The Directors Guild of America (DGA) is set to meet with Netflix to discuss serious concerns regarding the streaming service’s potential acquisition of Warner Bros. Discovery (WBD). This development follows reports that Netflix has emerged victorious in the bidding war for WBD and is preparing for exclusive negotiations to finalize the deal.
A spokesperson for the DGA emphasized that this situation “raises significant concerns” for the organization. The DGA believes a vibrant and competitive industry is vital for fostering creativity and protecting the careers of directors and their teams. The spokesperson stated, “We will be meeting with Netflix to outline our concerns and better understand their vision for the future of the company.” Until this meeting takes place, the DGA will refrain from further comments.
Industry Reactions to the Acquisition
The DGA is not the only organization voicing apprehension about the proposed merger. The Writers Guild of America (WGA), which comprises both East and West branches, previously issued a joint statement in October 2023, declaring their intention to oppose any merger between WBD and Paramount. They warned that further media consolidation “would be a disaster for writers, for consumers, and for competition.”
On Thursday, October 26, 2023, the negotiations became increasingly competitive, with Paramount making aggressive moves to counter Netflix’s offer. Reports indicate that Netflix’s bid was around $28 per share, primarily in cash. WBD, which placed itself on the market in October to explore potential offers, received three consecutive proposals from Paramount before Netflix’s decisive bid.
WBD aims to secure a deal by mid-to-late December 2023, highlighting the urgency surrounding this acquisition. As major industry players continue to weigh in on the implications of such a merger, the DGA’s forthcoming discussions with Netflix will likely set the tone for how the creative community perceives this transition.
As the situation unfolds, stakeholders watching closely include directors, writers, and other industry professionals concerned about the future of media competition and creative rights. The outcome of these negotiations could reshape the landscape of the entertainment industry significantly.
