Netflix has announced a monumental $82.7 billion deal to acquire Warner Bros. Discovery, a move that has sent ripples throughout the entertainment industry and drawn sharp criticism from prominent figures like Jane Fonda. The transaction, valued at $27.75 per share, will see Netflix take ownership of Warner Bros.' film and TV studios, including HBO Max and HBO, and is expected to close within 12-18 months, pending legal and regulatory challenges.

Jane Fonda, through her Committee for the 1st Amendment organization, vehemently opposed the acquisition, labeling it a "catastrophic" development that threatens the "creative industry." She expressed her concerns on Instagram, stating that the deal is an "alarming escalation of the consolidation that threatens the entire entertainment industry, the democratic public it serves and the First Amendment." Fonda further asserted that this is not just a business deal, but a "constitutional crisis exacerbated by the administration’s demonstrated disregard for the law." She urged the Justice Department and state regulators to avoid using their legal standing to influence content decisions or chill free speech, and called on Netflix and other involved companies to defend creative rights rather than trade them for profit.

The sentiment in Hollywood has been largely negative, with lawmakers, film producers, and industry guilds all voicing concerns about the potential seismic shifts this deal could bring, particularly to the theatrical sector. Many anticipate significant changes once the acquisition is finalized.

For consumers, a major question revolves around the future of their streaming services. Specifically, subscribers are wondering if Netflix and HBO Max will combine into a single, comprehensive streamer. Both Netflix and Warner Bros. Discovery CEO David Zaslav have addressed these immediate concerns. Zaslav confirmed during a global town hall with employees that "HBO Max will stay" as its own service in the near term. Netflix echoed this in a letter to subscribers, stating, "Nothing is changing today. Both streaming services will continue to operate separately." They also noted that existing subscribers would continue to pay separate fees for each service until the deal is closed.

Despite the immediate separation, Netflix has already begun integrating some HBO and HBO Max content, having added shows like "Ballers," "Insecure," "Six Feet Under," "Sex and the City," and "True Blood" to its platform. Netflix stated that by adding these deep film and TV libraries, members will have more high-quality titles and enhanced viewing options. However, popular series like "Friends," exclusively on HBO Max, will not immediately be available on Netflix until the acquisition is complete.

While the services remain separate for now, long-term speculation suggests a potential future merger. Netflix anticipates $2 billion to $3 billion in cost savings by the third year post-acquisition, and a merged streaming service could contribute significantly to these savings. Should Netflix eventually integrate HBO Max, it would likely lead to a price increase for consumers. With this deal, Netflix will gain ownership of some of the most profitable and popular entertainment franchises, including "Game of Thrones," the Harry Potter series, "The Sopranos," the DC Universe, "Casablanca," and "Citizen Kane." However, this does not guarantee that Warner Bros.' entire vast library will become available to stream on Netflix. Netflix co-CEO Ted Sarandos stated, "Together, we can give audiences more of what they love and help define the next century of storytelling," leaving consumers to closely monitor their subscriptions for future developments.