple financing partners,” the letter said.

Warner Bros. said that breaking the deal with Netflix would require it to pay Netflix a $2.8 billion termination fee. Either Paramount or Netflix would have to pay Warner Bros. a $5.8 billion termination fee if the buyer can’t get regulatory approval for a merger. But if a Paramount deal failed, there would also be $4.7 billion in unreimbursed costs for shareholders, reducing the effective termination fee to $1.1 billion, according to Warner Bros.

“In the large majority of cases, when an overbidder comes in, they take that break[up] fee and pay it,” Di Piazza said on CNBC.

Warner Bros. Discovery also said the Paramount offer would prohibit it from completing its planned separation of Discovery Global and Warner Bros., which it argues will bring substantial benefits to shareholders by letting each of the separated entities “focus on its own strategic plan.” This separation can be completed even if Netflix is unable to complete the merger for regulatory reasons, it said.

We contacted Paramount and will update this article if it provides any response.

Warner Bros. investor wants more negotiations

Warner Bros. is facing pressure from one of its top shareholders to negotiate further with Paramount. “Pentwater Capital Management, a hedge-fund manager that is among Warner’s top shareholders, told the board in a letter Wednesday that it is failing in its fiduciary duty to shareholders by not engaging in discussions with Paramount,” according to The Wall Street Journal.

The hedge-fund manager said the board should at least ask Paramount what improvements it is willing to make to its offer. “Pentwater vowed to vote against the merger and not support the renomination of directors in the future if Paramount raises its offer and Warner’s board doesn’t have further discussions with the company,” the Journal wrote.

The Warner Bros. board argued in its letter that “PSKY has continued to submit offers that still include many of the deficiencies we previously repeatedly identified to PSKY, none of which are present in the Netflix merger agreement, all while asserting that its offers do not represent its ‘best and final’ proposal.”

However, Di Piazza suggested on CNBC that Paramount could still put a superior offer on the table. “They had that opportunity in the seventh proposal, the eighth proposal, and they haven’t done it,” he said. “And so from our perspective, they’ve got to put something on the table that is compelling and is superior.”

Netflix issued a statement today saying it “is engaging with competition authorities, including the US Department of Justice and European Commission,” to move the deal forward. “As previously disclosed, the transaction is expected to close in 12-18 months from the date that Netflix and WBD originally entered into their merger agreement,” Netflix said.

Photo of Jon Brodkin

Jon is a Senior IT Reporter for Ars Technica. He covers the telecom industry, Federal Communications Commission rulemakings, broadband consumer affairs, court cases, and government regulation of the tech industry.

Warner Bros. sticks with Netflix merger, calls Paramount’s $108B bid “illusory” Read More »

“streaming-stops-feeling-infinite”:-what-subscribers-can-expect-in-2026

“Streaming stops feeling infinite”: What subscribers can expect in 2026


Spoiler: expect higher prices

Streaming may get a little worse before it gets better.

We’re far from streaming’s original promise: instant access to beloved and undiscovered titles without the burden of ads, bundled services, or price gouging that have long been associated with cable.

Still, every year we get more dependent on streaming for entertainment. Despite streaming services’ flaws, many of us are bound to keep subscribing to at least one service next year. Here’s what we can expect in 2026 and beyond.

Subscription prices keep rising, but perhaps not as expected

There’s virtually no hope of streaming subscription prices plateauing in 2026. Streaming companies continue to face challenges as content production and licensing costs rise, and it’s often easier to get current customers to pay slightly more than to acquire new subscribers. Meanwhile, many streaming companies are still struggling with profitability and revenue after spending years focusing on winning subscribers with content.

“We see many services are only now aligning content spend with realistic lifetime value per subscriber,” Christofer Hamilton, industry insights manager at streaming analyst Parrot Analytics, told Ars.

Companies may get more creative with how they frame higher costs to subscribers, however. People who pay extra to stream without ads are the most likely to see price bumps as streaming companies continue pushing customers toward ad-based tiers.

Charging more for “premium” features—such as 4K streaming, simultaneous streams, or offline downloads—offers another way for streaming companies to boost revenue without implementing broad price hikes that risk provoking customer outrage. Subscribers can expect streaming prices to get “more menu-like next year,” said Michael Goodman, director of entertainment research at Parks Associates, a research firm focusing on IoT, consumer electronics, and entertainment.

