Major Hollywood trade groups, including the Writers Guild of America (WGA), are mounting opposition to Netflix Inc.'s colossal $82.7 billion proposed acquisition of Warner Bros. Discovery Inc.'s studio and streaming assets, declaring the deal must be stopped to protect industry workers and consumers.
Unprecedented Consolidation Sparks Alarm
The WGA, which had previously stated its opposition to any sale of Warner Bros., reinforced its position on Friday, December 5, 2025. In a strongly worded statement, the guild argued that antitrust laws were designed to prevent such a consolidation of power. "The world’s largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent," the guild said.
The union warned that the merger's outcome would be dire, predicting it would eliminate jobs, push down wages, and worsen conditions for all entertainment workers. Furthermore, they cautioned it would raise prices for consumers and reduce both the volume and diversity of content available to viewers.
Theatre Owners and Creators Voice Skepticism
The concerns extend beyond writers. Theatrical exhibition leaders and top filmmakers have expressed deep skepticism about the deal. Michael O’Leary, CEO of the trade group Cinema United, called the acquisition an "unprecedented threat to the global exhibition business," impacting everything from large cinema chains to independent single-screen theatres.
This anxiety is rooted in a fundamental clash of models. Warner Bros. is a theatrical powerhouse, accounting for roughly a fourth of North American ticket sales, or about $2 billion annually. Netflix, conversely, has historically minimized theatrical releases for its original films. Acclaimed director James Cameron, in a late November podcast appearance, labeled the potential buyout a "disaster," referencing Netflix co-CEO Ted Sarandos's past comments about the theatrical model.
Netflix's Pledge and the Changing Media Landscape
In response to these fears, Netflix and Ted Sarandos have made public assurances. On a Friday investor call following the deal's announcement, Sarandos sought to clarify his company's past stance on cinemas. He stated that Netflix's resistance was primarily tied to "the long exclusive windows" for theatrical releases, which the company views as unfriendly to consumers.
He and the company pledged to "maintain Warner Bros. current operations and build on its strengths, including theatrical releases for films." Sarandos added, "Right now, you should count on everything that is planned on going to the theatre through Warner Bros. will continue to go to the theatres through Warner Bros."
This massive proposed transaction occurs against a backdrop of significant turmoil in Hollywood, characterized by falling production levels, soft box office returns, and widespread job cuts. The sale of Paramount earlier this year marked another shift in the legacy studio landscape. The relentless competition from streaming giants like Netflix and YouTube has forced traditional media conglomerates to reevaluate their strategies, often divesting cable assets to focus resources on their own streaming platforms.
