SAG-AFTRA to Analyze Netflix-WB Deal Before Taking Position, Warns Merger Raises Serious Questions

The actors union SAG-AFTRA has responded to Netflixs successful bid to acquire Warner Bros., emphasizing caution before taking an official stance. While the union acknowledges the potential financial benefits for shareholders, it stresses that the proposed deal prompts numerous critical questions regarding its impact on creative professionals.

In a statement released Friday, the union noted that the acquisition, which involves Netflix paying $82 billion for Warner Bros., including its film and television studios, HBO, and HBO Max, underscores the value of established media companies. SAG-AFTRA highlighted that the economic success of these companies is largely due to the contributions of creative talent at the heart of their operations.

The union added that any agreement benefiting SAG-AFTRA members and industry workers should foster increased production and creative opportunities while maintaining respect for the talent involved. A formal position on the deal will only be adopted after a complete and thorough analysis of the transaction, with particular attention to job security and production commitments.

SAG-AFTRA joins other major entertainment unions in weighing the implications of the merger. The Directors Guild of America has expressed plans to discuss concerns with Netflix, while the Writers Guild has taken a firmer stance, arguing the merger must be blocked on antitrust grounds.

The Netflix-Warner Bros. deal follows competitive offers from Paramount and Comcast. Netflix ultimately prevailed, agreeing to pay $27.75 per share for the studio. Paramount had positioned itself as the only bidder capable of completing the deal without regulatory complications, criticizing Netflix and Comcasts proposals for presenting serious legal challenges.

The acquisition sets the stage for a complex year in Hollywood labor relations. The WGA, DGA, and SAG-AFTRA are preparing for upcoming contract negotiations with the major studios, focusing on revising health and pension plans that have become increasingly unsustainable in recent years.

Author: Maya Henderson