Netflix's takeover of Warner Bros Discovery causes concern in Hollywood, spreads panic across the industry

If the deal receives final approval, Netflix will take control of Warner Bros.’ most powerful assets—the studio’s film and television divisions, including HBO and HBO Max.

Netflix’s recent acquisition of Warner Bros Discovery has sent shockwaves through Hollywood, sparking a wave of mixed reactions—and, for many, deep concern. The landmark deal, officially announced on Friday morning, confirmed that Netflix has reached a definitive agreement to purchase Warner Bros. for a staggering $82.7 billion.

If the deal receives final approval, Netflix will take control of Warner Bros.’ most powerful assets—the studio’s film and television divisions, including HBO and HBO Max. However, the acquisition does not cover Warner Bros. Discovery’s global networks division, which will be spun off into a separate publicly traded company named Discovery Global, housing brands such as CNN and TNT Sports.

The backlash across the entertainment industry has been swift and intense. A coalition of anonymous A-list producers issued a strong statement condemning the merger, warning that it would “effectively hold a noose around the theatrical marketplace.”

One of the biggest fears lingering across Hollywood is how Netflix might handle the theatrical rollout of Warner Bros. films. While Netflix insisted in its statement that it “expects to maintain Warner Bros.’ current operations and build on its strengths, including theatrical releases for films,” insiders remain wary.

Major unions—including the Directors Guild of America, Producers Guild, and Writers Guild of America—have all expressed alarm. In a forceful statement, the WGA warned, “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.”

Speaking to Vanity Fair, an award-winning film and television writer put it bluntly: “It’s not just one less buyer. It’s the triumph of the Netflix business model, which is to be the only player in the business—building on years and years of successful work by the creatives they’re now going to fuck over.”

Netflix co-CEO Ted Sarandos defended the company’s track record, arguing that Netflix does release films theatrically—though he did not specify the length of those runs. “We’ve released about 30 films into theaters this year, so it’s not like we have this opposition to movies in theaters,” he said. “My pushback has been mostly in the fact of the long, exclusive windows, which we don’t really think are that consumer friendly.”

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Historically, Netflix originals—including recent awards hopefuls Frankenstein and Jay Kelly—receive limited theatrical runs, often just two weeks, before heading to streaming. Warner Bros., by contrast, typically keeps its films in theaters for 30 to 45 days. Sarandos has repeatedly criticized these long exclusivity windows.

The acquisition announcement followed an intense bidding war that unfolded over several weeks, pitting Netflix against powerful competitors such as David Ellison’s Paramount Skydance and Comcast.