Netflix–Warner Bros. merger: Multiplex body raises red flag over proposed takeover

The Multiplex Association of India (MAI) has voiced serious concerns over Netflix’s proposed acquisition of Warner Bros. Discovery, warning that the deal could significantly disrupt India’s theatrical ecosystem. Representing cinema operators across the country, MAI said India’s multiplexes rely on a steady pipeline of diverse, high-quality films to draw audiences and sustain the broader film economy.

On Friday, it was confirmed that Netflix and Warner Bros. Discovery have reached a “definitive agreement” for the sale, receiving unanimous approval from both companies’ boards. The transaction covers HBO, HBO Max, the Warner Bros. film and television studios, and DC Entertainment—signalling one of the most dramatic restructurings the entertainment industry has seen in decades.

MAI President Kamal Gianchandani noted that Warner Bros. has long been a critical content partner for Indian cinemas, contributing major global releases as well as local titles that bolster the theatrical calendar. He stressed that cinemas in India function not only as entertainment hubs but also as key cultural and economic engines, supporting millions of jobs across production, distribution, exhibition, food and beverage, and related services.

Gianchandani cautioned that Netflix’s track record offers little reassurance. The streaming giant has traditionally favoured minimal theatrical releases and shorter windows, operating with a clear streaming-first strategy. A merger of this scale, MAI argues, risks reducing the volume of premium content available for theatrical release and could lead to substantially shortened—or even eliminated—theatrical windows.

Under the deal announced Friday, Warner Bros. shareholders will receive $27.75 per share in a mix of cash and Netflix stock, according to details shared by the companies. Netflix revealed plans to acquire Warner Bros. Discovery’s studio and streaming operations in a transaction valuing the assets at $82.7 billion, including debt.

The cash-and-stock acquisition is expected to close after Warner Bros. Discovery completes its previously announced separation of its cable networks, a process the companies anticipate finishing by the third quarter of 2026.

The announcement marks a seismic moment for Hollywood and the global entertainment industry. Netflix, already the world’s largest paid streaming platform with over 300 million subscribers, would gain enormous additional scale by absorbing Warner Bros. Discovery. The combined entity would wield unprecedented influence over theater chains, talent unions, and competitive studios—potentially accelerating consolidation across the sector as smaller companies race to keep up.

If completed, the deal would also symbolize the definitive takeover of Hollywood by technology-driven disruptors. For years, Silicon Valley entrants have built their entertainment power organically rather than by purchasing legacy studios. Netflix’s move would make Warner Bros. the first major traditional studio to be acquired outright by a tech giant, underscoring a dramatic power shift in the media landscape.