When will the price hikes stop?

If streaming prices won’t stop rising next year, when will they?

Ultimately, it may be up to subscribers to vote with their dollars by canceling subscriptions or opting for cheaper or free alternatives, such as FAST (free ad-supported streaming television) channels with linear programming.

As Goodman put it, “Until we see net adds stall or decline as a result of price hikes, services have no incentive to stop raising prices.”

Some experts doubt that streaming services will ever willingly stop increasing prices. Bill Yousman, professor and director of the Media Literacy and Digital Culture graduate program at Sacred Heart University, sees precedent for this in cable companies.

“If the big streaming companies had their way, there would be no limit to their price hikes. We have already seen this with the cable monopolies and their disregard for consumer dissatisfaction,” he said.

Yousman believes that prices will only “be brought under control if there is some type of government regulation,” but he noted that’s unlikely under the Trump administration.

To date, US lawmakers haven’t shown interest in halting the steady rise of streaming prices. Most lawmakers who have sought to regulate the industry have focused on industry consolidation. There has been some effort from lawmakers to rein in streaming price hikes, though, especially through proposed federal legislation dubbed the Price Gouging Prevention Act.

Streaming services lean deeper into cable-like bundles

Companies will look to leverage subscribers’ frustration with pricing by being more aggressive about bundling third-party services like traditional pay TV, Internet, and cell phone service with streaming subscriptions. The idea is that people are less likely to cancel a streaming subscription if it’s tied to a different subscription (including another streaming subscription). The strategy echoes the days of cable, when some people kept unused landlines just to save money on cable channels or Internet service.

“For subscribers, 2026 is the year streaming stops feeling infinite and starts feeling more like premium cable used to: fewer apps, clearer bundles, and higher expectations for each service they pay for,” Parrot’s Hamilton said.

Thanks to traditional pay TV providers, bundles have a bad connotation among people looking to save money and simplify their subscriptions. But bundling doesn’t always have to be a bad thing, as Yousman explains:

If the companies wanted to really be responsive to consumers, they would let them design their own packages rather than having to choose options that may or may not include all the services they want. What works against this, of course, is the demand for ever-increasing profits at all times.

Should a sale of Warner Bros. Discovery’s (WBD’s) HBO Max be completed (late) next year, subscribers will face more pressure to bundle their streaming subscriptions.

“When dominant platforms like Netflix or Paramount absorb major content players, it accelerates the erosion of streaming’s original promise: freedom from monopolistic bundles,” Vikrant Mathur, co-founder of streaming technology provider Future Today, said.

Netflix and Paramount duke it out over Warner Bros.

WBD announced plans this month to sell its streaming and movie studios business to Netflix for an equity value of $72 billion, or an approximate total enterprise value of $82.7 billion. Paramount Skydance, however, quickly swooped in with a hostile takeover bid for all of WBD, including its cable channels, for $108.4 billion. A WBD shareholder vote will occur in spring or early summer, chairman Samuel Di Piazza told CNBC. By the end of 2026, we should have a clearer understanding of the future of HBO Max, as well as Netflix and Paramount+.

Any acquisition will be subject to regulatory scrutiny, causing more uncertainty for subscribers. If Netflix buys HBO Max, users of both services can expect higher prices due to reduced competition and the extensive amount of content and number of big-budget franchises (including Harry Potter and DC Comics) expected to unite under one platform.

“If Netflix gets [HBO Max] and the WB studios, HBO Max subscribers are more likely to see a smoother transition, strong ongoing investment in premium content, and simpler app/billing integration,” Parks Associates’ Goodman said.

But while the potential merger is worth watching, subscribers are unlikely to truly feel the impact of HBO Max potentially changing ownership until after 2026.

“Producing a show is a yearslong process, so the content that was already slated to air isn’t going to disappear, and the new content acquired through the WB library won’t be available until the merger is approved and closes,” Tre Lovell, attorney and owner of Los Angeles entertainment law firm The Lovell Firm, explained.

Content starts getting less bold

Looking beyond 2026, a sale of part or all of WBD would likely open the door for more streaming acquisitions. That could eventually benefit customers by making it easier to find content to watch with fewer subscriptions. But merged companies are also less likely to take risks on unique and diverse content.

