Why Netflix-Warner Bros. deal is facing fierce pushback from Hollywood
07 Dec 2025

Netflix has announced a $82.7 billion deal to acquire Warner Bros., a move that has sent shockwaves through Hollywood.

The Writers Guild of America (WGA) has opposed the merger, saying "this merger must be blocked."

They argued that the acquisition would eliminate jobs, lower wages, worsen conditions for entertainment workers, increase consumer prices and reduce content diversity and volume.

Impact on the future of entertainment industry
Concerns raised

Other Hollywood unions have also expressed concerns about the deal, saying it raises "many serious questions" about its impact on the future of the entertainment industry.

The acquisition comes after a competitive bidding process with Paramount and Comcast.

Unlike Paramount, which wanted to acquire the whole company, Netflix is only interested in Warner Bros.' film and television studios as well as its streaming business after a planned spin-off of its TV networks division.

Regulatory scrutiny and potential breakup fee
Future implications

The deal, expected to close in Q3 2026, will likely face intense regulatory scrutiny.

Senator Elizabeth Warren has called it "an anti-monopoly nightmare," warning that it could lead to higher subscription prices and fewer choices for consumers while putting American workers at risk.

If the government blocks the acquisition, Netflix will have to pay a $5.8 billion breakup fee.

It's unclear if Warner Bros. would remain independent or reconsider previous acquisition offers.

Netflix's response to acquisition concerns
Company stance

Netflix co-CEO Ted Sarandos expressed confidence in the regulatory process during an analyst call on Friday.

He said, "This deal is pro-consumer, pro-innovation, pro-worker, it's pro-creator, it's pro-growth."

Sarandos also assured that Netflix plans to keep HBO "operating largely as it is" and Warner Bros. will continue producing TV shows for other networks and streaming services.

Future plans for theatrical releases
Release strategy

The acquisition raises questions about Netflix's support for theatrical releases of the combined entity's films.

Sarandos said he "wouldn't look at this as a change in approach for Netflix movies or for Warner movies."

He noted that Netflix has released 30 movies in theaters this year, albeit on fewer screens and for a limited period of time.