Major US labour unions have issued a stark warning, demanding that the proposed multi-billion dollar merger between streaming titan Netflix and entertainment giant Warner Bros Discovery be blocked by regulators.
Unions Sound Alarm Over Job Losses and Wages
The Writers Guild of America West and East (WGA), which represents writers across film, television, and online media, released a forceful joint statement condemning the deal announced on Friday 5 December 2025. They argue the acquisition represents the exact kind of market consolidation that antitrust laws were designed to prevent.
The unions stated the merger would have severe consequences, including the elimination of jobs, a downward pressure on wages, and a worsening of conditions for all entertainment industry workers. They further warned it would lead to higher prices for consumers and a reduction in both the volume and diversity of content available to viewers.
"The world’s largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent," the WGA statement declared. "Industry workers along with the public are already impacted by only a few powerful companies maintaining tight control... This merger must be blocked."
The Details of the Landmark Deal
Netflix confirmed it had agreed to purchase the Warner Bros Discovery film and TV studios business for a staggering $72 billion (£54 billion). The deal will see Netflix pay $27.75 (£20.79) per share to Warner Bros Discovery investors.
The acquisition followed an auction process where Netflix emerged as the front-runner, beating out rivals like Paramount Skydance and Comcast, the owner of Sky. The prize includes control of iconic franchises such as Harry Potter and Batman, the prestigious HBO studio, and the streaming service HBO Max.
However, the transaction is complex and not expected to finalise until at least the third quarter of 2026. It is contingent on Warner Bros Discovery first spinning off its cable channels portfolio, which includes networks like CNN, TBS, and in the UK, TNT Sports. The deal is anticipated to face intense scrutiny from competition regulators in both the United States and Europe.
Industry Reshape and Mixed Reactions
This merger threatens to dramatically reshape the Hollywood landscape, which has already been upended by the rapid ascent of streaming services. Netflix executives, however, have sought to reassure the industry and the public.
Ted Sarandos, co-CEO of Netflix, framed the deal as a boon for storytelling, promising to combine Warner Bros' vast library—from classics like Casablanca to modern hits like Friends—with Netflix's own culture-defining titles such as Stranger Things and Squid Game. The company stated it expects to maintain Warner Bros' current operations and continue releasing films in cinemas.
This commitment was cautiously welcomed by Equity, the UK trade union for performing arts professionals. Cathy Sweet, Equity's Head of TV and Film, emphasised the critical importance of protecting workers' contracted terms and conditions through any ownership change. "We welcome the commitment to maintaining cinema theatre releases and the commitment to invest in original content, which must be a positive step for jobs and pay," she said.
Financial markets reacted cautiously, with Netflix's share price dipping slightly following the announcement. Danni Hewson, Head of Financial Analysis at AJ Bell, noted that while the huge cash outlay didn't delight investors, significant cost savings were likely if the deal clears regulatory hurdles. "How much of those savings get passed to streaming platform subscribers or whether Netflix will be seen to have too much pricing power is one of the areas that will face a huge amount of scrutiny," Hewson added.
David Zaslav, President and CEO of Warner Bros Discovery, portrayed the union as a combination of "two of the greatest storytelling companies in the world." Netflix stated the move would provide a much deeper content library for subscribers and enhance its studio capabilities for long-term original content investment.