Analysts I spoke with pointed to fewer niche and mid-tier original shows and movies and more show cancellations if either Netflix or Paramount buys HBO Max. Either buyer would probably focus more on the already-successful franchises that WB owns, such as Game of Thrones, Batman, and Superman.

“Big combined libraries push companies to double down on proven IP because it travels, merchandises, and reduces marketing risk,” said Robert Rosenberg, a partner at the New York law firm Moses Singer focusing on intellectual property, entertainment, technology, and data law.

Rosenberg also expects to see a “tilt toward” live events, sports, and unscripted content “for retention” if HBO Max sells.

In the shorter term, Rory Gooderick, research manager at analyst firm Ampere Analysis, predicted that WBD will be “cautious when greenlighting new large-scale projects until” the acquisition is finalized.

Beyond the potential HBO Max sale, more merger activity could lead to streaming services straying from their original selling point of offering bolder, quirkier content.

As the industry consolidates, “sticky content,” like procedurals, reality shows, and “comfort TV that drives long viewing sessions,” will take priority among mainstream, subscription-based streaming services, especially as they put more emphasis on ad-tier subscriptions, Goodman predicted.

A more stable future?

The new year will be formative for streaming and yield lasting impacts for subscribers. We’ve discussed numerous negative implications, but there could be a silver lining. While we may see more turbulence, hopefully, we’ll also start to see a road toward more stable streaming options.

Streaming subscribers can’t directly stop mergers or price hikes or control streaming libraries. But with services like Netflix and Disney+ focusing on becoming one-stop shops with massive libraries, there’s an opportunity for other services to hone their specialties and stand out by providing offbeat, unexpected, and rare content at more affordable prices.

As the landscape settles, streamers should be mindful of the importance of variety to subscribers. According to Bill Michels, chief product officer at Gracenote, Nielsen’s content data business unit:

There will be some consolidation. But the [connected TV] landscape, inclusive of FAST and [direct-to-consumer] channels, provides more than ample video variety for viewers, so the biggest challenge will be connecting content with the right audience. Audience engagement depends on good content. Audience retention depends on making sure audiences are never without something to watch.

Photo of Scharon Harding

Scharon is a Senior Technology Reporter at Ars Technica writing news, reviews, and analysis on consumer gadgets and services. She’s been reporting on technology for over 10 years, with bylines at Tom’s Hardware, Channelnomics, and CRN UK.

“Streaming stops feeling infinite”: What subscribers can expect in 2026 Read More »

stranger-things-series-finale-trailer-is-here

Stranger Things series finale trailer is here

Stranger Things fans are hyped for the premiere of the hotly anticipated series finale on New Year’s Eve: they’ll either be glued to their TVs or heading out to watch it in a bona fide theater. Netflix has dropped one last trailer for the finale—not that it really needs to do anything more to boost anticipation.

(Some spoilers for Vols. 1 and 2 below but no major Vol. 2 reveals.)

As previously reported, in Vol. 1, we found Hawkins under military occupation and Vecna targeting a new group of young children in his human form under the pseudonym “Mr. Whatsit” (a nod to A Wrinkle in Time). He kidnapped Holly Wheeler and took her to the Upside Down, where she found an ally in Max, still in a coma, but with her consciousness hiding in one of Vecna’s old memories. Dustin was struggling to process his grief over losing Eddie Munson in S4, causing a rift with Steve. The rest of the gang was devoted to stockpiling supplies and helping Eleven and Hopper track down Vecna in the Upside Down. They found Kali/Eight, Eleven’s psychic “sister” instead, being held captive in a military laboratory.

Things came to a head at the military base when Vecna’s demagorgons attacked to take 11 more children, wiping out most of the soldiers in record time. The big reveal was that, as a result of being kidnapped by Vecna in S1, Will has his own supernatural powers because of his ties to Vecna. He can tap into Vecna’s hive mind and manipulate those powers for his own purposes. He used those newfound powers to save his friends from the demagorgons.

