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Wide Shot: Netflix, Warner Bros. and antitrust

December 9, 2025 | View in browser

collage featuring the WB tower and Netflix building

By Samantha Masunaga

Staff Writer

I'm Samantha Masunaga. I write about the business of Hollywood's movie studios, and I'll be bringing you The Wide Shot each week.

It was just last Friday that Netflix announced a blockbuster $72-billion deal to acquire Warner Bros. film and television studios, HBO and HBO Max — a tie-up that could fundamentally change Hollywood.

Yet on Monday, the stakes got even higher, as Paramount swooped in with a $78-billion hostile takeover bid it plans to take directly to Warner Bros. Discovery's shareholders.

Paramount Chief Executive David Ellison called the Netflix deal an "inferior proposal," saying in a statement that it "exposes shareholders to a mix of cash and stock, an uncertain future trading value of the Global Networks linear cable business and a challenging regulatory approval process."

It all sets the stage for a long and potentially bruising fight. And the Netflix deal would have to overcome some significant regulatory hurdles, experts told me.

"This is a deal that never should have left the boardroom," said David Balto, an antitrust attorney and a former policy director at the Federal Trade Commission during the Clinton administration. "The competitive concerns are profound. This is going to face a lot of opposition at the Justice Department."

For one, antitrust regulators are expected to scrutinize the market share that would be controlled by a combined Netflix and HBO Max.

Netflix outlasted its rivals in the so-called streaming wars to become the dominant platform in a crowded space. That position has led to concern that gobbling up HBO Max would give Netflix outsized power in the streaming space — potentially more than 30% — which would cross a threshold under antitrust law, according to a recent letter from Rep. Darrell Issa (R-Vista) to Atty. Gen. Pam Bondi and Federal Trade Commission Chairman Andrew N. Ferguson.

Netflix executives have argued that analysis of its market share should include YouTube.

In a UBS investor conference Monday, Netflix Co-Chief Executive Greg Peters pointed to Nielsen data, which show Netflix's shares of U.S. TV viewing is still behind YouTube's. Netflix represents just 8% of U.S. TV viewing in October, behind YouTube's 12.9%.

If Netflix were to combine with Warner Bros. Discovery's 1.3% share of U.S. TV viewing, its 9.2% would still be less than that of YouTube. (Other Nielsen data show that Warner Bros. Discovery channels have greater viewership, but Netflix is only interested in one channel, HBO).

"We think there's a strong fundamental case here for why regulators should approve this deal," Peters said. (The deal's overall value is $82.7 billion due to the absorption of debt)

But who would regulators consider a competitor to Netflix? Is it YouTube, with its emphasis on shorter-form content? Or would the main competitors be other streaming services with films and series, like Disney+, Paramount+ and Peacock?

"The analytical issue there is, how do you define the market?" said George Hay, a professor of law at Cornell University and former director of economics in the Justice Department's antitrust division. "What is their combined market share, what do they compete in and what are the alternatives available to consumers?"

The consumer angle would also invite involvement from the Federal Trade Commission. With a shrinking marketplace, the agency would likely investigate whether this could increase streaming prices for customers.

"What keeps Netflix honest is knowing there's an HBO Max that's right over its shoulder," Balto said. "But once they get rid of that, they can lead the easy life, and the need to cut prices or provide better services or bid aggressively for film content — all of that will be diminished."

Meanwhile, Hollywood unions and the Cinema United trade group have also raised concerns that a Netflix ownership of Warner Bros. would lead to fewer films being released in theaters, due to the company's longstanding resistance to traditional movie releases. Netflix has said it would honor Warner Bros.' theatrical release commitments and that future films without those existing deals will also go to theaters.

Beyond the U.S. concerns, Netflix would also need the blessing of regulators across the globe, and could be challenged by even state attorneys general who might have a significant number of entertainment workers in their areas who would question the effect on industry jobs.

Then, there's the politics of it all.

President Trump himself has said he "would be involved" in his administration's decision to bless any deal and that the combined market share of Netflix and Warner Bros. "could be a problem."

As my colleagues Meg James and Stacy Perman have reported, Trump has openly favored Paramount's bid for Warner Bros. Discovery, though word of Paramount backer Larry Ellison's close ties with Trump dampened enthusiasm for the bid in Hollywood. Trump's son-in-law, Jared Kushner, is now also one of the investors participating in the renewed Paramount bid.

Despite this involvement, the Trump administration may not have the final say on the deal, just as in the case of the AT&T deal for Time Warner.

For his part, Netflix Co-Chief Executive Ted Sarandos has also been trying to make his own case to Trump and ventured to the White House last month, Bloomberg reported.

"It's a case in which the political issues are going to play a role," Hay said. "They're so front and center, and Trump has shown an inclination to get involved."

About the only thing that's clear is that it's not going to be a quick process.

"This entire matter is not going to get resolved in a hurry," said Corey Martin, managing partner at Granderson Des Rochers. "The resolution of this matter is very likely to take place over months and potentially years, and not days and weeks."

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Universal Pictures and Blumhouse-Atomic Monster's horror sequel "Five Nights at Freddy's 2" ruled the domestic box office this weekend with a $63 million haul in the U.S. and Canada. While it doesn't surpass the first movie's $80 million opening weekend in 2023, it's a massive boost for theaters, which have seen a string of slower months.

Menacing animatronic figures weren't the only thing that brought moviegoers to theaters this weekend. Disney's animated "Zootopia 2" brought in about $43 million domestically in its second outing. Globally, the sequel has now brought in a total of $915 million.

