It’s only been a day since Netflix announced its deal to buy Warner Bros. for $82.7 billion, but it’s already been said that the deal could send Hollywood into a “full-blown panic”, possibly dealing a “death blow to theatrical filmmaking” and possibly spelling “the end of Hollywood itself.”
Some of the most staunch opposition came from the Writers Guild of America, which issued a statement declaring that “this merger must be blocked.”
“Antitrust laws are designed to prevent the world’s largest streaming company from swallowing up one of its largest competitors,” the WGA said. “The result will be job losses, depressed wages, worsened conditions for all entertainment workers, increased prices for consumers, and reduced quantity and variety of content for all viewers.”
Statements from other unions in Hollywood were less clear, but suggested (as the actors union SAG-AFTRA said) there were “many serious questions” about the deal’s “impact on the future of the entertainment industry.”
The deal was awarded through a competitive process that also included bids from Paramount and Comcast. Paramount had been looking to buy the entire company, but after Warner Bros. moved forward with plans to spin off its television network division, Netflix will only buy its movie and television studios and streaming operations.
Paramount was initially seen as a frontrunner to ease regulatory approval because of its ties to the Trump administration (the studio is currently run by David Ellison, the son of Oracle co-founder and Trump ally Larry Ellison). But even before the Netflix deal was announced, Paramount’s lawyers sent out an angry letter complaining of a “biased and unfair process,” and it soon became public that Netflix was the winner.
The deal, expected to close in the third quarter of 2026, will likely face intense regulatory scrutiny, as well as Trump appointees. Sen. Elizabeth Warren, a Democrat from Massachusetts and a longtime critic of Big Tech, released her own statement calling the deal an “anti-monopoly nightmare.”
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“Netflix and Warner Bros. [merger] “It would create a giant media giant that controls nearly half of the streaming market, forcing Americans to pay higher subscription prices and reducing choice in what and how they watch, potentially endangering American workers,” Warren said.
He also argued that antitrust enforcement, including the deal review process, should be conducted “fairly and transparently” and not be used to invite “influence selling or bribery.”
If the government ultimately blocks the deal, Netflix will have to pay a $5.8 billion breakup fee. It is unclear whether Warner Bros. will continue to operate as an independent company or reconsider its previous acquisition proposal.
Netflix held a conference call with analysts Friday morning to discuss the deal, and while many of the questions focused on the financial impact on both companies, executives also sought to address larger concerns.
For example, co-CEO Ted Sarandos said he is “very confident in the regulatory process.”
“This agreement supports consumers, innovation, workers, creators and growth,” he said. “And our plan here is to work very closely with all the appropriate government and regulatory authorities, but we’re very confident that we’ll get all the necessary approvals.”
Sarandos also said Netflix intends to continue operating HBO “pretty much as is.” And while this is not something Netflix has done in the past, Warner Bros. will continue to produce TV shows for other networks and streaming services, he said. “We look forward to continuing our successful business.”
As for how HBO and HBO Max will be packaged or incorporated into the Netflix app, co-CEO Greg Peters said it’s too early to go into details.
“Obviously, we think the HBO brand is very strong for consumers,” Peters said. “We believe this service can and will form part of our plans and our consumer plans.”
Beyond general concerns about media integration, perhaps the biggest question is the extent to which Netflix will support the combined entity’s theatrical releases of its films — especially after Warner Bros.’ record-setting box office success this year, with Netflix’s theatrical releases lasting only a few weeks at most and skipping major theater chains due to limited periods of exclusivity. (This was reportedly the deciding factor in Stranger Things creators the Duffer brothers signing an exclusive deal with Paramount.)
“I don’t see this as a change in the approach of Netflix movies or Warner movies,” Sarandos said, noting that Netflix has released 30 movies theatrically this year (though typically on fewer screens and for a limited time).
Similarly, “anything scheduled for theatrical release through Warner Bros. will continue to be released theatrically through Warner Bros.,” he said. But in the long term, he suggested, “the window will evolve” so that movies can be streamed faster.
“My pushback is mainly the fact that the exclusivity period is long, and we don’t really think it’s consumer-friendly,” he said.
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