Stranger Things series finale trailer is here Read More »

stranger-things-s5-trailer-teases-vol.-2

Stranger Things S5 trailer teases Vol. 2

We’re 10 days away from the next installment of the fifth and final season of Stranger Things, and Netflix has released a new trailer for what it’s calling Volume 2. This will cover episodes five through seven, with the final episode comprising Vol. 3.

(Spoilers for Season 5, Vol. 1 below.)

Season 4 ended with Vecna—the Big Bad behind it all—opening the gate that allowed the Upside Down to leak into Hawkins. We got a time jump for S5, Vol. 1, but in a way, we came full circle, since those events coincided with the third anniversary of Will’s original disappearance in S1.

In Vol. 1, we found Hawkins under military occupation and Vecna targeting a new group of young children in his human form under the pseudonym “Mr. Whatsit” (a nod to A Wrinkle in Time). He kidnapped Holly Wheeler and took her to the Upside Down, where she found an ally in Max, still in a coma, but her consciousness is hiding in one of Vecna’s old memories. Dustin was struggling to process his grief over losing Eddie Munson in S4, causing a rift with Steve. The rest of the gang was devoted to stockpiling supplies and helping Eleven and Hopper track down Vecna in the Upside Down. They found  Kali/Eight, Eleven’s psychic “sister” instead, being held captive in a military laboratory.

Things came to a head at the military base when Vecna’s demagorgons attacked to take 11 more children, wiping out most of the soldiers in record time. The big reveal was that, as a result of being kidnapped by Vecna in S1, Will has his own supernatural powers. He can tap into Vecna’s hive mind and manipulate those powers for his own purposes. He used his newfound powers to save his friends from the demagorgons.

Stranger Things S5 trailer teases Vol. 2 Read More »

a-study-in-contrasts:-the-cinematography-of-wake-up-dead-man

A study in contrasts: The cinematography of Wake Up Dead Man

Rian Johnson has another Benoit Blanc hit on his hands with Wake Up Dead Man, in which Blanc tackles the strange death of a fire-and-brimstone parish priest, Monseigneur Jefferson Wicks (Josh Brolin). It’s a classic locked-room mystery in a spookily Gothic small-town setting, and Johnson turned to cinematographer Steve Yedlin (Looper, The Last Jedi) to help realize his artistic vision.

(Minor spoilers below but no major reveals.)

Yedlin worked on the previous two Knives Out installments. He’s known Johnson since the two were in their teens, and that longstanding friendship ensures that they are on the same page, aesthetically, from the start when they work on projects.

“We don’t have to test each other,” Yedlin told Ars. “There isn’t that figuring out period. We get to use the prep time in a way that’s really efficient and makes the movie better because we’re [in agreement] from the very first moment of whatever time we have crafting and honing and sculpting this movie. We don’t waste time talking abstractions or making sure we have the same taste. We can just dive right into the details of each individual scene and shot.”

This time, given the distinctive Gothic sensibility of Wake Up Dead Man, Yedlin played up the interplay between light and dark. For instance, Johnson’s script called for the occasional dramatic lighting changes, sometimes within the same scene. Case in point: the dramatic light changes in an exchange between the young priest (and prime suspect) Jud Duplenticy (Josh O-Connor) and Blanc. As Blanc starts speaking the clouds cover the sun; the sun re-emerges as Duplenticy’s speech swells. Blanc gets a second moment in the sun, so to speak, with his “road to Damascus” moment just before the final reveal.

“In the church, we have day, night, dawn, dusk,” said Yedlin. “We have early morning rays slashing in. As Wick’s speech swells up, the sun bursts out from behind the clouds and flares the lens. We had custom light control software so they can both control and tweak all the nuances of the lighting and also do the cues themselves where it’s changing during the shot, where it’s very flexible and we can be creative in the moment. It’s very repeatable and dependable and you can just push a button and it happens on the same line over the same length of time, every time.”

A study in contrasts: The cinematography of Wake Up Dead Man Read More »

netflix’s-$72b-wb-acquisition-confounds-the-future-of-movie-theaters,-streaming

Netflix’s $72B WB acquisition confounds the future of movie theaters, streaming


Netflix’s plans to own HBO Max, DC Comics, Harry Potter to face regulatory scrutiny.

The bidding war is over, and Netflix has been declared the winner.

