Disaster, catastrophe, and nightmare are the terms used by Hollywood’s creative workforce to describe the potential downfall of Warner Bros., as Netflix and Paramount reportedly vie for the historic studio. The entertainment industry braces for significant upheaval and potential job losses.
The decline and possible sale of Warner Bros. – whether to Paramount Skydance in its entirety or fragmented to Netflix – is generating widespread concern in Hollywood, where a protracted production slump has already significantly impacted the industry. The potential loss of this iconic studio, renowned for producing films like Casablanca, Goodfellas, Batman, and Harry Potter, could lead to further job cuts and reduce the number of buyers for film and television projects.
Interviews conducted by the BBC with numerous actors, producers, and camera crews reveal an industry grappling with difficult choices, weighing the implications of potential acquisition by either a tech giant (Netflix) accused of undermining movie theaters or billionaires (Paramount) perceived as closely aligned with former President Trump.
“David Ellison is a right-wing billionaire Trumper,” stated a camera assistant, referring to the Paramount Skydance CEO and son of Oracle co-founder Larry Ellison, a prominent Trump supporter. “Netflix, historically, has been more inclined to avoid micromanaging production.”
If Netflix’s bid is successful, the company would acquire Warner Bros.’ core assets – the 102-year-old studio, HBO, and its vast library of films and television series – potentially leaving Warner’s legacy TV networks, such as CNN, TNT Sports, and Discovery, to be sold separately.
Meanwhile, Paramount Skydance’s $108 billion hostile takeover bid for Warner Bros. includes financial backing from Saudi Arabia, Abu Dhabi, Qatar, and a fund established by Jared Kushner, former President Trump’s son-in-law.
This has raised concerns about potential censorship and government influence.
Adding to the uncertainty, former President Trump has publicly stated that “it’s imperative that CNN be sold.”
The Warner Bros. deal is the latest in a series of significant changes within Hollywood since the start of the pandemic.
Film and television production came to a standstill in 2023 during simultaneous actor and writer strikes. While 2022 saw a surge in activity as studios and streaming services ramped up production following Covid-related shutdowns, the industry has not rebounded to pre-strike levels.
As a result, many media companies have been forced to close or merge. David Ellison’s Skydance Media acquired Paramount earlier this summer, leading to thousands of job losses.
When Warner Bros. was put up for sale, Paramount initiated an aggressive campaign to acquire the company. However, Warner Bros. ultimately announced a deal with Netflix. Paramount then launched a hostile takeover bid directly to Warner Bros. Discovery shareholders, claiming its offer is “superior” to the Netflix proposal.
Regardless of whether individuals in Hollywood support Paramount, Netflix, or another potential buyer, there is a shared sentiment regarding the perceived antagonist in this situation: Warner Bros. Discovery CEO David Zaslav, who reportedly earned $51.9 million last year while Warner Bros. experienced losses exceeding $11 billion and a nearly 7% decline in stock value.
“I watched Warner Bros. struggle since David Zaslav became the CEO and ran it into the ground,” said an actor who lost his home due to a decline in work opportunities. He requested anonymity due to concerns about future employment prospects with Netflix and Paramount.
Several individuals have drawn comparisons between Mr. Zaslav and the fictional character Gordon Gekko from the 1987 film Wall Street, known for his mantra “greed is good.”
Mr. Zaslav assumed leadership in 2022 during the merger of Discovery, Inc., which he previously led, with AT&T’s WarnerMedia, resulting in the creation of Warner Bros. Discovery. The consolidation led to thousands of job cuts, juxtaposed with substantial compensation packages for Mr. Zaslav.
“Zaslav is just Gordon Gekko – he came in, broke it, and sold it all,” stated a producer who was working on the Warner Bros. lot. “He said I will make all shareholders rich, and who cares what the history of this place is.”
Warner Bros. has contested this characterization.
“Under the leadership of David and the talented team at WBD over the past three and a half years, the studio has regained its leadership position with a unique slate of films led by original content, seen the relaunch of the DC Universe under a single unified leadership team with ten year plan and the streaming service has launched globally and become profitable for the first time ever,” Warner’s head of communications Robert Gibbs said in a statement to the BBC.
For many film workers, the identity of the eventual buyer of Warner Bros. is secondary to the broader challenges facing the industry. Instead, they are focused on adapting to an environment characterized by consolidation and the increasing integration of AI in entertainment.
“Every morning, no matter how much I tell myself to stay positive, I wake up feeling like I’ve failed in every direction,” said an actor who, along with his wife and two children, is now homeless, relying on the support of friends and food banks while working temporary jobs. He requested anonymity to protect future employment opportunities.
“I would rather see Netflix purchase Warner Bros. than foreign money,” he stated.
Others are less certain. The tech giant has arguably been the industry’s biggest disruptor since Warner Bros. pioneered “the talkies” in 1927.
“I think it’s a disaster,” said a film exhibitor who wished to remain anonymous due to their professional relationship with Netflix. “This is a company openly, proudly saying theaters aren’t necessary anymore. That’s scary. It’s a nightmare.”
Many theaters in the US decline to screen Netflix movies because of their streaming-first strategy.
“At least with Paramount, we know movies will make it to the big screen. They didn’t kill movie theaters,” said one producer who has worked for all three companies.
Netflix has sought to alleviate these concerns, stating that they expect “to maintain Warner Bros.’ current operations and build on its strengths, including theatrical releases for films.”
Many in Hollywood are hoping that is the case.
John Evans, a sound technician who also works as an actor, writer, and producer, cites Netflix’s restoration of The Egyptian Theatre on Hollywood Boulevard as a sign of their good intentions.
The Egyptian, a classic 1922 theater and the site of the world’s first movie premiere – Robin Hood starring Douglas Fairbanks – had fallen into disrepair before Netflix acquired the property in 2020 and invested $70 million in its restoration.
“I think it’s a good sign,” Mr. Evans said, adding that streaming is how many film workers consume movies and TV, like the rest of the world.
On the Warner Bros. backlot, tourists take photos in front of the Central Perk cafe set from Friends and stroll past facades of buildings that stand in for New York or Los Angeles. Inside the offices and writers’ rooms, for those still employed, it’s business as usual.
“I’ve gone through seven mergers,” said a producer working on the Warner Bros. lot while developing a new show, explaining that it’s unfortunate to lose a studio because it means it will be even harder to get shows made and sold with one less customer. “But if you make good stuff, you make good stuff.”
The producer spoke on the condition of anonymity on the day that Paramount Skydance announced their hostile takeover bid. They said they were too busy to worry about the sale because they were trying to get a show on air – and they wouldn’t be surprised if another billionaire or trillionaire made another offer for the studio by the end of all this.
“I joke about Elon walking in and doing this, but he could,” they said of the Tesla and X owner. “When you have people worth a trillion dollars, there are no rules.”