Netflix’s proposed $82.7 billion acquisition of Warner Bros. Discovery (WBD) has ignited intense debate across Hollywood, triggering concerns over job security, market dominance, and the future of theatrical film releases. As industry opposition grows, Netflix co-CEOs Greg Peters and Ted Sarandos have moved to calm fears, issuing a detailed letter to employees that was later made public by Bloomberg.
In their message, Peters and Sarandos emphasized that the deal is designed to fuel long-term growth rather than dismantle existing studio operations. They pledged that Warner Bros. Discovery’s theatrical film releases would continue and firmly denied rumors of studio closures or significant operational overlap. According to the executives, the acquisition would “strengthen one of Hollywood’s most iconic studios,” preserve jobs, and support sustainable film and television production.
Despite these assurances, resistance from labor groups has been swift. The Writers Guild of America (WGA) has positioned itself as a leading critic of the merger, arguing that it violates antitrust laws meant to prevent excessive consolidation in the entertainment industry. The union fears the deal could further weaken creative bargaining power and reduce opportunities for writers and diverse storytellers.
Political scrutiny has also intensified. Senators Elizabeth Warren, Bernie Sanders, and Richard Blumenthal formally urged the Justice Department’s Antitrust Division to investigate the proposed merger. In their letter, the lawmakers warned that a combined Netflix-WBD entity could wield unprecedented market power, potentially driving up subscription costs for consumers already struggling with inflation. Their concerns carry particular weight given Netflix’s recent price increase earlier this year.
Netflix has attempted to counter monopoly allegations by citing Nielsen data. According to the company, a merged Netflix-WBD would command a smaller share of total viewership than YouTube currently holds, or even what would emerge from a hypothetical Paramount-WBD merger. The executives argue this context proves the deal would not stifle competition but instead create a stronger rival within a highly fragmented media landscape.
Adding another layer of complexity, Paramount recently submitted a competing $108.4 billion bid for Warner Bros. Discovery. While the offer underscored the strategic value of WBD’s assets, reports indicate the board rejected Paramount’s proposal, keeping Netflix firmly in the spotlight.
As regulators, unions, and lawmakers weigh in, Netflix’s bid for Warner Bros. Discovery is shaping up to be one of the most consequential media mergers in modern Hollywood history one that could redefine how films, television, and streaming coexist in the years ahead.
