What might change for streamers under the proposed $72B Netflix-Warner Brothers Discovery deal

NEW YORK (AP) — Two of the most popular streaming services have agreed to combine, in a move that could change the streaming service landscape.

Netflix said Friday it will acquire the studio and streaming business of Warner Bros. Discovery, the legacy Hollywood giant behind “Harry Potter” and “Friends,” for $72 billion.

The transaction is expected to close in the next 12 to 18 months — after Warner completes its previously-announced separation of its cable operations. Not included in the deal are networks like CNN and Discovery.

Warner Bros. Discovery said in October it was open to selling all or parts of its business.

Here's a look at what the two streaming services offer and what might change if the deal completes regulatory hurdles and closes.

Netflix, based in Los Gatos, California, is the world's biggest streaming service, although its growth has slowed from peak years. It stopped giving specific subscriber numbers in 2024, but quarterly results in October signaled its worldwide subscriber count has increased from the roughly 302 million it had at the end of 2024.

Although it is best known for its scripted TV shows and movies such as “Stranger Things," “Squid Game,” “Bridgerton,” and "KPop Demon Hunters,” Netflix has been expanding into other arenas. It started offering a low-priced option of its service with advertising three years ago and has introduced video games and live sports, too.

In a statement on Friday Netflix said the acquisition will add shows and movies including “The Big Bang Theory,” “The Sopranos,” “Game of Thrones,” “The Wizard of Oz” and the DC Universe comic book franchise to its library.

Warner Bros. Discovery, based in New York, was formed just three years ago after when AT&T spun off WarnerMedia and it was merged with Discovery Communications in a $43 billion deal.

In June, the company outlined plans to split its cable and streaming offerings — with HBO, HBO Max, as well as Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, to become part of a new streaming and studios company; while networks like CNN, Discovery and TNT Sports and digital products such as the Discovery+ streaming service and Bleacher Report would make up a separate cable counterpart.

Warner expected the split to be complete by mid-2026, and the Netflix acquisition is expected to close after that.

The deal would add classic movies to the Netflix library, including “Casablanca,” “Citizen Kane,” and the Harry Potter franchise.

FILE - The water tower at the Warner Bros. Studios lot appears on Aug. 23, 2016, in Los Angeles. (Photo by Chris Pizzello/Invision/AP, File)

FILE - The water tower at the Warner Bros. Studios lot appears on Aug. 23, 2016, in Los Angeles. (Photo by Chris Pizzello/Invision/AP, File)

An aerial view shows Warner Bros. Studios in Burbank, Calif., Friday, Dec. 5, 2025. (AP Photo/Jae C. Hong)

The Warner Bros. water tower is seen at Warner Bros. Studios in Burbank, Calif., Friday, Dec. 5, 2025. (AP Photo/Jae C. Hong)

Stocks rose on Wall Street in afternoon trading Friday, adding to the all-time highs they set a day earlier.

The S&P 500 rose 0.3% Friday. The index is coming off six gains in a row and is headed for a ninth straight winning week, which would be the longest such streak since 2023.

The Dow Jones Industrial Average rose 349 points, or 0.7%, as of 1:18 p.m. Eastern. The Nasdaq composite rose 0.3%. Every major index is on track for records and to close out May with solid gains.

Markets in Europe and Asia mostly rose.

Technology stocks lead the gains. Dell Technologies surged 28.7% after after delivering profits that blew past expectations. The company also raised its outlook, citing powerful demand for AI computing.

Microsoft rose 3.9% and Broadcom rose 2.9%. Big technology stocks have been behind much of the market’s record-breaking streak. Their pricey stock values give them more influence in directing the market higher or lower. In May alone, technology stocks within the S&P 500 rose more than 15%, while most of the sectors in the benchmark index actually lost ground.

“The rally has been largely tech-led and supported by resilient earnings, but the key question is whether it can be sustained,” wrote Angelo Kourkafas, senior global strategist at Edward Jones, in a research note.

Wall Street has been gaining ground against worries that the U.S. war with Iran is worsening inflation and jeopardizing economic growth.

The U.S. and Iran are reportedly working toward a deal to extend a ceasefire. That eased pressure on oil prices. Brent crude, the international standard, fell 2.1% to $90.78 a barrel. It is still well above the $70 per barrel level in late February before the war began. Benchmark U.S. crude fell 2.3% to $86.89 per barrel.

Treasury yields held relatively steady as oil prices fell. The yield on the 10-year Treasury fell to 4.44% from 4.45% from late Thursday.

High oil prices remain a key concern for Wall Street. The war has stifled the flow of oil shipments through the Strait of Hormuz. Roughly a fifth of the world’s oil and natural gas is shipped through the waterway.

That has pushed up prices for gasoline and a wide range of goods, feeding inflation and squeezing consumers and businesses. Prices were already rising before the war began from the ongoing impact of tariffs.

Several reports this week reflected inflation’s rise and impact on consumers. A measure of inflation preferred by the Federal Reserve accelerated in April to its highest level in three years. Consumer confidence is slipping amid the squeeze from rising inflation.

Wall Street’s worries about rising inflation have been somewhat muted by the latest round of corporate profit reports. Companies in the S&P 500 have reported profit growth of 28% overall for the most recent quarter, according to FactSet. The overwhelming majority of companies in the S&P 500 have already reported their latest results. That could mean investors’ focus may shift back toward inflation, consumers’ behavior and the Fed’s path ahead for interest rates.

The Fed has been holding its benchmark interest rate steady as it closely watches rising inflation. It is expected to continue holding rates steady at its next meeting in June and through the year, according to CME’s FedWatch tool. Cutting interest rates could help lower borrowing costs and give the economy a jolt, but it could also worsen inflation at time when prices are already high and rising.

Trader James Lamb works on the floor of the New York Stock Exchange, Friday, May 22, 2026. (AP Photo/Richard Drew)

Trader Edward Curran, left, and specialist Meric Greenbaum, center, work on the floor of the New York Stock Exchange, Friday, May 22, 2026. (AP Photo/Richard Drew)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), top center, and the foreign exchange rate between U.S. dollar and South Korean won, top left, at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Thursday, May 28, 2026. (AP Photo/Ahn Young-joon)

Asia markets index of Japan, South Korea and Australia is seen on a screen at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Thursday, May 28, 2026. (AP Photo/Ahn Young-joon)

A currency trader watches monitors near a screen showing the Korea Composite Stock Price Index (KOSPI), top center, and the foreign exchange rate between U.S. dollar and South Korean won, top left, at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Thursday, May 28, 2026. (AP Photo/Ahn Young-joon)

Trader Robert Arciero works on the floor of the New York Stock Exchange, Friday, May 22, 2026. (AP Photo/Richard Drew)