CaliToday (/2025): The battle for the future of Hollywood took a sharp turn this morning as Disney CEO Bob Iger publicly criticized the proposed acquisition of Warner Bros. Discovery’s film and streaming assets by Netflix. Speaking on CNBC’s Squawk Box, Iger warned that such a consolidation could hand the streaming giant unprecedented leverage, ultimately harming consumers worldwide.
The "Monopoly" Warning
While refraining from announcing an official corporate intervention, Iger analyzed the deal through the lens of a federal regulator. His primary concern lies in the sheer market dominance a combined entity would possess.
"If you look at this from a regulatory standpoint, the first question must be the direct impact on the consumer," Iger stated. He argued that combining Netflix's massive global subscriber base with the premium content libraries of Warner Bros. and HBO would create a behemoth capable of dictating market terms.
"Does this grant a single company the leverage to set prices in a way that inflicts long-term damage on the market?" Iger asked. He emphasized that regulators must be "extremely cautious," warning that such "unprecedented pricing power" could distort competition and leave subscribers with fewer choices and higher bills.
A High-Stakes Bidding War
Iger’s comments come amidst a chaotic week of deal-making that has shaken the media industry:
The Netflix Deal: Last week, Netflix and Warner Bros. Discovery unveiled a complex $72 billion agreement. Under the terms, Netflix would acquire the Warner Bros. film studio and HBO streaming operations, while the traditional cable TV networks (such as CNN and TNT) would be spun off into a separate, publicly traded entity.
The Paramount Counter-Strike: Complicating matters, Paramount Skydance launched a surprise hostile counter-bid just days later. They offered an all-cash deal of $30 per share, valuing Warner Bros. Discovery at over $108 billion significantly higher than the Netflix proposal. Reports indicate Paramount is considering sweetening their offer by another 10% to secure the deal.
Threatening the Hollywood Ecosystem
Beyond consumer pricing, Iger highlighted the existential threat such a merger poses to the broader creative economy, particularly movie theaters.
"The global film industry operates on razor-thin margins," Iger noted. He cautioned that a streaming-focused monopoly could de-prioritize theatrical releases, severing the essential cooperation between studios and exhibitors that keeps the box office alive.
Lessons from 21st Century Fox
Iger’s warnings are rooted in personal experience. He reflected on Disney’s own $72 billion acquisition of 21st Century Fox in 2017. While that deal bolstered Disney’s content library, it also burdened the company with massive debt just before the global pandemic struck.
"Protecting the health of the entire global media ecosystem is vital, not just the success of one individual enterprise," Iger remarked, suggesting that mega-mergers often carry unforeseen systemic risks.
What’s Next?
When pressed on whether Disney would actively lobby Washington to block the Netflix deal, Iger declined to comment. However, his message was unmistakable: before greenlighting the creation of a new media superpower, regulators must scrutinize the potential for anti-competitive behavior that could reshape the entertainment landscape for decades to come.
Sources: CNBC, AP
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