A Very Big Deal

In Netflix’s plan to acquire Warner Bros. Discovery, CNN is left out—to the reported relief of its staffers.

On Friday, Netflix announced that it planned to acquire Warner Bros. Discovery for nearly eighty-three billion dollars. For many, the deal represents the dominance of a streaming-service tech company over a century-old Hollywood studio. If the merger is approved by regulators, Netflix will absorb popular franchises including Batman and Harry Potter; classic movies including The Wizard of Oz and Casablanca; and HBO’s prestige programs, like Succession and The White Lotus. Warner Bros. will spin off CNN and other cable networks into a separate company. “In a world where people have so many choices, more choices than ever how to spend their time,” Ted Sarandos, co–chief executive of Netflix, said, “we can’t stand still.”

In response to news of the deal, a group identifying itself as a collection of “concerned feature film producers” sent an open letter to members of Congress expressing worry that a Netflix takeover of Warner Bros. Discovery would “destroy” theatrical releases for films, and that the economic and creative future of the industry was at stake. The letter called for regulators to give the deal “the highest level of antitrust scrutiny.” Chris Murphy, a senator from Connecticut, wrote on X that “this deal is a classic antitrust violation” with serious implications for the movie industry. Even so, he noted, “there are some quietly rooting for it because a Paramount takeover (that includes CNN) would be worse.”