The Netflix and Warner Brothers Discovery (WBD) agreement is far from set in stone as Paramount brings the case to court, political tension enters the mix and employees fear for their careers.
WBD is no stranger to success, with some of its highest-grossing movies being “Barbie (2023)”, “The Dark Knight Rises (2012)” and several of the original Harry Potter movies (based on the books by J.K. Rowling). The licenses to these franchises and several others are planned to be sold to Netflix in an 82.7 billion dollar agreement with the WBD board.
“I never really thought [Warner Brothers] would be selling… I always thought they were doing good,” explains HEA
sophomore Andrea Hernandez. She expresses her feelings about the sale, saying, “I feel like in Warner Brothers, there’s a lot of creativity and I just hope that Netflix doesn’t ruin that.”
Following Netflix’s deal, Paramount presented it’s own offer to buy WBD. “I would actually prefer Paramount [purchasing Warner Bros.] because Paramount actually does have a lot of shows and movies that I personally would watch over Netflix,” says senior and Yearbook Managing Editor Devon Acosta. Adding on, he states, “Netflix has gotten kind of boring over the years because it is just copy and paste now.”
Despite Paramount’s offer, WBD has decided to stand firm on its agreement with Netflix. This has led to Paramount suing WBD in a Delaware court, claiming that the WBD board is favoring Netflix. One key supporter of Paramount’s offer is Larry Ellison, who has personally guaranteed $40.4 billion of equity financing for the deal.
Larry Ellison’s fortune comes from being a Co-founder of Oracle, a database software company. He has held fundraisers for Donald Trump in the past and is considered a supporter of the Trump administration. Ellison’s political ties add a level of concern that the purchase of WBD will face political conflict with his involvement.
“The moment a political figure gets involved in sponsoring a piece of media, then it becomes associated with that political party too,” says Nick Lee, an HGM senior. He believes that “media should, in general, take a neutral sort of stance that anybody can enjoy.” Aside from political influence, WBD’s global releases have left lasting impressions on many fans, but the people behind their creation are at risk of unemployment.
Government and Economics teacher, Mr. Barragan, explains, “when you have such a few [number] of people controlling a whole industry, we always wonder about jobs.” Mergers often result in layoffs, whether it’s for cutting costs or getting rid of duplicate roles. People working at WBD are highly likely to lose their jobs regardless of who ends up purchasing the company.
To make matters worse, WBD employees losing their jobs would further increase the ongoing struggle of finding work in the entertainment Industry. Mr. Barragan points out that “thousands of the people that make movies or TV shows possible work in our city and as of today many of them can’t find [jobs].”
The inability to find employment can be linked to mergers, downsizing and the emergence of AI. Mr. Barragan compares the job loss seen in Hollywood to the closure of car factories in his community when he was younger, stating, “I saw what happened when those factories left and these people lost their jobs, our communities changed. I’m worried that something similar could happen [with the entertainment industry].”
The truth is that WBD being sold is more than just a transaction; it’s a shift in the entertainment industry and its future. As Netflix’s agreement is challenged by Paramount, the ever-evolving entertainment landscape is becoming more and more difficult to navigate, leaving the creative minds behind films struggling to make a living.
