Netflix’s Acquisition of Warner Bros. Sparks Outrage in Hollywood
Image Courtesy of Screen Rant
By Luis Zonenberg
Within the last ten years, Hollywood has seen at least two major film companies be bought out by larger corporations. The first was Disney’s purchase of Fox in 2019, with the second being the acquisition of MGM Studios by Amazon in 2022. Even Paramount merged with its longtime collaborator, Skydance, just last year. As soon as Warner Bros. Pictures announced it was now open for sale on October 21, 2025, the public knew another merger was on the horizon, and it seems that Netflix is now close to finalizing a deal.
On December 5, 2025, Netflix announced that it was officially set to acquire Warner Bros. for a total enterprise value of approximately $82.7 billion (equity value $72 billion). The current stock and cash transaction is currently valued at $27.75 per WBD share, with the transaction expected to close in the third quarter of 2026. This is due to the separation of WBD’s Global Network’s division, Discovery Global, which is expected to be a new publicly traded company by that time next year.
The announcement spread like wildfire, posted on Twitter threads and companies’ LinkedIn profiles. In their official Instagram page, Netflix posted, “Today, Netflix announced our acquisition of Warner Bros. Together, we’ll define the next century of storytelling, creating an extraordinary entertainment offering for audiences everywhere.”
This news did not sit well with many individuals, drawing criticism from not only many prominent figures in the film industry but also high-ranking politicians in office. CNN reported that the merger raises some major concerns, ones that “could force antitrust regulators to put away their rubber stamps and take out their magnifying glasses”. The new company’s market share would surpass the 30% benchmark that regulators set to determine whether to block a merger in the Department of Justice’s most recent trust guidelines, issued in 2023.
The Writers Guild of America (WGA) was quick to post a statement about these antitrust concerns. “The world’s largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent,” the WGA addressed in their written statement. “The outcome would eliminate jobs, push down wages, worsen conditions for all entertainment workers, raise prices for consumers, and reduce the volume and diversity of content for all viewers… This merger must be blocked.”
The current President of the Directors Guild of America (DGA), Christopher Nolan, announced that he would be meeting with Netflix to raise his concerns following the merger. “The news that Netflix had secured exclusive rights to negotiate for WBD raises significant concerns for the DGA,” the DGA announced in their statement. “We believe that a vibrant, competitive industry — one that fosters creativity and encourages genuine competition for talent —is essential to safeguarding the careers and creative rights of Directors and their teams. We will be meeting with Netflix to outline our concerns and better understand their vision for the future of the company.”
Even Paramount raised its concerns before the merger was official, with written letters addressed to WBD’s Burbank lot initially indicating that a court filing or a hostile-takeover play would be in the cards if they chose to run with either option. Deadline reported that the letter said, “Netflix’s dominance in streaming and Comcast’s presence as a leading broadband and MVPD player each present unique and serious antitrust concerns that guarantee a long, expensive review process and imperil closing either deal.”
Despite the upcoming merger with Netflix, Paramount launched a new bid on WBD worth over $108 billion. Paramount is offering $30 per share of WBD, a $3 increase per share of what Netflix offered the company. “WBD shareholders deserve an opportunity to consider our superior all-cash offer for their shares in the entire company,” Paramount CEO David Ellison said in a statement. “Our public offer, which is on the same terms we provided to the Warner Bros. Discovery Board of Directors in private, provides superior value, and a more certain and quicker path to completion.”
Netflix co-CEO Ted Sarandos was quick to comment on the latest bid from Paramount. “Today’s move was entirely expected,” Sarandos commented at the UBS’ Global Media Conference. “We have a deal done, and we are incredibly happy with the deal. We think it’s great for our shareholders, great for consumers. We think it’s a great way to create and protect jobs in the entertainment industry.”
The new bid from Paramount adds a new wrinkle to the fold in this drama, with increasing comments from other unions in the film industry only adding more fuel to the fire. If the merger does indeed go through, Netflix will acquire several noteworthy entities like Mad Max, Harry Potter, Adventure Time, Friends, Batman, etc. While Netflix has made it clear that it wishes to honor WBD’s theatrical commitments, it is likely that it will shorten the release windows since normal Netflix theatrical releases never last more than a week or two. Whether Paramount’s new bid or Nolan’s meeting with Netflix will bear any fruit, we will be sure to provide any new updates in the weeks to come.
