Director James Cameron has entered the growing debate over Netflix’s proposed $83 billion acquisition of Warner Bros. Discovery, warning lawmakers that the deal could threaten traditional movie theaters and limit creative opportunities across Hollywood. In a letter to Sen. Mike Lee (R-UT), obtained by CNBC, Cameron called the sale “disastrous for the theatrical motion picture business” and urged the Senate subcommittee on antitrust to scrutinize the merger closely.
“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. He argued the merger would cut consumer choice, shrink the number of major studios willing to finance films, and ultimately reduce jobs. “My first love is the cinema,” he added, noting his concerns were rooted in preserving the industry’s long-term health.
Sen. Lee, who chairs the Subcommittee on Antitrust, Competitive Policy, and Consumer Rights, confirmed that his office had been contacted by multiple industry figures about the proposed deal. “We have received outreach from actors, directors, and other interested parties,” Lee said. “I share many of their concerns.” He plans to hold another hearing on the issue following a February 3 session where Netflix co-CEO Ted Sarandos and Warner Bros. executives testified.
Sarandos publicly pushed back on Cameron’s claims Friday, telling Fox Business he was “surprised and disappointed” by the director’s statements. “I met with James personally in late December and laid out for him our 45-day commitment to theatrical exhibition of films,” Sarandos said on The Claman Countdown. “I have talked about that commitment countless times and swore under oath before the Senate that this is what we’d be doing.” He denied ever promising a 17-day theatrical release window, suggesting Cameron may have been influenced by what he called a “Paramount disinformation campaign.”
The dispute between the filmmaker and the streaming executive comes during tense negotiations between Netflix, Warner Bros. Discovery, and Paramount Global. Paramount, led by David Ellison, has mounted a rival $108 billion hostile takeover bid, claiming its offer is better aligned with U.S. regulators and the entertainment workforce. Warner Bros. shareholders are expected to vote on Netflix’s board-approved proposal March 20.
In a statement last week, Netflix defended its plan as a “growth investment,” insisting the merger would expand opportunities rather than limit them. “We are not acquiring these amazing assets to shut them down, but to build them up,” the company said. Executives highlighted what they called strong cash flow and an all-cash transaction structure designed to maintain financial flexibility.
Paramount, meanwhile, said it cleared a federal waiting period under the Hart-Scott-Rodino Antitrust Act, signaling confidence that it can finalize a deal for Warner Bros. Discovery “without statutory impediment.” The network’s leadership continues to argue that Netflix’s buyout would concentrate too much power in a single streaming giant, raising fresh antitrust red flags.
Following up from our antitrust hearing on the Netflix/Warner Brothers merger, I asked the companies these questions for the record.
I look forward to receiving their responses next week.
The subcommittee continues to examine this merger and the competition issues it raises. pic.twitter.com/NbxYvvgqZV
— Mike Lee (@SenMikeLee) February 20, 2026
Sen. Lee has since posted publicly that he intends to press Netflix and Warner Bros. executives for additional answers about how the merger would affect competition. “I look forward to receiving their responses next week,” the Utah senator said in a statement. Analysts say the fight over Warner Bros. could reshape Hollywood’s balance of power for years to come. The tension between streaming growth and theatrical preservation is still far from resolved.
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