‘Avatar’ Director James Cameron Calls Netflix-WBD Disastrous, Bats For Paramount Takeover

• Cameron wrote to Sen. Mike Lee (R-Utah), who chairs the Senate antitrust subcommittee, about his concerns.
• The noted filmmaker believes Netflix’s business model is at odds with that of Warner Bros.' movie division.
• The deal drags on, with Warner Bros. recently reentering negotiations with Paramount and putting the Netflix deal on hold.

Noted filmmaker James Cameron has reportedly sounded the alarm over Netflix, Inc.’s proposed acquisition of Warner Bros.’s studio and streaming assets, arguing that it would be disastrous for Hollywood. 

“The business model of Netflix is directly at odds with the theatrical film production and exhibition business, which employs hundreds of thousands of Americans,” Cameron wrote in a letter to Sen. Mike Lee (R-Utah), who chairs the Senate subcommittee on antitrust, competitive policy and consumer rights. 

“It is therefore directly at odds with the business model of the Warner Brothers movie division, one of the few remaining major movie studios,” known for smash hits like “Titanic” and the Avatar series, believes that a Paramount-Warner Bros. merger would be a better alternative.

Cameron said the Netflix deal would lead to massive job losses in the film industry, alter the theatrical landscape, and negatively affect one of America’s largest export sectors, CNBC reported.

“I believe strongly that the proposed sale of Warner Brothers Discovery to Netflix will be disastrous for the theatrical motion picture business that I have dedicated my life’s work to,” Cameron wrote to Lee in a letter dated. Feb. 10.

“The business model of Netflix is directly at odds with the theatrical film production and exhibition business, which employs hundreds of thousands of Americans,” Cameron wrote. “It is therefore directly at odds with the business model of the Warner Brothers movie division, one of the few remaining major movie studios.”

Netflix Deal Concerns

Many in the film industry have previously highlighted Cameron's view: the combination of a major streaming player and a movie studio could result in fewer releases. “It will be a blow to the exhibition community (theater owners and their tens of thousands of employees) at a critical time to have this production output redirected to streaming,” Cameron wrote.

Netflix Co-CEO Ted Sarandos and WBD executive Bruce Campbell testified before the Senate committee on Feb. 3 and argued that the concerns are misplaced. Netflix outlined its investments in the film and TV production industry and its impact on the overall U.S. economy, including $20 billion in planned film and TV spend in 2026, and also committed to a 45-day theatrical window. (full testimony here.)

Paramount Back On Negotiation Table

Netflix agreed to buy Warner Bros.’s studio and streaming assets for $27.75 per share on Dec. 5.

Meanwhile, the deal has become complicated amid Paramount Skydance's ongoing advances, which have pressured the shares of both Paramount and Netflix. 

Earlier this week, Warner Bros., with Netflix's permission, agreed to reopen negotiations with Paramount. Paramount has until Feb. 23 to present its best offer and convince the Warner Bros. board, which will then meet on Mar. 20 for a shareholder vote on the deal.

With the head-to-head bidding underway, observers expect a higher deal price (Paramount’s most recent offer was $30 per share for the entire Warner Bros. enterprise) to emerge and get locked in. Warner Bros. stock has risen 2% this week, after a 2.3% gain the previous week.

Netflix shares are marginally up this week, after seven consecutive weeks of losses. Paramount shares are up 6%, after seven consecutive weeks of losses as well.

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