WGA opposes Netflix's Warner Bros. acquisition, cites 'antitrust laws'
What's the story
The Writers Guild of America (WGA) has publicly opposed Netflix's acquisition of Warner Bros. Discovery (WBD), citing concerns that the merger could violate antitrust laws. In a joint statement, the WGA East and West branches argued, "The world's largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent." "The outcome would eliminate jobs, push down wages, worsen conditions for all entertainment workers...and reduce the volume and diversity of content for all viewers."
Other unions' stance
'We will be meeting with Netflix to outline our concerns...'
Other unions have also expressed their concerns about the potential merger. The Teamsters union (labor union) has stated that the "greed-fueled consolidation of corporate power" poses a threat to union jobs. Meanwhile, the Directors Guild of America (DGA) is awaiting more information before forming an opinion on the deal. A DGA spokesperson told Deadline, "We will be meeting with Netflix to outline our concerns and better understand their vision for the future of the company."
Other guilds' reactions
SAG-AFTRA and Producers Guild of America express concerns
The Producers Guild of America has also expressed concern about the acquisition, stating it was "rightfully concerned." They emphasized the need to protect "producers' livelihoods and real theatrical distribution" amid economic and technological changes. The Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) stated that the deal must result in "more creation and production," not less, while respecting the talent involved.
About
Know more about the acquisition
Netflix and WBD finalized a deal of approximately $82.7 billion (equity value of $72.0 billion) on Friday. As per Netflix's statement, the deal is expected to close after WBD separates its Global Networks division, Discovery Global, into a new publicly traded company early next year. Ted Sarandos, co-CEO of Netflix, said, "Our mission has always been to entertain the world." "By combining Warner Bros.' incredible library of shows and movies...with our culture-defining titles...we'll be able to do that even better."
Acquisition challenges
Regulatory hurdles and political skepticism complicate acquisition
The proposed acquisition is also facing regulatory hurdles in the US and Europe. The current administration views the deal with "heavy skepticism," reported AV Club. Senator Elizabeth Warren has been particularly vocal, saying, "This deal looks like an anti-monopoly nightmare." She added that a Netflix-Warner Bros. merger could form a media giant dominating nearly half the streaming market, resulting in higher subscription fees and fewer options for consumers.