Lawmakers Demand Job Protections in Netflix-Warner Bros Deal

California lawmakers are demanding that Netflix and important provide written commitments to protect jobs in the entertainment industry if either company is allowed to acquire Warner Bros. Discovery, according to correspondence sent to the heads of both companies this week.

Sen. Adam Schiff and Rep. Laura Friedman, both Democrats representing California districts, have raised concerns about the future of Hollywood employment in light of the massive merger proposals. The lawmakers point to a significant drop in domestic film and television production over recent years and worry that consolidation in the streaming wars could lead to further job losses.

The timing of the lawmakers' push comes as Netflix moves forward with its all-cash bid to acquire Warner Bros. Discovery for $72 billion, a deal that was amended in January to simplify the transaction and speed up the process. Netflix is offering $27.75 per share in cash, plus additional value from the separation of Discovery Global, a new company that will hold assets not acquired by Netflix.

Background

The entertainment industry has faced significant challenges over the past decade as streaming services have reshaped how content is produced and distributed. While Netflix has grown substantially and invested heavily in film and television production in the United States and abroad, other parts of the industry have contracted. The proposed acquisition of Warner Bros. Discovery represents one of the largest consolidation moves in entertainment history.

Warner Bros. Discovery operates major film and television studios, HBO, and HBO Max. The company controls iconic franchises including the DC Universe, Game of Thrones, and The Big Bang Theory. Netflix sees the acquisition as a way to combine its streaming platform with Warner Bros.' century-old content libraries and production capabilities.

The deal has attracted scrutiny from federal regulators and lawmakers concerned about market competition and industry employment. Both Netflix and Warner Bros. Discovery have submitted filings with the Department of Justice and are working with the European Commission on regulatory review.

Key Details

Schiff and Friedman's letter to Netflix co-CEOs Ted Sarandos and Greg Peters and to important leadership seeks specific assurances about job preservation. The lawmakers have expressed alarm at both companies' previous statements about cutting costs, which they fear could translate into layoffs across the entertainment sector.

The lawmakers' concerns reflect broader anxiety in Hollywood about consolidation. The proposed Netflix-Warner Bros. deal would create an enormous entertainment company with unmatched streaming reach and content libraries. If important were to succeed in a competing bid, similar concerns would apply.

Netflix has stated that the acquisition will expand U.S. production capacity and increase investment in original programming. The company's leadership has emphasized that the deal is pro-growth and pro-creator. Netflix said it expects to achieve annual cost savings of at least $2 billion to $3 billion by the third year following closing, but has not specified where those savings would come from.

The Regulatory Path Forward

The transaction is expected to close within 12 to 18 months from when Netflix and Warner Bros. Discovery originally entered their merger agreement in December 2025. Closing remains subject to completion of the Discovery Global separation, receipt of required regulatory approvals, approval of WBD shareholders, and other customary closing conditions.

Netflix and Warner Bros. Discovery have each submitted Hart-Scott-Rodino filings with antitrust authorities. The companies are engaging with the U.S. Department of Justice and European Commission. The financing structure is not subject to Committee on Foreign Investment in the United States review.

WBD shareholders are expected to vote on the transaction by April 2026, according to the amended agreement announced in January.

What This Means

The lawmakers' intervention highlights growing political attention to the entertainment industry consolidation wave. While streaming services have argued that their growth has created jobs and investment opportunities, critics worry that massive mergers could lead to duplicate positions being eliminated and production being concentrated in fewer hands.

For Netflix and important, the pressure from lawmakers could complicate their merger efforts or require them to make public commitments about employment. Such commitments might become conditions of regulatory approval or shareholder votes.

"By coming together with Netflix, we will combine the stories Warner Bros. has told that have captured the world's attention for more than a century and ensure audiences continue to enjoy them for generations to come," – David Zaslav, President and CEO of Warner Bros. Discovery

The entertainment industry employs hundreds of thousands of people across production, post-production, distribution, and related services. California, which is home to Hollywood, has a particular interest in preserving those jobs. Schiff and Friedman represent districts directly affected by entertainment industry employment.

The lawmakers' letter represents an early test of whether Netflix and important will face political obstacles to their merger plans beyond traditional antitrust review. Their response could shape how the deals proceed through regulatory approval and shareholder voting processes.