How would the deal between Netflix and Warner Bros. Reshaping Hollywood? | TechCrunch

It was just a day ago that Netflix announced an $82.7 billion deal to acquire Warner Bros. to take over, and it is already described that the takeover will bring Hollywood to “full panic mode,” “possibly a death knell for theatrical filmmaking”, and maybe even “the end of Hollywood” yourself.

Some of the fiercest opposition came from the Writers Guild of America, which issued a statement and stated: “This merger must be blocked.”

“The world’s largest streaming company gobbling up one of its biggest competitors is what antitrust laws were designed to prevent,” the WGA said. “The outcome would eliminate jobs, depress wages, worsen conditions for all entertainment workers, increase prices for consumers, and reduce the volume and diversity of content for all viewers.”

While other Hollywood unions’ statements were not as clear-cut, they still suggested that there are “many serious questions” about the acquisition’s “impact on the future of the entertainment industry” (such as said the actors’ union SAG-AFTRA).

The deal was reached after a competitive process in which Paramount and Comcast also submitted bids. Paramount tried to take over the entire company, while Netflix will only take over the film and television studios and the streaming business, after Warner Bros. has made progress on a plan to spin off its TV networks division.

Initial, Paramount was seen as the frontrunnerwith ties to the Trump administration (the studio is now run by David Ellison, son of Oracle co-founder and Trump ally Larry Ellison) paving the way for regulatory approval. But even before the Netflix deal was announced, Paramount’s lawyers sent an angry letter complaining about “a tilted and unfair process,” and Netflix soon publicly emerged as the winner.

This deal, which is expected to close in the third quarter of 2026, is likely to come under pressure significant regulatory oversightand not just from Trump appointees. Senator Elizabeth Warren – a Democrat from Massachusetts and longtime critic of Big Tech — made a statement himself He describes the deal as “an anti-monopoly nightmare.”

“A Netflix Warner Bros. [merger] would create one massive media giant that controls nearly half the streaming market — threatening to force Americans into higher subscription prices and fewer choices about what and how they watch, while putting American workers at risk,” Warren said.

She also argued that antitrust enforcement – ​​including the review process for this deal – should be conducted “fairly and transparently” rather than being used to “invite influence peddling and bribery.”

If the government ultimately blocks the takeover, Netflix would have to pay a $5.8 billion termination fee. It is not clear whether Warner Bros. would continue to operate as an independent company or reconsider previous takeover offers.

Netflix an analyst interview to discuss the deal Friday morning, and while many of the questions focused on the financial implications for both companies, executives also sought to address larger concerns.

Co-CEO Ted Sarandos, for example, said he has “a lot of confidence in the regulatory process.”

“This deal is pro-consumer, pro-innovation, pro-worker, pro-creator, pro-growth,” he added. “And our plans here are to work very closely with all relevant governments and regulators, but really confident that we will get all the necessary approvals that we need.”

Sarandos also said that Netflix plans to keep HBO “operating largely as is.” And while Netflix hasn’t done this in the past, Warner Bros. will also continue to produce TV shows for other networks and streaming services, he said: “We want to keep that successful business going.”

As for how HBO and HBO Max would be packaged into the Netflix app, co-CEO Greg Peters said it was too early to go into specifics, but he said: “Needless to say, we think the HBO brand is very powerful for consumers. We think the offering can and could be part of our plans and how we structure them for consumers.”

Beyond the general concerns surrounding consolidation, perhaps the biggest question is to what extent Netflix will support theatrical releases for the combined entity’s films – especially after Warner Bros. had a record number of box office successes this year, while Netflix’s theatrical releases last only a few weeks and major cinema chains are skipped due to the limited exclusive period. (This was reportedly the deciding factor when “Stranger Things” creators the Duffer Brothers signed an exclusive deal with Paramount.)

For his part, Sarandos said he “wouldn’t see this as a change in approach for Netflix films or for Warner films,” noting that Netflix has released 30 films in theaters this year (albeit, mostly on fewer screens and for a limited period).

Likewise, “anything scheduled to go to theaters through Warner Bros. will continue to go to theaters through Warner Bros.,” he said. But in the long term, he suggested that “windows will evolve” to allow movies to be streamed more quickly.

“My disappointment is mainly the fact that there are long exclusive windows, which we don’t really consider consumer-friendly,” he said.