Netflix’s announcement of its $83 billion acquisition of Warner Bros. and HBO Max has ignited widespread anger in Hollywood. Among the most vocal critics is Jane Fonda, who blasted the deal in a letter to an industry trade outlet, warning that the loss of an independent Warner Bros. marks a dangerous step in a growing wave of consolidation, one she says threatens the entertainment business, the audiences it serves, and even the First Amendment.
For years, Hollywood’s legacy studios dismissed Netflix as an upstart, a DVD-mailer turned streamer that overspent to chase subscribers. Executives laughed off predictions that it could ever stand alongside the major studios.
This week, however, the unimaginable happened. Netflix secured an $83 billion deal to acquire Warner Bros. and its parent assets, shattering a century of studio hierarchy. The stunning win follows a rapid six-week bidding war that saw Netflix outmaneuver some of the industry’s biggest players from David Ellison’s Paramount-backed offer to Saudi investors and Comcast’s considerable resources, according to the Financial Times.
The merger will allow the streaming giant to expand its collection with shows and movies like Game of Thrones, DC Universe titles, Dune, and Harry Potter. In reaction, top figures in Hollywood have initiated a strong campaign opposing the acquisition, with prominent director James Cameron labeling the buyout as a 'disaster'.
On Friday, Netflix affirmed its commitment to the Warner Bros. business model, stating it would persist in releasing films in theaters for exclusive showings."It's not like we have this opposition to movies into theaters," Ted Sarandos, Netflix's co-CEO, said on a conference call with investors.
Michael O’Leary of Cinema United warned that Netflix’s takeover is “an unprecedented threat,” saying, “Theaters will close, communities will suffer, jobs will be lost,” due to the company’s “token” theatrical releases. Theater-chain stocks fell up to 8%.
The Writers Guild declared, “This merger must be blocked,” arguing that “the world’s largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent.” The Teamsters also urged governments at “all levels” to reject the deal.
Hollywood workers, from camera crews to writers are already struggling after years of layoffs fueled by the pandemic, strikes, cheaper production hubs, and emerging AI tools. So when Netflix’s takeover of Warner Bros. was announced, many in Los Angeles saw it as yet another consolidation that would mean more job losses, much like Disney’s 2019 Fox acquisition and the recent Skydance–Paramount merger.
Local lawmakers and city leaders expressed concern about what the deal could mean for production jobs in LA, even as some acknowledged Netflix’s strong presence in the city.
Privately, officials also worried about federal approval of the merger and potential political influence. In the entertainment community, anxiety centered on shrinking opportunities for independent filmmakers and fears that fewer buyers will lead to safer, less creative content. Industry voices, including the Writers Guild of America West, called the merger harmful, warning it will reduce competition, lower pay, and cost Hollywood even more jobs.
