The battle for the future of Hollywood has reached a fever pitch, as Netflix’s high-profile bid to acquire Warner Bros. Discovery (WBD) faces fierce competition, political crossfire, and mounting anxiety across the entertainment industry. The deal, announced on December 5, 2025, would see Netflix absorb Warner Bros.’ legendary film and television studios, HBO Max, and HBO, in a transaction valued at $82.7 billion. But what’s at stake is far more than just dollars and cents: unions, politicians, Wall Street analysts, and industry insiders are all weighing in, and their concerns range from job losses and antitrust nightmares to the very future of filmgoing itself.
After weeks of heated negotiations and unsolicited offers, Warner Bros. agreed last week to sell its studios and streaming business to Netflix for $27.75 a share. The deal would combine Netflix’s 300 million global subscribers with HBO Max’s 128 million, giving the merged company control of roughly 43% of the worldwide subscription video market, according to Barchart. Netflix will pay $23.25 in cash and $4.50 in its own stock for each Warner Bros. Discovery share, and the company has agreed to a $5.8 billion reverse breakup fee if regulators block the deal.
But the story doesn’t end there. Paramount Skydance Corporation, led by CEO David Ellison and backed by Jared Kushner—former President Donald Trump’s son-in-law—launched a hostile $30-a-share all-cash tender offer on December 8, seeking to snatch Warner Bros. from Netflix’s grasp. Paramount’s bid, supported by $24 billion from Middle Eastern sources, has only deepened the controversy. According to Bloomberg, Ellison’s connections to the Trump administration and the involvement of sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi have raised eyebrows among lawmakers and watchdogs alike.
The political overtones are unmistakable. President Trump weighed in on December 10, declaring that any Warner Bros. deal should include the sale of its CNN cable news network, which he called “a very dishonest group of people.” Trump has also voiced antitrust concerns about a Netflix takeover, yet stopped short of endorsing Paramount’s bid. “Neither Netflix nor Paramount are particularly great friends of mine,” he said, while blasting both companies for perceived slights.
Congressional Republicans and Democrats have found rare agreement in their unease. Republican Congressman Darrell Issa wrote to the Attorney General in November, warning that “Netflix is already the dominant streaming platform in the United States and permitting it to absorb a major competitor raises antitrust concerns that could result in a harm to consumers.” On the other side of the aisle, Democratic Representatives Sam Liccardo and Ayanna Pressley expressed alarm over the foreign investors in Paramount’s bid, noting that “these investors, by virtue of their financial position or contractual rights, could obtain influence—direct or indirect—over business decisions that bear upon editorial independence, content moderation, distribution priorities, or the stewardship of Americans’ private data.”
Senator Elizabeth Warren has been one of the most vocal critics, calling Paramount’s offer a “five-alarm antitrust fire” and previously labeling Netflix’s bid as an “anti-monopoly nightmare.” Warren, together with Senators Bernie Sanders and Richard Blumenthal, wrote to the Department of Justice Antitrust Division warning that such deals risk being shaped by “political favoritism and corruption.” She pointedly highlighted the Trump administration’s approval of the Paramount-Skydance merger, which followed a sizable donation to Trump’s presidential library fund.
Meanwhile, right-wing commentators and pro-Trump influencers have sounded the alarm about Netflix’s ties to the Obamas and the potential for a “woke nightmare” in media. Conservative commentator Laura Loomer warned that “if Netflix is allowed to buy Warner Bros. and Trump’s administration doesn’t kill off the merger, CNN will be transformed into the Obama News Network.” Former Representative Matt Gaetz posted, “TRUMP MUST STOP THIS!” and described the potential merger as a threat to the diversity of the media landscape.
For Hollywood’s workforce, the stakes feel existential. The Writers Guild of America West and East issued a joint statement declaring, “The world’s largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent. 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.” SAG-AFTRA, representing 160,000 actors and media professionals, warned that while consolidation may benefit shareholders, it “will no doubt impact on the future of the entertainment industry, and especially the human creative talent whose livelihoods and careers depend on it.”
Directors, too, are wary. The Directors Guild of America announced plans to meet with Netflix to better understand the company’s vision, stating, “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.”
Concerns about job losses are compounded by worries over the future of movie theaters. Michael O’Leary, CEO of Cinema United, said last week that the Netflix deal “poses an unprecedented threat to the global exhibition business,” noting that “Netflix’s stated business model does not support theatrical exhibition. In fact, it is the opposite.” The Independent Cinema Alliance echoed those fears, pointing to Disney’s 2017 acquisition of 20th Century Fox—which led to a 40% drop in theatrical releases—as a cautionary tale. Jane Fonda joined the chorus, calling the Netflix deal “an alarming escalation of the consolidation that threatens the entire entertainment industry, the democratic public it serves and the First Amendment itself.”
Wall Street, meanwhile, is divided. Needham analyst Laura Martin warned that Netflix is putting $83 billion in value at risk by taking on Warner Bros.’ traditional studio business just as generative AI threatens to upend content creation. Netflix stock has fallen nearly 10% in the last five trading sessions, as investors digest the regulatory and competitive implications. Yet, Netflix’s co-CEOs Greg Peters and Ted Sarandos remain bullish, outlining plans to spend $30 billion annually on content and double advertising revenue, while integrating AI to enhance creative storytelling and expanding into gaming.
Analysts forecast Netflix’s revenue will climb from $39 billion in 2024 to $67.2 billion in 2029, with adjusted earnings per share rising from $1.98 to $5.10, according to Barchart. Out of 47 analysts, 27 recommend “Strong Buy,” and the average price target sits well above current levels.
Still, the path ahead is anything but certain. Regulatory scrutiny—both in the U.S. and Europe—looms large, and the bitter rivalry between Netflix and Paramount Skydance shows no sign of abating. As Teamsters Local 399 Secretary-Treasurer Lindsay Dougherty put it, “Netflix is the biggest streaming service in the world. Consolidating its power over the streaming video market not only kills jobs but also raises prices and hurts the U.S. entertainment industry. Teamsters have been clear on our position that greed-fueled consolidation of corporate power, no matter what industry, is a direct threat to good union jobs, the livelihood of our members, and the very existence of our industry.”
With the future of Warner Bros.—and perhaps all of Hollywood—hanging in the balance, the coming weeks promise more drama than any blockbuster. The outcome will shape not just the business of entertainment, but the stories, jobs, and voices that define American culture for years to come.
