Netflix's $82.7 billion agreement to acquire Warner Bros. Discovery has sent a tremor through Hollywood, raising urgent questions about the future of theatrical releases, the fate of HBO Max, and the growing concentration of power within the global streaming industry. The deal, one of the most significant in modern entertainment history, would place nearly a century's worth of Warner Bros films and series under the same roof as Netflix's vast library.

The company attempted to quell speculation on Saturday night by emailing its 82 million subscribers, stating, "Nothing is changing today" and emphasising that the acquisition remains subject to regulatory and shareholder approval.

In the message, Netflix framed the merger as a creative expansion: "We've recently announced that Netflix will acquire Warner Bros., including its film and television studios, HBO Max and HBO. This unites our leading entertainment service with Warner Bros.' iconic stories, bringing some of the world's most beloved franchises like 'Harry Potter', 'Friends', 'The Big Bang Theory', 'Casablanca', 'Game of Thrones' and the DC Universe together with 'Stranger Things', 'Wednesday', 'Squid Game', 'Bridgerton' and KPop 'Demon Hunters'."

Netflix said both platforms would continue operating separately for now. "Nothing is changing today… We hope you'll continue to enjoy watching as much as you want, whenever you want – all on your current membership plan."

Despite these assurances, analysts warn that the acquisition could reshape the global entertainment landscape. With more than 300 million subscribers and the potential addition of HBO Max's 128 million, Netflix would become the most dominant streaming force yet, bringing together franchises that collectively define modern pop culture. Mike Proulx of Forrester said the unified catalogue would make Netflix "arguably untouchable."

The question now is what Netflix plans to do with HBO's brand identity, long considered one of the strongest in premium television. Co-CEO Greg Peters said the HBO name is "very powerful", hinting that it might survive as a standalone label or be bundled into a broader tiered service. Analysts remain divided on whether the deal will ultimately raise prices or reduce costs for subscribers by consolidating two platforms into one.

The takeover also deepens concerns about the declining power of Hollywood's traditional studios. Warner Bros, once synonymous with cinema's golden age, produced classics such as Casablanca and The Exorcist. Its absorption into Netflix reflects a shifting centre of gravity: streaming has overtaken theatrical releases as the industry's main economic engine. Netflix insists it will continue releasing films in cinemas, especially big-budget franchises like DC, but comments earlier this year from Co-CEO Ted Sarandos—calling moviegoing an "outdated concept"—have already rattled filmmakers.

James Cameron was among several industry figures to voice alarm, predicting the merger could prove a "disaster" for cinema. The announcement comes at a moment when Hollywood is grappling with lower production volumes, technological disruption, and job cuts across studios. For many, the deal reinforces fears that the era of traditional moviegoing is slipping away.

Approval, however, is far from guaranteed. Regulators in the US and Europe are expected to scrutinise the merger closely, particularly over competition concerns. The first hurdle is internal: Warner Bros Discovery must spin off CNN, Discovery, Eurosport and several other units before the sale can proceed. Paramount Skydance, which had been vying to buy the entire Warner Bros Discovery group, may also attempt to persuade shareholders to reconsider.

Antitrust questions loom over the process. Lawmakers in Washington have already raised concerns that the merger could reduce consumer choice and increase costs. Netflix, which faces a $5.8 billion breakup fee if the deal collapses, has insisted it is "highly confident" regulators will clear the acquisition.

Legal experts say the outcome depends on how authorities define the market. If streaming is assessed as a standalone sector, Netflix's enlarged dominance raises immediate red flags. But if cable, broadcast television, and platforms like YouTube are included, regulators may conclude the market remains broad enough to avoid a challenge.

Adding to the uncertainty is the political environment. Former president Donald Trump, who has long shown interest in media consolidation, could influence the regulatory process. His administration has previously intervened in high-profile mergers, often citing concerns about political bias or diversity. Trump is also personally close to Larry Ellison, the billionaire behind Paramount Skydance's rival bid. A senior administration official told CNBC the deal is viewed with "heavy scepticism."