Disaster, catastrophe, nightmare. Hollywood’s creative workers use extreme language to describe Warner Bros’ collapse. The once-powerful studio now faces a breakup or full takeover. Netflix and Paramount Skydance are closing in. The industry braces for renewed turmoil and further job losses.
Warner Bros’ decline hits at the worst possible moment. A historic production slump already grips film and television. The studio’s potential loss threatens thousands of livelihoods. It also removes a major buyer for new film and series ideas.
For decades, Warner Bros defined global cinema. The studio produced Casablanca, Goodfellas, Batman, and Harry Potter. Many workers now fear that legacy will be dismantled piece by piece.
Hollywood forced to choose between two bad options
Actors, producers, and crew describe a mood of dread. Many now weigh two outcomes they both distrust. One path leads to a tech giant accused of hollowing out cinemas. The other leads to billionaire owners with deep political connections.
A camera assistant described Paramount Skydance chief David Ellison as a right-wing billionaire. Ellison is the son of Oracle co-founder Larry Ellison, a close ally of Donald Trump. The assistant said Netflix traditionally avoids intense production micromanagement.
Netflix wants Warner Bros’ most valuable assets. The plan includes the 102-year-old studio, HBO, and the vast content archive. Legacy cable channels and sports brands would be sold separately.
Paramount Skydance has launched a $108bn hostile takeover bid. The offer includes backing from Saudi Arabia, Abu Dhabi, and Qatar. It also involves a fund started by Jared Kushner. Critics warn about censorship and political pressure.
Trump intensified tensions by demanding the sale of Warner’s major news network. His comments deepened fears of government interference.
A collapse shaped by years of industry shocks
The Warner Bros battle follows years of instability. The pandemic reshaped Hollywood’s business model. Film and television production collapsed in 2023. Actor and writer strikes shut down sets nationwide.
Studios and streaming platforms flooded the market in 2022. They chased demand after lockdowns ended. The production surge never returned after the strikes. Jobs disappeared across the industry.
Many media companies have since shut down or merged. David Ellison’s Skydance Media bought Paramount earlier this summer. That deal triggered thousands of layoffs.
When Warner Bros went up for sale, Paramount moved aggressively to buy it. The studio later announced an agreement with Netflix. Paramount then appealed directly to shareholders. It called its offer superior.
One chief executive draws Hollywood’s fury
Across Hollywood, many workers focus their anger on one figure. They blame Warner Bros Discovery chief executive David Zaslav. He earned $51.9m last year. During that time, the company lost more than $11bn. Its stock fell nearly 7%.
An actor said he watched the studio unravel under Zaslav’s leadership. As work dried up, he lost his home. He spoke anonymously to protect future opportunities.
Several workers compared Zaslav to Gordon Gekko from Wall Street. The fictional financier symbolised unchecked corporate greed.
Zaslav took control in 2022. He led the merger between Discovery and AT&T’s WarnerMedia. The consolidation cut several thousand jobs. Zaslav received a generous compensation package.
A producer on the Warner lot accused him of dismantling the studio. The producer said Zaslav chased shareholder value over cultural history. The company rejected that characterisation.
A Warner spokesperson said leadership restored momentum at the studio. The statement cited a strong film slate and a unified long-term DC plan. It also said the streaming service became profitable.
Workers struggle to survive as the industry shrinks
For many workers, the buyer now feels almost irrelevant. Survival dominates their thinking. Consolidation continues to shrink the industry. Artificial intelligence threatens additional roles.
One actor described waking each morning feeling defeated. He now lives without stable housing. He supports his family through odd jobs and food banks. He spoke anonymously to avoid career damage.
He said he would rather see Netflix buy the studio than foreign-backed investors. Others strongly reject that view.
A cinema owner called a Netflix takeover a disaster. The exhibitor said the company openly dismisses theatres. Many US cinemas refuse to screen its films. Streaming-first releases drive that stance.
A producer who worked with all three companies defended Paramount. He said its films still reach cinemas. He argued Paramount did not undermine theatres.
Netflix has tried to ease those fears. The company said it would preserve Warner Bros’ operations. It promised continued theatrical releases. Many in Hollywood want to trust that promise.
Sound technician John Evans pointed to Netflix’s restoration of the Egyptian Theatre. The company bought the landmark venue in 2020. It invested $70m to revive the 1922 cinema. The site hosted the world’s first movie premiere.
Evans said the project showed respect for film history. He added that streaming reflects modern viewing habits.
Business goes on as uncertainty looms over the studio
On the Warner Bros backlot, tourists pose beside the Friends café set. Studio facades double as New York and Los Angeles streets. Inside offices and writers’ rooms, work continues for those still employed.
A producer said they survived seven mergers. Losing a studio hurts, they said, because it reduces buyers. Still, they insisted strong work always survives.
The producer spoke anonymously on the day Paramount announced its hostile bid. Deadlines mattered more than ownership drama. Another bidder would not surprise them.
The producer joked that even Elon Musk could step in. When trillionaires enter the arena, they said, normal rules no longer apply.
