James Cameron Warns Netflix–WBD Deal Would Be A 'Sinking Ship' Moment For Theatrical Film Business
James Cameron Warns Netflix–WBD Deal Would Be A 'Sinking Ship' Moment For Theatrical Film Business
Namrata SenTue, February 24, 2026 at 1:30 AM UTC
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“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."
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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.
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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.
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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.
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