Netflix–Warner Bros Deal Sparks Antitrust and Industry Fallout

The Netflix and Warner Bros. Discovery (WBD) deal triggered immediate condemnation from politicians across parties and Hollywood labor unions. Democrats, including U.S. Senator Elizabeth Warren, and Republicans alike warned that combining the streaming giant with one of Hollywood’s oldest studios would concentrate power, jeopardize jobs, and shrink creative and consumer choice.

On Dec 5, 2025, Netflix and Warner Bros. Discovery announced that Netflix would acquire Warner’s film and television studios, HBO/HBO Max, and the company’s vast content library, in a deal valuing WBD’s entertainment business at $72 billion USD equity (~$82.7B including debt). 

Major entertainment guilds, including the Writers Guild of America (WGA), Screen Actors Guild, American Federation of Television and Radio Artists (SAG-AFTRA), and the Directors Guild of America (DGA), joined the chorus of concern. They also argued the merger could lead to fewer theatrical releases, job losses, a slump in wages, and fewer creative opportunities. They demanded a rigorous antitrust review or the possible blocking of the merger. 

However, Netflix argued that the deal will generate value for viewers, workers, and shareholders, offering more content, scaling production efficiencies, and sustaining jobs. On the other hand, Paramount-Skydance CEO, David Ellison, is planning to lead a hostile bid offer of WBD amidst the heated regulatory landscape surrounding the deal.

Netflix–Warner Bros Deal: Political and Union Pushback

In Congress, members from both major parties voiced concern. Republican figures warned the deal would reduce competition and grant Netflix control over film and TV content due to acquiring HBO Max and Warner Bros.' content rights. Senator Elizabeth Warren, joined by U.S. Representative Pramila Jayapal, condemned the merger as an antitrust “nightmare.”

Warren further emphasized that if Netflix acquires WBD, it would “create one massive media giant with control of close to half of the streaming market,” which might lead to higher subscription prices and dictate how audiences consume any content. Previously, when Netflix increased its ad-free tier subscription fee, HBO Max followed suit, which will likely happen if the acquisition of such scale goes through. 

Republicans such as Mike Lee, representing the antitrust committee, Senator Roger Marshall, and Representative Darrell Issa called for antitrust scrutiny. Lee wrote in an X post, “Netflix’s dominance… would mean the end of the Golden Age of streaming for content creators and consumers.” U.S. President Donald Trump ultimately decided not to take a side in the Netflix-WBD deal.

The unions’ concerns overlap with broader fears about creative consolidation. They pointed out that fewer studios would control more content, drying up the independent and mid-budget films market, while diminishing diversity in storytelling. WGA noted that the deal would mean the largest streaming company swallowing up one of its biggest rivals. They noted in a statement, “this merger must be blocked.”

Wider Stakes of the Deal

If approved, the acquisition would give Netflix control over one of the most valuable film and television libraries in Hollywood, including IPs like Harry Potter, DC Universe, Casablanca, and the like. This integration would position Netflix as a dominant force across production, distribution, and content libraries, reshaping the global entertainment landscape.

Cinema United warned that consolidation may decimate theatrical box-office returns, projecting potential losses of up to 25% of domestic box office revenue if major releases shift directly to streaming instead of cinemas. 

While it changes the box office scenario, it provides Netflix with more ways to increase its revenue. One estimate suggests that the deal’s impact could extend to Asia-Pacific markets, with up to $6.6B regional revenue implications

Amidst the concerns, Paramount Skydance launched a hostile bid for WBD with $108.4B, backed by Saudi Arabia’s Public Investment Fund (PIF). David Ellison’s company is appealing directly to shareholders, bypassing WBD’s board for the offer. While dealing with the regulatory pressure, WBD has confirmed it is reviewing the competing Paramount Skydance offer, while also preparing for the potential challenge of the Netflix deal.