In one of the biggest media shakeups in entertainment history, Netflix is moving forward with its proposed $82.7 billion acquisition of Warner Bros. Discovery’s studio and streaming assets, and co-CEO Ted Sarandos has now laid out exactly how the deal would reshape Hollywood. Speaking in multiple interviews as of January 16, 2026, Sarandos famously stated, “When we buy the studio,” signaling Netflix’s confidence as it battles Paramount Skydance in a fierce bidding war.
Netflix’s Strategy: More Movies, Bigger Budgets, Real Theatrical Releases
Sarandos made it clear that Netflix is not planning to cut back production. Instead, the combined Netflix-Warner Bros. operation would release more films than either company does today, with content spending expected to rise for several years post-acquisition. This directly contrasts with competitors’ cost-cutting strategies, including Paramount’s proposed $6 billion in reductions.
Perhaps most surprising is Netflix’s major shift toward theatrical exclusivity. Sarandos confirmed that Warner Bros. movies would maintain a 45-day exclusive theatrical window, stating his goal is to “win opening weekend” and restore box-office dominance a reversal of Netflix’s previous day-and-date streaming strategy.
What Netflix Is Buying And What It Isn’t
Under the deal, Netflix would acquire Warner Bros. Film & TV Studios, HBO, and the Max streaming platform, gaining access to powerhouse franchises such as Harry Potter, DC Universe, Game of Thrones, and The Sopranos. Meanwhile, Warner Bros. Discovery’s cable networks including CNN, TNT, and Discovery Channel will spin off into a new company, Discovery Global, ahead of the merger’s completion.
Netflix is reportedly shifting to a 100% cash offer to speed up regulatory approval and counter Paramount Skydance’s massive $108 billion hostile bid.
Regulatory Scrutiny and Industry Impact
The deal faces heavy examination from the U.S. Department of Justice and European Commission, as the combined Netflix-HBO entity would command nearly 10% of total U.S. TV viewing. Still, Sarandos insists Netflix is a “builder,” not a dismantler, and aims to protect Warner Bros.’ creative legacy rather than strip it for savings.
What This Means for Streaming’s Future
If approved, this acquisition could redefine the entertainment landscape, blending Netflix’s global scale with HBO’s prestige storytelling and Warner Bros.’ theatrical muscle. For audiences, that means bigger movies, stronger franchises, and more premium content across screens.
With closing targeted for 2026–2027, Netflix’s bold bet could mark the beginning of a new era in Hollywood dominance.
