Netflix to acquire Warner Bros. studio and streaming business for $72 billion

Netflix has struck a deal with Warner Bros. Discovery, the legacy Hollywood giant behind “Harry Potter” and “Friends,” to buy its studio and streaming business for $72 billion. The acquisition, announced Friday, would bring two of the industry’s biggest players in film and TV under one roof and alter the entertainment industry landscape. Beyond its namesake television and motion picture division, Warner owns HBO Max and DC Studios. And Netflix is ubiquitous with on-demand content and has built its own production arm to release popular titles, including “Stranger Things” and “Squid Game.” “For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture,” David Zaslav, CEO of Warner Bros. Discovery, said in a statement. “By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.” The cash and stock deal is valued at $27.75 per Warner share, giving it a total enterprise value of approximately $82.7 billion. The transaction is expected to close after Warner separates its Discovery Global cable operations into a new publicly-traded company in the third quarter of 2026. Shares of Warner Bros. rose nearly 3% in premarket trading while shares of Netflix and Paramount fell more than 2%. Gaining Warner’s legacy studios would mark a notable shift for Netflix’s, particularly its presence in theaters. Under the proposed acquisition Netflix has promised to continue theatrical releases for Warner’s studio films — honoring Warner’s contractual agreements for movie releases. Netflix has kept most of its original content within its core online platform. But there’s been few exceptions, such as limited theater screenings of a “KPop Demon Hunters” sing-a-long and its coming “Stranger Things” series finale. “Our mission has always been to entertain the world,” Ted Sarandos, co-CEO of Netflix said in a statement — adding that merging with Warner will “give audiences more of what they love.” Critics say a Netflix-Warner combo could have negative consequences for movie theaters worldwide. Cinema United — a trade association that represents more than 30,000 movie screens in the U.S. and another 26,000 screens internationally — was quick to oppose the proposed deal, which it said “poses an unprecedented threat to the global exhibition business.” “Netflix’s stated business model does not support theatrical exhibition. In fact, it is the opposite,” Michael O’Leary, CEO of Cinema United, said Friday — urging regulators to look closely at the impacts. “Theatres will close, communities will suffer, jobs will be lost.” Netflix had previously steered away from tapping into other parts of the legacy entertainment landscape. As recently as October — when Warner signaled that it was open to a potential sale of its business — Netflix’s Sarandos reiterated on an earnings call that the company had been “very clear in the past that we have no interest in owning legacy media networks” and that there was “no change there.” “We believe that we can be and we will be choosy,” Sarandos said at the time, without fully ruling out a potential bid for Warner. Friday’s announcement arrives after a monthslong bidding war for Warner Bros. Discovery. Rumors of interest from Netflix, as well as NBC owner Comcast, starting bubbling up in the fall. But Skydance-owned Paramount, which completed its own $8 billion merger in August, had also reportedly made several all-cash offers backed heavily by CEO David Ellison’s family. Paramount seemed like the frontrunner for some time — and unlike Netflix or Comcast, was reportedly vying to buy Warner’s entire company, including its cable business housing networks like CNN and Discovery. Warner announced its intention to split its streaming and studio operations from its cable business in June — outlining plans for 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. Meanwhile, 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. The Netflix acquisition of Warner’s streaming and studio arm is expected to close in 12 to 18 months — after the company wraps up the spinoff of its cable business. That is now expected in the third quarter of 2026. The merger has already received approval from shareholders of both Netflix and Warner Bros. Discovery, but it faces significant regulatory hurdles. The size of the transaction could draw antitrust scrutiny. Beyond TV and movie production, the merger would bring two of the streaming world’s biggest names — Netflix and HBO Max — under the same roof.

Federal immigration agents will expand enforcement action in N. Carolina

The acting chief of the Federal Emergency Management Agency left his job Monday after just six months, according to the Department of Homeland Security, the latest disruption in a year of mass staff departures, program cuts and policy upheaval at the agency charged with managing federal disaster response. David Richardson, who in his brief term remained largely out of public sight, is leaving the post after he faced a wave of criticism for his handling of the deadly Texas floods earlier this year. He replaced previous acting head Cameron Hamilton in May. DHS did not comment on the details of Richardson’s departure, but a FEMA employee familiar with the matter told The Associated Press that Richardson resigned. The employee spoke on condition of anonymity because they weren’t authorized to discuss the changes with the media. The Washington Post first reported the news about Richardson’s resignation. A former Marine Corps officer who served in Iraq and Afghanistan and also led the DHS Countering Weapons of Mass Destruction office, Richardson had no previous emergency management experience when he assumed the role of “senior official performing the duties of administrator” in May. After replacing Hamilton, who was fired one day after telling a House appropriations committee that he did not think FEMA should be eliminated, Richardson vowed to help fulfill President Donald Trump’s goal to push more disaster recovery responsibilities to the states and told FEMA employees he would “ run right over ” anyone who tried to obstruct that mission.

