‘A Nightmare Unfolding’: Inside the Fight for Warner Bros and the Uncertainty Rocking Hollywood

On the Warner Bros lot in Burbank, tourists still line up for photos in front of the Friends café set, unaware that behind the familiar façades, one of Hollywood’s oldest institutions is fighting for survival. For many of the people who make their living there, the possible breakup or sale of Warner Bros feels less like a business deal and more like the end of an era.

Across Hollywood, words like disaster, catastrophe and nightmare are increasingly common as Netflix and Paramount Skydance circle the 102-year-old studio. Whichever way the sale goes, creatives fear it will deepen an already painful production slump and lead to further job losses in an industry still reeling from years of disruption.

Warner Bros’ decline has landed at a particularly fragile moment. After the pandemic shutdowns, Hollywood briefly surged back to life in 2022, only to be hit by simultaneous writers’ and actors’ strikes the following year. When the strikes ended, the boom never returned. Productions slowed, studios merged, and thousands of workers were pushed out of steady employment.

Now, with Warner Bros potentially changing hands, many fear the consequences will be lasting. Beyond the symbolism of losing a studio that produced classics from Casablanca to Harry Potter, the practical impact is clear: fewer buyers for film and television projects, and fewer opportunities for those trying to stay afloat.

Choosing the “lesser evil”

For many in the industry, the debate has narrowed to an uncomfortable choice. Netflix, the tech giant often blamed for accelerating the decline of movie theatres, is one option. The other is Paramount Skydance, backed by billionaire investors and sovereign wealth funds from the Middle East, and led by figures seen by some as politically close to former US president Donald Trump.

Some crew members privately say they trust Netflix more when it comes to creative autonomy, arguing that the streamer is less inclined to micromanage productions. Others worry deeply about Netflix’s streaming-first approach and what it could mean for cinemas.

“This is a company that has openly questioned whether theatres are even necessary,” said one US film exhibitor. “For people who believe in the big screen, that’s terrifying.”

Supporters of Paramount Skydance counter that, whatever its politics, it still believes in theatrical releases. “At least we know movies will get to cinemas,” said a producer who has worked with all three companies.

A lightning rod for anger

If there is one figure uniting frustration across Hollywood, it is Warner Bros Discovery chief executive David Zaslav. Under his leadership following the 2022 merger of Discovery and WarnerMedia, the company cut thousands of jobs while reporting billions of dollars in losses. Zaslav’s pay package, which topped $50m last year, has only sharpened resentment.

Several creatives likened him to Gordon Gekko, the fictional embodiment of corporate greed from the film Wall Street. “He came in, stripped it down and put a for-sale sign on it,” said one producer who asked not to be named.

Warner Bros Discovery rejects that narrative. In a statement, the company said the studio has strengthened its film slate, relaunched the DC universe under a unified long-term plan, and turned its streaming business profitable for the first time.

Still, for many workers, those assurances offer little comfort.

Lives on hold

Behind the headlines and billion-dollar bids are personal stories of loss. Some actors and crew members say the drying up of work has cost them their homes. Others juggle freelance jobs outside the industry while waiting for the next production that may never come.

One actor, now homeless with his family, said the sale of Warner Bros almost feels secondary to the larger reality facing creatives. “I just want to survive long enough to work again,” he said quietly. “At this point, any outcome feels uncertain.”

The future of a Hollywood giant

Netflix has attempted to calm fears, saying it would preserve Warner Bros’ existing operations and continue releasing films in theatres. Some point to its restoration of the historic Egyptian Theatre in Hollywood as proof that the company values cinema history as well as streaming.

Others remain sceptical, warning that consolidation and the growing use of artificial intelligence are reshaping entertainment faster than workers can adapt.

Back on the Warner Bros lot, writers still pitch ideas, producers still chase green lights, and crews still hope the next project will stick. One veteran producer, who has lived through multiple studio mergers, summed up the mood with weary pragmatism.

“It’s sad to lose a studio, because it means fewer chances for everyone,” they said. “But people here keep working because that’s what we do. In the end, if you make good stuff, you make good stuff – no matter who owns the gate.”

Whether that faith will be enough to steady Hollywood through its latest upheaval remains an open question.