After flirting with Paramount Skydance and Comcast, Warner Bros. Discovery (WBD) has decided to sell its streaming and movie studios business to Netflix. If approved, the deal is set to overturn the media landscape and create ripples that will affect Hollywood for years.

$72 billion acquisition

Netflix will pay an equity value of $72 billion, or an approximate total enterprise value of $82.7 billion, for Warner Bros. All of WBD has a $60 billion market value, NBC News notes.

The acquisition will take place after WBD completes the split of its streaming and studios businesses, which includes its film and TV libraries and the HBO channel, and its other TV networks, including CNN and TBS, into separate companies (Warner Bros. and Discovery Global, respectively). WBD’s split is expected to finish in Q3 2026.

Additionally, Netflix’s acquisition is subject to regulatory approvals, WBD shareholder approval, and other “customary closing conditions.”

Netflix expects the purchase to net it more subscribers, higher engagement, and “at least $2–3 billion of cost savings per year by the third year,” its announcement said.

Netflix co-CEO Greg Peters said in a statement that Netflix will use its global reach and business model to bring WB content to “a broader audience.”

The announcement didn’t specify what this means for current WBD staff, including WBD’s current president and CEO, David Zaslav. Gunnar Wiedenfels, who is currently CFO of WBD, is expected to be the CEO of Discovery Global after WBD split.

Netflix to own HBO Max

Netflix will have to overcome regulatory hurdles to complete this deal, which would evolve it from a streaming king to an entertainment juggernaut. If completed, the world’s largest streaming service by subscribers (301.63 million as of January) will own its third biggest rival (WBD has 128 million streaming subscribers, most of which are HBO Max users).

The acquisition would also give Netflix power over a mountain of current and incoming titles, including massive global franchises DC Comics, Game of Thrones, and Harry Potter.

If the deal goes through, Netflix said it will incorporate content from WB Studios, HBO Max, and HBO into Netflix. Netflix is expected to keep HBO Max available as a separate service, at least for the near term, Variety reported today. However, it’s easy to see a future where Netflix tries to push subscriptions bundling Netflix and HBO Max before consolidating the services into one product that would likely be more expensive than Netflix is today. Disney is setting the precedent with its bundles of Disney+ and the recently acquired Hulu, and by featuring a Hulu section within the Disney+ app.

Before today’s announcement, industry folks were concerned about Netflix potentially owning that much content while dominating streaming. However, Netflix said today that buying WB would enable it to “significantly expand US production capacity and continue to grow investment in original content over the long term, which will create jobs and strengthen the entertainment industry.”

Uniting Netflix and HBO Max’s libraries could make it easier for streaming subscribers to find content with fewer apps and fewer subscriptions. However, subscribers could also be negatively impacted (especially around pricing) if Netflix gains too much power, both as a streaming company and media rights holder.

In WBD’s most recent earnings report, its streaming business reported $45 million in quarterly earnings before interest, taxes, depreciation, and amortization. Netflix reported a quarterly net income of $2.55 billion in its most recent earnings report.

Netflix hasn’t detailed plans for the HBO cable channel. But given Netflix’s streaming ethos, the linear network may not endure in the long term. But since the HBO brand is valuable, we expect the name to persist, even if it’s just as a section of prestige titles within Netflix.

“A noose around the theatrical marketplace”

Among the stakeholders most in arms about the planned acquisition is the movie theater industry. Netflix’s co-CEO Ted Sarandos has historically seen minimal value in theaters as a distribution method. In April, he said that making movies “for movie theaters, for the communal experience” is “an outmoded idea.”

Today, Sarandos said that under Netflix, all WB movies will still hit theaters as planned, which brings us through 2029, per Variety.

During a conference call today, Sarandos said he has no “opposition to movies in theaters,” adding, per Variety:

My pushback has been mostly in the fact of the long exclusive windows, which we don’t really think are that consumer-friendly. But when we talk about keeping HBO operating, largely as it is, that also includes their output movie deal with Warner Bros., which includes a life cycle that starts in the movie theater, which we’re going to continue to support.

Notably, the executive said that “Netflix movies will take the same strides they have, which is, some of them do have a short run in the theater beforehand.”

Anticipating today’s announcement, the movie theater industry has been pushing for regulatory scrutiny over the sale of WB.