Federal workers fear layoffs as the government shutdown drags on

With every passing day of the government shutdown, hundreds of thousands of federal employees furloughed or working without pay face mounting financial strain. And now they are confronting new uncertainty with the Trump administration’s promised layoffs. Little progress has been made to end the shutdown as it enters its third week, with Republicans and Democrats digging in and convinced their messaging is resonating with voters. The fate of the federal workers is among several pressure points that could eventually push the sides to agree to resolve the stalemate. “Luckily I was able to pay rent this month,” said Peter Farruggia, a furloughed federal worker. “But for sure I am going to have bills that are going to go unpaid this month, and I really don’t have many options.” The shutdown has a familiar feel for many federal employees who endured past stalemates — including during President Donald Trump’s first term — but this time, the stakes are higher. The Republican White House is leveraging federal workers’ jobs to pressure Democrats to soften their demands. The shutdown began on Oct. 1 after Democrats rejected a short-term funding fix and demanded that the bill include an extension of federal subsidies for health insurance under the Affordable Care Act. Trump and other Republican leaders have said the government must reopen before they will negotiate with Democrats on the health subsidies. Farruggia is the head of the American Federation of Government Employees local representing employees at the Centers for Disease Control and Prevention, an agency that faced a wave of layoffs over the weekend. Like 8,000 other CDC employees who have been furloughed from the agency, he was already living paycheck to paycheck, and the partial pay that arrived Friday was his last until the government comes back online. With the agency’s leadership in turmoil and still rattled from a shooting, the shutdown and new firings mean “people are scared, nervous, anxious, but also really just exasperated,” Farruggia said. After Russ Vought, the director of the Office of Management and Budget, said last week on social media that the “RIFs have begun,” referring to reduction-in-force plans aimed at reducing the size of the federal government, Vice President JD Vance doubled down on the threat Sunday, saying “the longer this goes on, the deeper the cuts are going to be.” The layoffs have begun across federal agencies. Labor unions have already filed a lawsuit to stop the move by Trump’s budget office. National Treasury Employees Union President Doreen Greenwald, which represents workers across dozens of federal agencies, said several of the union’s members had been laid off as of Friday. The Treasury Department would lose 1,446 workers, according to the filing. Greenwald said it was unfortunate that the Trump administration was using “federal employees as political pawns by furloughing and proposing to fire them all to try to cause pressure in a political game of chicken.” Randy Erwin, president of the National Federation of Federal Employees, which represents 110,000 workers nationwide, called on both sides of Congress to find a resolution. He said Trump appeared to aim to “degrade, frighten, antagonize hardworking federal employees.” Chris Bartley, political program coordinator for the International Association of Fire Fighters, said thousands of firefighters were showing up for work without pay out of a sense of devotion but stressed that could have broader consequences. “Families go without income,” Bartley said. “Morale and retention suffer. Public safety is compromised.”

