Pepperdine's Nelson Granados Weighs In on Netflix–Warner Bros. $72B Deal

Netflix's plan to acquire Warner Bros. Discovery’s studio and streaming assets in a $72 billion deal could reshape the streaming industry, combining Warner Bros.’ film and TV studios, HBO Max, and HBO with Netflix’s global platform.

Nelson Granados, Professor of Information Systems Technology Management at Pepperdine Graziadio Business School, told Yahoo Finance that the acquisition could increase Netflix’s market power and potentially impact subscription pricing:

"Netflix has consolidated itself not just as a top streaming service globally, but it is also now a multibillion-dollar content creator. Consolidation leads to higher market power, so if Netflix increases its library of content and production capability through a Warner Bros. acquisition, it will seek to capture this value in the form of higher subscription prices."

Netflix has assured subscribers that both services will continue operating separately, while emphasizing expanded content and creative opportunities. Meanwhile, Paramount Skydance launched a competing all-cash bid, signaling a high-stakes battle for Warner Bros. Discovery.

Granados also highlighted potential regulatory hurdles, noting that distribution concerns with two of the largest streaming services under single ownership could make approval complex.

If approved, the deal could give Netflix control of roughly a third of U.S. streaming activity, raising questions about competition, subscription costs, and the future of content distribution.

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