Netflix's Warner Bros. Acquisition Sparks Fierce Backlash From Hollywood and Washington

Industry Uproar After Netflix Emerges As Likely Buyer Of Warner Bros.

Netflix drew intense criticism after emerging as the likely buyer of Warner Bros., the storied studio behind classics such as Casablanca, the Harry Potter franchise and the sitcom Friends. Industry figures and lawmakers warned that the deal could accelerate the decline of theatrical exhibition and concentrate too much power in the hands of a single streaming giant.

Filmmakers and producers reacted swiftly. Director James Cameron called the acquisition a 'disaster,' while a coalition of prominent producers — speaking anonymously in a letter to lawmakers cited by Variety — warned Netflix could 'effectively hold a noose around the theatrical marketplace,' deepening harm already caused by audiences shifting to streaming.

'I could not think of a more effective way to reduce competition in Hollywood than selling WBD to Netflix,' wrote former Warner CEO Jason Kilar on X.

At the center of the controversy is Netflix co-CEO Ted Sarandos, who has frequently suggested that the era of mass theatrical attendance is waning. During an analyst call, Sarandos expressed surprise at how the sale unfolded but pledged that Netflix would preserve Warner Bros.' theatrical releases and retain the HBO Max brand.

Those assurances did little to calm exhibitors and many industry veterans who view theatrical windows as essential to film prestige and the cultural experience of cinema. Variety ran a front-page question: 'Is Netflix Trying to Buy Warner Bros. or Kill It?' Michael O'Leary, CEO of Cinema United — the world's largest exhibitors' trade group — warned that Netflix's strength 'is television, not movies on the big screen,' and cautioned that theater closures, local economic harm and job losses could follow.

The backlash extended beyond Hollywood. Netflix shares fell more than 3 percent after the announcement, and tech outlet The Information labeled the move an '$82.7 billion blunder' by a management team that rarely errs. Antitrust concerns quickly surfaced: critics argue the deal would give Netflix an even larger share of the entertainment market it already dominates.

Reaction in Washington was bipartisan. Senator Elizabeth Warren said the acquisition 'could force you into higher prices, fewer choices over what and how you watch, and may put American workers at risk.' Republican Senator Mike Lee said the purchase should 'send alarms to antitrust enforcers around the world.'

Rival studios also mobilized. Paramount Skydance — owned by Larry Ellison and run by his son David Ellison — stands to lose competitively and may press the White House to intervene. Paramount had previously pursued a broader bid that would have included cable assets; in the current process those properties are being treated separately, and Paramount has alleged the sale process favored Netflix.

What comes next: The proposed transaction faces regulatory scrutiny and sustained industry pushback. Whether Netflix can reassure exhibitors, regulators and competitors — while integrating a major studio with deep theatrical roots — remains uncertain and will shape the future balance between streaming and cinema.