Michael O’Leary, CEO and president of Cinema United, the biggest exhibition trade organization, said in a statement today about the Netflix acquisition:

Regulators must look closely at the specifics of this proposed transaction and understand the negative impact it will have on consumers, exhibition, and the entertainment industry.

In a letter sent to Congress members this month, an anonymous group that described itself as “concerned feature film producers” wrote that Netflix’s purchase of WB would “effectively hold a noose around the theatrical marketplace” by reducing the number of theatrical releases and driving down the price of licensing fees for films after their theatrical release, as reported by Variety.

Up next: Regulatory hurdles

In the coming weeks, we’ll get a clearer idea of how antitrust concerns and politics may affect Netflix’s acquisition plans.

Recently, other media companies, such as Paramount, have been accused of trying to curry favor with US President Donald Trump in order to get deals approved. The US Department of Justice (DOJ) could try to block Netflix’s acquisition of WB. But there’s reason for Netflix and WB to remain optimistic if that happens. In 2017, Time Warner and AT&T successfully defeated the DOJ’s attempted merger block.

Still, Netflix and WB have their work cut out for them, as skepticism around the deal grows. Last month, US Senators Elizabeth Warren (D-Mass.), Richard Blumenthal (D-Conn.), and Bernie Sanders (I-Vt.) wrote to the DOJ’s antitrust division urging that any WB deal “is grounded in the law, not President Trump’s political favoritism.”

In a letter to Attorney General Pam Bondi last month, Rep. Darrel Issa (R-Calif.) said that buying WB would “enhance” Netflix’s “unequaled market power” and be “presumptively problematic under antitrust law.”

In a statement about Netflix’s announcement shared by NBC News today, a spokesperson for the California attorney general’s office said:

“The Department of Justice believes further consolidation in markets that are central to American economic life—whether in the financial, airline, grocery, or broadcasting and entertainment markets—does not serve the American economy, consumers, or competition well.”

Netflix’s rivals may also seek to challenge the deal. Attorneys for Paramount questioned the “fairness and adequacy” of WBD’s sales process ahead of today’s announcement.

Photo of Scharon Harding

Scharon is a Senior Technology Reporter at Ars Technica writing news, reviews, and analysis on consumer gadgets and services. She’s been reporting on technology for over 10 years, with bylines at Tom’s Hardware, Channelnomics, and CRN UK.

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Netflix quietly drops support for casting to most TVs

Have you been trying to cast Stranger Things from your phone, only to find that your TV isn’t cooperating? It’s not the TV—Netflix is to blame for this one, and it’s intentional. The streaming app has recently updated its support for Google Cast to disable the feature in most situations. You’ll need to pay for one of the company’s more expensive plans, and even then, Netflix will only cast to older TVs and streaming dongles.

The Google Cast system began appearing in apps shortly after the original Chromecast launched in 2013. Since then, Netflix users have been able to start video streams on TVs and streaming boxes from the mobile app. That was vital for streaming targets without their own remote or on-screen interface, but times change.

Today, Google has moved beyond the remote-free Chromecast experience, and most TVs have their own standalone Netflix apps. Netflix itself is also allergic to anything that would allow people to share passwords or watch in a new place. Over the last couple of weeks, Netflix updated its app to remove most casting options, mirroring a change in 2019 to kill Apple AirPlay.

The company’s support site (spotted by Android Authority) now clarifies that casting is only supported in a narrow set of circumstances. First, you need to be paying for one of the ad-free service tiers, which start at $18 per month. Those on the $8 ad-supported plan won’t have casting support.

Even then, Casting only appears for devices without a remote, like the earlier generations of Google Chromecasts, as well as some older TVs with Cast built in. For example, anyone still rocking Google’s 3rd Gen Chromecast from 2018 can cast video in Netflix, but those with the 2020 Chromecast dongle (which has a remote and a full Android OS) will have to use the TV app. Essentially, anything running Android/Google TV or a smart TV with a full Netflix app will force you to log in before you can watch anything.

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Benoit Blanc takes on a “perfectly impossible crime” in Wake Up Dead Man trailer

Wake Up Dead Man garnered early rave reviews after screening at the Toronto International Film Festival (TIFF) in September, and an initial teaser released shortly after showcased Blanc puzzling over a classic locked-room mystery. The new trailer builds out some of the details without giving too much away.

