The reaction to Netflix Inc.'s (NASDAQ:NFLX) $82.7 billion plan to acquire Warner Bros. Discovery, Inc. (NASDAQ:WBD) erupted across Washington and Hollywood on Friday, with lawmakers, unions, producers, and industry veterans warning the merger could reshape — and possibly destabilize — the entertainment landscape.
Elizabeth Warren Warns Of Higher Prices And Fewer Choices
Sen. Elizabeth Warren (D-Mass.) denounced the proposed merger, calling it an "anti-monopoly nightmare" in a series of posts on X.
She argued that allowing Netflix to absorb Warner Bros. and HBO would create a streaming giant with control over nearly half of all subscribers, a level of consolidation she said could push prices up, limit what and how people watch, and threaten American jobs.
Warren also criticized what she described as a corrupt antitrust review environment under President Donald Trump, urging the Justice Department to vet the deal "fairly and transparently" without political favoritism.
Concerns Over Corporate Power Dominate Debate
Former Labor Secretary Robert Reich echoed Warren's warnings, saying the merger fits into a long-running pattern of consolidation that leaves consumers with fewer options.
Reich pointed to industries ranging from airlines to meatpacking as examples of how reduced competition means more power for corporations and less freedom for the public.
Rep. Ro Khanna (D-Calif.) urged Vice President JD Vance to join him in opposing the Netflix–Warner Bros. merger, warning it could hurt theaters, undermine artists through AI, limit opportunities for creators, and raise consumer prices.
Right-wing commentator and podcaster Benny Johnson also blasted the deal, framing it as the most dangerous media consolidation in U.S. history.
He accused Netflix of enabling political influence over children's content, citing Barack and Michelle Obama's production deal and former Obama adviser Susan Rice's role on the company's board.
Johnson urged his followers to cancel Netflix subscriptions and pressure federal regulators and Congress to stop the merger.
Hollywood Unions And Rivals Raise Red Flags
In the entertainment industry, reactions were equally intense. SAG-AFTRA said it would conduct a full review, stressing that any merger must protect jobs and support production.
A U.K. film producer told Deadline the deal feels like the end of Hollywood, while another warned of widespread layoffs.
An anonymous letter from Hollywood executives to Congress said that Netflix could wreck movie theaters by shrinking theatrical windows and slashing licensing fees.
Meanwhile, bidder Paramount Skydance (NASDAQ:PSKY) accused Warner Bros. Discovery of running a biased auction and demanded an independent committee to oversee the process, warning that even the appearance of favoritism could jeopardize shareholder value.
Price Action: On Friday, Netflix closed at $100.24, down 2.89% and edged up to $100.60 in after-hours trading, according to Benzinga Pro. Warner Bros. Discovery closed at $26.08, up 6.28% during regular hours and slipped to $25.89 in after-hours trading.
Benzinga’s Edge Stock Rankings indicate that NFLX is trending lower across short, medium, and long-term periods, with more performance details available here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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