By Valerie Milano
Palm Springs, CA (The Hollywood Times) 12/8/25 – The media world was shaken this week as news spread that Netflix intends to acquire Warner Bros. in a staggering $72 billion deal. But that takeover is suddenly far from guaranteed. Paramount Skydance has surged into the arena with a hostile counteroffer, one that adds an unexpected political twist and places the future of Hollywood’s entertainment landscape in uncertain territory.
In a development raising more than a few eyebrows, President Trump has inserted himself directly into the negotiations, something presidents traditionally avoid in order to maintain ethical distance from federal regulatory processes.
According to reporting from The New York Times, Netflix co-CEO Ted Sarandos made a discreet November visit to the Oval Office as his company prepared its bid, a meeting Trump later publicly praised. Days ago, Paramount Skydance’s David Ellison appeared alongside the president at the Kennedy Center Honors. Soon after, Paramount unveiled its competing offer, revealing in the fine print that an investment firm founded by Jared Kushner, the president’s son-in-law, is involved.
Despite long-standing expectations that presidents remain neutral in major corporate mergers, Trump stated on the red carpet at the Kennedy Center Honors, “I’ll be involved in that decision.”
That remark, combined with the Kushner connection, has fueled widespread concern about conflicts of interest at the highest levels of government.
While these corporate chess moves unfold at the executive level, the consequences will ripple down to everyday consumers, especially those who value seeing films in theaters.
Damon Rubio, owner of D’Place Entertainment and operator of the Mary Pickford Theatre in Cathedral City, issued an open letter to Rep. Raul Ruiz outlining the threat to theatrical exhibition if Netflix gains control of Warner Bros. His argument is straightforward: consolidation leads to fewer movies, and fewer movies mean fewer theaters.
Rubio points to the aftermath of the Disney–20th Century Fox merger as proof. Before the merger, the studios jointly released 26 wide-release films in 2016. By 2025, that number had effectively been cut nearly in half. Box-office totals have plunged as well, with 20th Century titles tracking more than 40% below their 2016 earnings.
Rubio warns that another merger of this scale risks accelerating an already fragile environment:
-
Reduced film output
-
Higher rental costs for theaters
-
Shrinking access for smaller and rural communities
-
A potentially devastating blow to independent cinemas
He calls for strong regulatory oversight and enforceable guarantees that theatrical distribution will not be sidelined.
Dr. David R. King of Florida State University echoes these concerns, suggesting that the real shift won’t be in what consumers pay, but in how and where entertainment is accessed. As streaming platforms consolidate into a “Big Three,” the long-predicted decline of cable and traditional theaters will only intensify.
Netflix, he notes, aims to position itself as the dominant gateway for both film and television, potentially reinforcing a future where in-person cinema becomes increasingly rare.
Paramount Skydance is leaning heavily into the theater-friendly argument as part of its pitch. In a call with media and investors, Paramount pledged to release more than 30 films theatrically each year and to preserve meaningful theatrical windows, an unmistakable contrast to Netflix’s notoriously cool stance toward widespread theatrical releases.
As concerns grow among filmmakers, exhibitors, and industry creatives, Paramount is positioning itself as the guardian of the big-screen experience.
With Warner Bros., home to some of Hollywood’s most valuable IP, caught in the crossfire, the ultimate outcome remains uncertain. But with a sitting president publicly injecting himself into the process, combined with the involvement of his son-in-law’s firm, it’s hard to ignore the political winds blowing behind Paramount’s bid.
If forced to place a bet, the advantage, at least politically, leans toward Paramount.
One thing is certain: whichever company prevails, the result will reshape Hollywood, streaming, and theatrical exhibition for years to come.
