The fight over Warner Bros. Discovery Inc. Has ignited a significant reaction in Hollywood, as labor organizations lament the possible reduction in employment, movie houses express concern regarding the trajectory of film premieres, and performers voice apprehension about freedom of expression.
TL;DR
- Hollywood labor groups and movie houses worry about job losses and film premiere changes.
- Political divisions emerge, with Republicans opposing Netflix and Democrats questioning Middle Eastern funding for Paramount.
- President Trump demands CNN's divestiture in any Warner Bros. deal, citing dishonesty.
- Netflix and Paramount's bids face antitrust concerns and industry-wide consolidation worries.
The discussion concerning which entity will ultimately acquire Warner Bros. — Netflix Inc. Or Paramount Skydance Corp. — is dividing the nation based on political affiliations.
Within Republican circles, opposing Netflix has gained popularity. Paramount is managed by David Ellison, who maintains strong connections with The White House, and his attempt to acquire Warner Bros. Receives support from Jared Kushner, President Donald Trump's son-in-law. Conversely, certain notable Democrats are expressing disapproval of the Paramount offer, protesting the $24 billion originating from Middle Eastern entities.
President Trump injected further tension on Wednesday by asserting that any agreement concerning Warner Bros. Must incorporate the divestiture of its CNN cable news channel.
“It should be guaranteed that CNN is part of it or sold separately,” he said. The network is run by “a very dishonest group of people.”
Warner Bros. And Paramount declined to comment. Netflix didn’t respond to requests for comment.
Few recent consolidations have sparked as much division as the pursuit of Warner Bros., a deal that unites the allure of Hollywood, the sway of television journalism, international intrigue involving Middle Eastern capital, and the shadow of preferential treatment from The White House.
Trump's remark generated further doubt. He had previously raised antitrust worries regarding Netflix acquiring Warner Bros.
Following a protracted bidding process lasting several months, Warner Bros. Reached an agreement last week to divest its film production facilities and streaming operations, which encompass HBO, to Netflix at a price of $27.75 per share. As part of the arrangement with Netflix, Warner Bros. Intends to proceed with its strategy of separating its cable television channels, such as CNN and TNT, into an independent entity to be known as Discovery Global.
Paramount, having initiated the acquisition process with multiple unsolicited proposals for the firm, countered on December 8th by initiating a $30 per share aggressive tender bid for the entirety of Warner Bros., encompassing its cable channels.
Paramount sent a communiqué to its investors on Wednesday, restating that its proposal is superior and more probable to gain endorsement in Washington.
Ellison has openly discussed maintaining a positive connection with The Trump administration. His father, Larry Ellison, who is the cofounder of Oracle Corp. And ranks as the world's second-wealthiest individual, is a supporter of Trump.
Still, Trump hasn’t fully endorsed Paramount’s bid. He bashed the company on Monday over a 60 Minutes interview with Republican Congresswoman Marjorie Taylor Greene, who has become a vocal critic of the president. He also said that neither Netflix nor Paramount “are particularly great friends of mine.”
Other politicians have been much clearer about who they’re rooting against in the bidding war.
In November, California Republican Representative Darrell Issa penned a letter to Attorney General Pam Bondi, inquiring if a potential agreement between Netflix and Warner Bros. Might grant the streaming giant excessive market influence.
“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,” Issa wrote.
On Wednesday, Democratic Representatives Sam Liccardo from California and Ayanna Pressley of Massachusetts dispatched a letter to Warner Bros. CEO David Zaslav, expressing worries regarding the involvement of international financiers in Paramount’s offer, which is supported by state-owned investment funds from Saudi Arabia, Qatar, and Abu Dhabi.
“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,” the lawmakers wrote.
Similar to many in the entertainment industry, Massachusetts' Democratic Senator Elizabeth Warren would ideally see no transaction occur. On Monday, she characterized Paramount's proposal as a “five-alarm antitrust fire”, having earlier labeled Netflix's attempt as a “anti-monopoly nightmare.”.
In the pro-Trump MAGA-verse, prominent figures and media analysts urged Trump to prevent a Netflix-Warner Bros. Agreement. Conservative commentator Laura Loomer specifically highlighted Netflix's connections to former President Barack Obama and his spouse Michelle, who entered into an arrangement with the company in 2018.
“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, featuring shows hosted by Michelle Obama @MichelleObama where she lectures Americans about how racist and sexist we are,” Loomer wrote on X.
Conservative media personality Benny Johnson suggested that merging Netflix with the streaming and studio divisions of Warner Bros. Would be “the most dangerous media consolidation in American history” and result in “a monopoly on children’s entertainment” for “the Democrat super-donors that run Netflix.”
Matt Gaetz, a former US Representative who Trump had previously nominated for attorney general before withdrawing his name, wrote “TRUMP MUST STOP THIS!” On X shortly after the Netflix agreement was revealed.
“The most massive content distributor lashing to a massive content producer / catalog will create a homogenized, woke nightmare for the media landscape,” he wrote.
Hollywood's primary concern has revolved around the potential consequences of each agreement on an industry already grappling with workforce reductions, scaled-back productions, and the looming specter of artificial intelligence.
With Netflix co-CEO Ted Sarandos previously deeming the experience of going to a movie theater to be “outdated,” some in the industry are concerned his company’s takeover of Warner Bros.’s streaming business would spell disaster for theater chains and film production.
Last week, Michael O’Leary, the chief executive of Cinema United, a trade organization for movie theaters, stated in a release that the agreement with Netflix “poses an unprecedented threat to the global exhibition business.”
“Netflix’s stated business model does not support theatrical exhibition,” he wrote. “In fact, it is the opposite.”
The Producer’s Guild of America urged protection for producers’ livelihoods and theatrical distribution.
“Our legacy studios are more than content libraries – within their vaults are the character and culture of our nation,” the guild said.
Last week, actress Jane Fonda voiced her opposition to the Netflix agreement, labeling it “an alarming escalation of the consolidation that threatens the entire entertainment industry, the democratic public it serves and the First Amendment itself.”
Other creative professionals offered thoughts on how the merger could impact audiences. In a skit on Morning Brew’s YouTube Channel Good Work, a person begins watching a movie online at their residence, only to be overwhelmed by numerous studio emblems such as Netflix, Warner Bros., Paramount, HBO, Pixar, and the Saudi Arabia Public Investment Fund. The viewer soon loses interest before reaching for the controller.
“Let’s turn this off,” he says.