Government shutdown nears, congressional leaders to meet at White House

Democratic and Republican congressional leaders are heading to the White House for a meeting with President Donald Trump on Monday in a late effort to avoid a government shutdown, but both sides have shown hardly any willingness to budge from their entrenched positions. If government funding legislation isn’t passed by Congress and signed by Trump on Tuesday night, many government offices across the nation will be temporarily shuttered and nonexempt federal employees will be furloughed, adding to the strain on workers and the nation’s economy. Trump, ahead of the meeting, made it clear he had no intention to negotiate on Democrats’ current terms. “They’re going to have to do some things because their ideas are not very good ones,” the president said Monday. Republicans are daring Democrats to vote against legislation that would keep government funding mostly at current levels, but Democrats have held firm. They’re using one of their few points of leverage to demand Congress take up legislation to extend health care benefits. “We finally got our meeting. We hope they’re serious about getting something real done on health care,” Senate Democratic leader Chuck Schumer said as he departed the Capitol for the White House. Trump has shown little interest in entertaining Democrats’ demands on health care, even as he agreed to hold a sit-down meeting Monday with Schumer, along with Senate Majority Leader John Thune, House Speaker Mike Johnson and House Democratic leader Hakeem Jeffries. The Republican president has said repeatedly he fully expects the government to enter a shutdown this week. “If it has to shut down, it’ll have to shut down,” Trump said Friday. “But they’re the ones that are shutting down government.” The Trump administration has tried to pressure Democratic lawmakers into backing away from their demands, warning that federal employees could be permanently laid off in a funding lapse. “Chuck Schumer said a few months ago that a government shutdown would be chaotic, harmful and painful. He’s right, and that’s why we shouldn’t do it,” Thune, a South Dakota Republican, said Sunday on NBC’s “Meet the Press.” Still, Democrats argued Trump’s agreement to hold a meeting shows he’s feeling the pressure to negotiate. They say that because Republicans control the White House and Congress, Americans will mostly blame them for any government shutdown. Democrats are pushing for an extension to Affordable Care Act tax credits that have subsidized health insurance for millions of people since the COVID-19 pandemic. The credits, which are designed to expand coverage for low- and middle-income people, are set to expire at the end of the year. At a Monday news conference, Jeffries, a New York Democrat, called health care cuts a “five-alarm fire” that is rippling across communities nationwide. “We’re not going to simply go along to get along with a Republican bill that continues to gut the health care of everyday Americans who are already living with this Trump economy, where costs aren’t going down but they’re going up,” he said. The pandemic-era ACA subsidies are set to expire in a matter of months if Congress fails to act. Some Republicans are open to extending the tax credits but want changes. Thune said Sunday that the program is “desperately in need of reform” and Republicans want to address “waste, fraud and abuse.” He has pressed Democrats to vote for the funding bill and take up the debate on tax credits later. It remains to be seen whether the White House meeting will help or hurt the chances for a resolution. Negotiations between Trump and Democratic congressional leaders have rarely gone well, and Trump has had little contact with the opposing party during his second term. The most recent negotiation in August between Schumer and the president to speed the pace of Senate confirmation votes for administration officials ended with Trump telling Schumer to “go to hell” in a social media post.

Texas House approves redrawn maps sought by Trump ahead of 2026 elections

The Texas House on Wednesday approved redrawn congressional maps that would give Republicans a bigger edge in 2026, muscling through a partisan gerrymander that launched weeks of protests by Democrats and a widening national battle over redistricting. The approval came at the urging of President Donald Trump, who pushed for the extraordinary mid-decade revision of congressional maps to give his party a better chance at holding onto the U.S. House of Representatives in the 2026 midterm elections. The maps, which would give Republicans five more winnable seats, need to be approved by the GOP-controlled state Senate and signed by Republican Gov. Greg Abbott before they become official. But the Texas House vote had presented the best chance for Democrats to derail the redraw. Democratic legislators delayed the vote by two weeks by fleeing Texas earlier this month in protest, and they were assigned round-the-clock police monitoring upon their return to ensure they attended Wednesday’s session. The approval of the Texas maps on an 88-52 party-line vote is likely to prompt California’s Democratic-controlled state Legislature this week to approve of a new House map creating five new Democratic-leaning districts. But the California map would require voter approval in November. Democrats have also vowed to challenge the new Texas map in court and complained that Republicans made the political power move before passing legislation responding to deadly floods that swept the state last month.

