It’s only been a day since Netflix announced an $82.7 billion deal to acquire Warner Bros, and the acquisition is already being described as a Hollywood missionfull panic mode“probably delivering”death blow to theatrical film productionand perhaps even announcing “the end of Hollywood“herself.
Some of the strongest objections came from the Writers Guild of America, which issued a statement stating, “This merger should be blocked.”
“The world’s largest streaming company gobbling up one of its biggest competitors is what antitrust laws were designed to prevent,” the WGA said. “The result will eliminate jobs, lower wages, worsen conditions for all entertainment workers, raise prices for consumers, and reduce the volume and diversity of content for all viewers.”
While statements from other Hollywood unions were less clear, they nevertheless argued that there are “many serious questions” about the “impact of the takeover on the future of the entertainment industry” (as it was raised by the actors’ union SAG-AFTRA).
The deal came after a competitive process in which Paramount and Comcast also made bids. Paramount has been looking to buy the entire company, while Netflix will buy only the film and TV studios, as well as the streaming business, after Warner Bros. moves forward with a plan to spin off its TV network division.
Initially, Paramount was considered the firstwith its ties to the Trump administration (the studio is now run by David Ellison, son of Oracle co-founder and Trump ally Larry Ellison) easing the way for regulatory approval. But even before the Netflix deal was announced, Paramount’s lawyers sent an angry letter complaining of “a lopsided and unfair process,” and Netflix soon emerged publicly as the winner.
That deal, which is expected to close in the third quarter of 2026, will likely face significant regulatory scrutinyand not just by Trump appointees. Senator Elizabeth Warren — Democrat from Massachusetts and longtime critic of Big Tech — issued a statement of her own describing the deal as “an antitrust nightmare.”
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“A Netflix-Warner Bros. [merger] would create a massive media giant with control of nearly half the streaming market – threatening to force Americans into higher subscription prices and fewer choices about what and how to watch, while putting American workers at risk,” Warren said.
He also argued that antitrust enforcement – including the review process for this deal – should be conducted “fairly and transparently” rather than being used for “invitations of leverage and bribery”.
If the government ultimately blocks the takeover, Netflix will have to pay $5.8 billion breakup fee. It is unclear whether Warner Bros. would continue to operate as an independent company or reconsider previous takeover offers.
Netflix held an analyst call to discuss the deal Friday morning, and while many of the questions focused on the financial impact on both companies, executives also tried to address larger concerns.
For example, co-CEO Ted Sarandos said he is “very confident in the regulatory process.”
“This deal is pro-consumer, pro-innovation, pro-worker, pro-creator, pro-growth,” he said. “And our plans here are to work very closely with all the appropriate governments and regulators, but really confident that we will get all the necessary approvals that we need.”
Sarandos also said that Netflix intends to keep HBO “operating largely as is.” And while it’s not something Netflix has done before, Warner Bros. will continue to produce TV shows for other networks and streaming services, he said: “We want to maintain this successful business.”
As for how HBO and HBO Max will be packaged or folded into the Netflix app, co-CEO Greg Peters said it’s too early to go into detail.
“Needless to say, we think the HBO brand is very strong for consumers,” Peters said. “We believe the offering could and will be part of our plans and how we structure them for consumers.”
Beyond the general concerns about media consolidation, perhaps the biggest question is to what extent Netflix will support theatrical releases for the combined entity’s films — especially after Warner Bros set a record for success at the box office this year, while Netflix’s theatrical releases only last for a few weeks at best and skip the big box theaters due to the limited exclusive window. (This was reportedly the deciding factor when “Stranger Things” creators the Duffer Brothers signed an exclusive deal with Paramount.)
For his part, Sarandos said he “wouldn’t see this as a change in approach for Netflix movies, or Warner movies for that matter,” and noted that Netflix has released 30 movies in theaters this year (though again, usually on fewer screens and for a limited time).
Likewise, “whatever is scheduled to go theatrically through Warner Bros. will continue to go to theaters through Warner Bros,” he said. But in the long term, he suggested that “windows will evolve” so that movies can be streamed faster.
“My response was mainly to the fact of long lock-up windows, which we don’t really see as consumer friendly,” he said.
