James Cameron Warns Netflix–WBD Deal Would Be A 'Sinking Ship' Moment For Theatrical Film Business
James Cameron has voiced concerns over Netflix's proposed acquisition of Warner Bros. Discovery, warning it could lead to job losses and harm the theatrical film industry. In a letter to Senator Mike Lee, he described the potential fallout as a 'sinking ship' moment for cinemas. The Department of Justice is investigating the deal's impact on theaters, while Netflix has made a $27.75 per share offer, facing competition from Paramount's $31 per share bid. Analysts suggest Netflix may still prevail in the bidding war.
“Titanic” and “Avatar” director James Cameron has reportedly expressed his apprehensions about Netflix‘s (NASDAQ:NFLX) proposed purchase of Warner Bros. Discovery‘s (NASDAQ:WBD) film studio in a letter.
Cameron sent a letter to Sen. Mike Lee (R-Utah) last week, cautioning that the acquisition could lead to significant job losses in Hollywood and fundamentally change the U.S. theatrical landscape. He also expressed concerns about the potential negative impact on one of America’s largest export sectors, CNBC reported on Thursday.
In his letter, Cameron cautioned that a sale of Warner Bros. Discovery to Netflix would severely damage the theatrical film business, to which he has devoted his career. While acknowledging his films' success in streaming markets, he likened the potential fallout for cinemas to a "sinking ship."
Sen. Lee, who leads the Senate antitrust subcommittee, held a February 3 hearing on the proposed Netflix–Warner Bros. deal, after which Cameron sent a letter; Netflix co-CEO Ted Sarandos and a WBD executive testified at the session.
In its testimony, Netflix highlighted its planned $20 billion global film and TV spending for 2026, mostly in the U.S., and said a potential deal would boost, not cut, production investment, backed by a stronger combined company and expanded studio facilities.
All Eyes On Netflix
On Wednesday, a report said that the Department of Justice (DOJ) is currently probing the impact of Warner Bros. Discovery’s potential sale on theatre businesses and has summoned some of the largest theatre chain owners in the country to assess the outcome.
On Thursday, reports noted that Netflix has plenty of cash available to raise its bid for Warner Bros. Netflix has offered $27.75 per share, valuing Warner Bros’ studio and streaming assets at $82.7 billion. It has time until February 23 to match Paramount SkyDance Corp‘s (NASDAQ:PSKY) revised offer to purchase Warner Bros. Paramount’s informal offer of $31 per share has piqued the interest of WBD’s board. Notably, Warner Bros is still preparing for a March 20 shareholder vote on Netflix’s offer.
On the other hand, Gary Black, a market analyst, expects Netflix to “emerge as victor” in the contest. However, he added that even in a scenario where Paramount succeeds in clinching the deal, Netflix shares could rebound toward the $100.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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