Appellate judges question Trump’s authority to impose tariffs without Congress

Appellate court judges expressed broad skepticism Thursday over President Donald Trump’s legal rationale for his most expansive round of tariffs. Members of the 11-judge panel of the U.S. Court of Appeals for the Federal Circuit in Washington appeared unconvinced by the Trump administration’s insistence that the president could impose tariffs without congressional approval, and it hammered its invocation of the International Emergency Economic Powers Act to do so. “IEEPA doesn’t even mention the word ‘tariffs’ anywhere,” Circuit Judge Jimmie Reyna said, in a sign of the panel’s incredulity to a government attorney’s arguments. Brett Shumate, the attorney representing the Trump administration, acknowledged in the 99-minute hearing “no president has ever read IEEPA this way” but contended it was nonetheless lawful. The 1977 law, signed by President Jimmy Carter, allows the president to seize assets and block transactions during a national emergency. It was first used during the Iran hostage crisis and has since been invoked for a range of global unrest, from the 9/11 attacks to the Syrian civil war.Trump says the country’s trade deficit is so serious that it likewise qualifies for the law’s protection. In sharp exchanges with Shumate, appellate judges questioned that contention, asking whether the law extended to tariffs at all and, if so, whether the levies matched the threat the administration identified. “If the president says there’s a problem with our military readiness,” Chief Circuit Judge Kimberly Moore posited, “and he puts a 20% tax on coffee, that doesn’t seem to necessarily deal with (it).” Shumate said Congress’ passage of IEEPA gave the president “broad and flexible” power to respond to an emergency, but that “the president is not asking for unbounded authority.” But an attorney for the plaintiffs, Neal Katyal, characterized Trump’s maneuver as a “breathtaking” power grab that amounted to saying “the president can do whatever he wants, whenever he wants, for as long as he wants so long as he declares an emergency.” No ruling was issued from the bench. Regardless of what decision the judges’ deliberations bring, the case is widely expected to reach the U.S. Supreme Court. Trump weighed in on the case on his Truth Social platform, posting: “To all of my great lawyers who have fought so hard to save our Country, good luck in America’s big case today. If our Country was not able to protect itself by using TARIFFS AGAINST TARIFFS, WE WOULD BE “DEAD,” WITH NO CHANCE OF SURVIVAL OR SUCCESS. Thank you for your attention to this matter!’' In filings in the case, the Trump administration insists that “a national emergency exists” necessitating its trade policy. A three-judge panel of the U.S. Court of International Trade, a specialized federal court in New York, was unconvinced, however, ruling in May that Trump exceeded his powers.

Court clears the way for Trump’s plans to downsize the federal workforce

The Supreme Court on Tuesday cleared the way for President Donald Trump’s plans to downsize the federal workforce despite warnings that critical government services will be lost and hundreds of thousands of federal employees will be out of their jobs. The justices overrode lower court orders that temporarily froze the cuts, which have been led by the Department of Government Efficiency. The court said in an unsigned order that no specific cuts were in front of the justices, only an executive order issued by Trump and an administration directive for agencies to undertake job reductions. Justice Ketanji Brown Jackson was the only dissenting vote, accusing her colleagues of a “demonstrated enthusiasm for greenlighting this President’s legally dubious actions in an emergency posture.” Jackson warned of enormous real-world consequences. “This executive action promises mass employee terminations, widespread cancellation of federal programs and services, and the dismantling of much of the Federal Government as Congress has created it,” she wrote. The high court action continued a remarkable winning streak for Trump, who the justices have allowed to move forward with significant parts of his plan to remake the federal government. The Supreme Court’s intervention so far has been on the frequent emergency appeals the Justice Department has filed objecting to lower-court rulings as improperly intruding on presidential authority. The Republican president has repeatedly said voters gave him a mandate for the work, and he tapped billionaire ally Elon Musk to lead the charge through DOGE. Musk recently left his role. “Today’s U.S. Supreme Court ruling is another definitive victory for the President and his administration. It clearly rebukes the continued assaults on the President’s constitutionally authorized executive powers by leftist judges who are trying to prevent the President from achieving government efficiency across the federal government,” White House spokesperson Harrison Fields said in a statement. Tens of thousands of federal workers have been fired, have left their jobs via deferred resignation programs or have been placed on leave. There is no official figure for the job cuts, but at least 75,000 federal employees took deferred resignation and thousands of probationary workers have already been let go. In May, U.S. District Judge Susan Illston found that Trump’s administration needs congressional approval to make sizable reductions to the federal workforce. By a 2-1 vote, a panel of the U.S. 9th Circuit Court of Appeals refused to block Illston’s order, finding that the downsizing could have broader effects, including on the nation’s food-safety system and health care for veterans. Illston directed numerous federal agencies to halt acting on the president’s workforce executive order signed in February and a subsequent memo issued by DOGE and the Office of Personnel Management. Illston was nominated by former Democratic President Bill Clinton. The labor unions and nonprofit groups that sued over the downsizing offered the justices several examples of what would happen if it were allowed to take effect, including cuts of 40% to 50% at several agencies. Baltimore, Chicago and San Francisco were among cities that also sued. “Today’s decision has dealt a serious blow to our democracy and puts services that the American people rely on in grave jeopardy. This decision does not change the simple and clear fact that reorganizing government functions and laying off federal workers en masse haphazardly without any congressional approval is not allowed by our Constitution,” the parties that sued said in a joint statement. Among the agencies affected by the order are the departments of Agriculture, Energy, Labor, the Interior, State, the Treasury and Veterans Affairs. It also applies to the National Science Foundation, Small Business Association, Social Security Administration and Environmental Protection Agency.