The real-life proposed merger between Netflix and Warner Bros. is already inspiring some very big conversations. Industry leaders and lawmakers are still considering its potential impact. At this week’s Davos in the Desert, Netflix co-CEO Ted Sarandos voiced confidence that they would be able to navigate these regulatory waters. He expects the merger to close in the third quarter of 2026. Senator Elizabeth Warren, the Democrat from Massachusetts, has been a longtime critic of Big Tech. She told the NYT that she is strongly opposed to the merger, warning it will be “an anti-monopoly nightmare.”
The streaming world’s largest service is about to swallow one of its biggest rival competitors whole. This unprecedented deal has raised so many questions about what it can mean for the entertainment industry. To all of his points, Sarandos reiterated that Netflix doesn’t plan to make any drastic changes to HBO’s inner workings. He stated, “everything that is planned on going to the theater through Warner Bros. will continue to go to the theaters through Warner Bros.” This assurance is intended to calm anxiety among both consumers and the industry over the direction of content distribution.
The Writers Guild of America (WGA) has been the loudest in expressing its opposition. In a joint statement, the WGA spelled out their reasons, saying that “this merger should be stopped.” They highlighted the antitrust implications, arguing that “the world’s largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent.” By drawing attention to the merger, the union did the first thing needed to stop the merger. They predicted it would lead to layoffs, reductions in worker pay, and more homogenized programming.
With this response, Ted Sarandos preempted these criticisms by focusing on how the deal is a win for consumers now and creators later. As he explained, “This deal is pro-consumer, it’s pro-innovation, it’s pro-worker, it’s pro-creator, it’s pro-growth.” He pointed out that their plan wouldn’t make all that much difference to Netflix’s plans for theatrical release. “We wouldn’t look at this as a change in approach for Netflix movies or for Warner movies for that matter,” he added.
The deal’s forthcoming scrutiny arrives at a time when the entertainment landscape is changing more quickly than ever. Netflix has committed to ensuring HBO stays out of bankruptcy. Despite this, SAG-AFTRA has raised important concerns about how this merger might impact workers in the entertainment industry. The union demands to know how this merger might impact job security and working conditions throughout the industry.
The Duffer Brothers, creators of the popular series “Stranger Things,” have made headlines recently by signing an exclusive deal with Paramount. This decision further signals the cutthroat race between streamers and traditional studios to lure the best creative minds.
Elizabeth Warren’s statement on the proposed merger reflects a broader apprehension among lawmakers regarding the concentration of power within the tech industry. She cautioned that monopolistic practices could suppress innovation and hurt consumers, encouraging regulators to pay careful attention to the deal.
Under the current scenario, this deal could close by 2026. It’ll be the ideal follow up to TechCrunch Disrupt 2026, running October 13-15 in San Francisco. This event will ramp up invigorating conversations around tech innovation and change in the industry. It will itself improve the negotiations to come, making them more fun and productive.
“The outcome would eliminate jobs, push down wages, worsen conditions for all entertainment workers, raise prices for consumers, and reduce the volume and diversity of content for all viewers.” And a lot of people out there are thinking this. They worried that a massive merger may upend the very basis of their creative industries.