Rev. Jud is the prime suspect in Wicks’ murder, since he loathed the man and hence had a clear motive, but he insists to Blanc that he is innocent. We learn that Wicks was wealthy, and this being a classic whodunit, we know the rest of the characters no doubt have their deep, dark secrets—one of which could have led to murder. And Johnson brings the humor, too, as Blanc, the groundskeeper, and Martha discover the desecration of Wicks’ tombstone with scrawled graffiti penises. “Makes me sick, these kids painting rocket ships all over his sacred resting place,” the unworldly Martha says.

Wake Up Dead Man will be in select theaters on November 26, 2025, and will start streaming on Netflix on December 12, 2o25. We can’t wait.

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Netflix drops a doozy of a trailer for Stranger Things S5

We’re a few weeks away from the debut of the fifth and final season of Stranger Things—at least the first of three parts of it—and Netflix has dropped one doozy of a trailer that shows things looking pretty bleak for our small-town heroes of Hawkins.

(Spoilers for prior seasons below.)

As previously reported, S4 ended with Vecna—the Big Bad behind it all—opening the gate that allowed the Upside Down to leak into Hawkins. We’re getting a time jump for S5, but in a way, we’re coming full circle, since the events coincide with the third anniversary of Will’s original disappearance in S1. The fifth season will have eight episodes, and each one will be looong—akin to eight feature-length films. Per the official premise:

The fall of 1987. Hawkins is scarred by the opening of the Rifts, and our heroes are united by a single goal: find and kill Vecna. But he has vanished — his whereabouts and plans unknown. Complicating their mission, the government has placed the town under military quarantine and intensified its hunt for Eleven, forcing her back into hiding. As the anniversary of Will’s disappearance approaches, so does a heavy, familiar dread. The final battle is looming — and with it, a darkness more powerful and more deadly than anything they’ve faced before. To end this nightmare, they’ll need everyone — the full party — standing together, one last time.

In addition to the returning main cast, Amybeth McNulty and Gabriella Pizzolo are back as Vicki and Dustin’s girlfriend, Suzie, respectively, with Jamie Campbell Bower reprising his role as Vecna. Linda Hamilton joins the cast as Dr. Kay, along with Nell Fisher as Holly Wheeler, Jake Connelly as Derek Turnbow, and Alex Breaux as Lt. Akers.

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It’s troll vs. troll in Netflix’s Troll 2 trailer

Netflix’s international offerings include some entertaining Norwegian fare, such as the series Ragnarok (2020–2023), a surprisingly engaging reworking of Norse mythology brought into the 21st century that ran for three seasons. Another enjoyable offering was a 2022 monster movie called Troll, essentially a Norwegian take on the classic Godzilla formula. Netflix just dropped a trailer for the sequel, Troll 2, which looks to be very much in the same vein as its predecessor.

(Spoilers for the first Troll movie below.)

Don’t confuse the Netflix franchise with 2010’s Trollhunter, shot in the style of a found footage mockumentary. A group of college students sets off into the wilds of the fjordland to make a documentary about a suspected bear poacher named Hans. They discover that Hans is actually hunting down trolls and decide to document those endeavors instead, but soon realize they are very much out of their depth.

Writer/director André Øvredal infused Trollhunter with the driest of wit and myriad references to Norwegian culture, especially its folklore and fairy tales surrounding trolls. There are woodland trolls and mountain trolls, some with tails, some with multiple heads. They turn to stone when exposed to sunlight—which is why one of the troll hunters carries around a powerful UV lamp—and mostly eat rocks but can develop a taste for human flesh, and they can smell the blood of a Christian.

Directed by Roar Uthaug, the first Troll film is based on the same mythology. It had great action sequences and special effects and didn’t take itself too seriously. A young girl named Nora grows up with the mythology of Norwegian trolls turned to stone buried in the local mountains. An adult Nora (Ine Marie Wilmann), now a paleontologist, teams up with a government advisor, Andreas (Kim S. Falck-Jørgensen), and a military captain, Kris (Mads Sjøgård Pettersen), to take out a troll that has been rampaging across Norway, charting a path of destruction toward the heavily populated city of Oslo.

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