The strong recent showings for films such as "Zootopia 2" and "Wicked: For Good" have helped push 2025's year-to-date domestic box office total to a little over $8 billion, up just barely — 0.8%, in fact — compared with last year.

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Finally ...

My colleague, Jeanette Marantos, wrote about the 105th anniversary of Altadena's Christmas Tree Lane lighting ceremony and festival this past weekend, a bittersweet memorial for the community after a year of heartbreak.

Thank you for reading The Wide Shot from the Los Angeles Times

Post-Congress, a new way to serve

December 9, 2025 | View in browser

By James Rainey

Staff Writer

Good morning. Here's what you need to know to start your Tuesday, this Dec. 9, 2025.

Katie Hill left Congress in disgrace, but is thriving running a homeless services agency
Paramount launches a hostile $78-billion bid for Warner Bros.
A guide to the perfect L.A. staycation with your girlfriends.
And here's today's e-newspaper.

Published nude photos drove Katie Hill from office. But she's thriving outside of politics

Union Station Homeless Services CEO Katie Hill.

It's been six years since a batch of nude pictures ended the meteoric political rise of Katie Hill, a rookie congresswoman from north Los Angeles County who appeared positioned to be a generational leader in the Democratic Party.

A scandal over the published photographs and accusations of affairs with a campaign worker and a congressional staffer (the latter of which Hill denied) likely will linger forever on the internet. But what's gotten less attention since Hill left the House of Representatives in 2019 is the way she has resurrected her life and career.

She's remarried to a new partner, after divorcing the husband she accused of "smearing" her with the naked photo dump. Her son, born in what felt like a "miracle," given that she has only one ovary, soon will turn 4. And Hill just marked one year heading a Pasadena homeless services agency, which has been hailed as a lifeline by many people displaced by January's fire in Altadena.

"I haven't experienced homelessness but I have experienced adversity and I have experienced life falling apart," Hill said in a recent interview in her office at Union Station Homeless Services. "It's only because of my family support, I didn't end up in a far worse situation ... It would not have been hard to spiral to the point that I lost everything."

She said her odyssey, which at the nadir included thoughts of suicide, has given her new perspective. "It's important for everybody to recognize that a few wrong turns in life ... can take you to a place that is awful and hard to recover from. So I feel like it's important for everybody to remember that and have empathy. When you're looking at somebody who's on the street, it's not just a series of behavioral problems. It's a lot bigger than that. And we need to help people find a way out of it."

A quick sketch of Hill's rise: Born the daughter of a cop and a nurse, she grew up in the Santa Clarita Valley and worked her way through college as a waitress. She got a Master's in Public Administration at Cal State Northridge and soon rose to lead the PATH homeless services agency. At just 29 she became a first-time candidate, challenging Republican incumbent Steve Knight for a House seat representing Simi Valley, Santa Clarita and the Antelope Valley. She won in 2018, flipping a reliably Republican seat and joining a wave of House newcomers that included Alexandra Ocasio-Cortez and Katie Porter. When Speaker Nancy Pelosi began grooming Hill for leadership, a long career in Washington seemed assured.

But that dizzying climb came crashing down with the release of the nude images of her brushing another woman's hair, holding a bong and sunbathing. She soon resigned and went home. But her anguish grew even deeper when her 20-year-old brother overdosed on fentanyl. Hill administered CPR but couldn't save him. "That totally overtook any other grief that I had," she said.

Fortunately for Hill, her work in homeless services had left an impression of her as someone who employed "logic, reason, critical thinking and honest, authentic dialog," said Veronica Lewis, who hired her as a top administrator at HOPICS, which serves South L.A. County, after Hill left Congress.

Those qualities impressed the board at Union Station, the Pasadena agency Hill took over last December. With government funding sources threatened, she imposed a hiring freeze to prevent layoffs on a 292-person staff. She's spent time on the front line with staff, including when she hustled turkeys and boxes of fixings to a long line of cars in a food giveaway one week before Thanksgiving.

"That kind of servant leadership is just really important," said Amanda Green, chief operations officer at Union Station. "She makes big, strategic decisions and she can also get into the weeds, which is hard to do."

Hill mostly steers clear of politics, though she occasionally blasts Trump administration policies she fears will hurt funding for the homeless. She also worried in an interview that unhoused people could be rounded up and forced into detention camps before the 2028 Olympics in L.A.

Hill, 38, doesn't miss being in Congress, especially with Democrats in the minority. But she won't discount the possibility of a return to politics, saying she wouldn't consider it until her son is grown. In her farewell speech on the floor of the House six years ago, Hill apologized to the people she let down. But she ended with this: "Thank you, and I yield the balance of my time for now, but not forever."

Today's top stories

Paramount challenges Netflix for Warner Bros. Discovery

Paramount launched a $78-billion bid for Warner Bros. Discovery, four days after Warner's board unanimously selected Netflix as the winner of the auction.
Last week Netflix agreed to pay $72 billion — or $27.75 a share — and take on more than $10 billion in Warner Bros. debt for a total deal value of $82.7 billion.
Paramount's latest bid offers $30 per share. The company confirmed it submitted the offer hours before Netflix was announced as the winner.
Warner Bros. said its board would review Paramount's offer "in accordance with the terms of Warner Bros. Discovery's agreement with Netflix."
On Monday, Netflix shares dipped, fueling worries on Wall Street about the streaming giant's ability to pull off the acquisition.

The investigation and grief following the killing of a California farming tycoon's wife

Last month Kerri Ann Abatti was fatally shot in her Pinetop, Ariz., home, according to the Navajo County Sheriff's Office.
Abatti was entangled in a contentious divorce battle with Mike Abatti, a wealthy farmer from one of the most prominent families in the Imperial Valley.
News of the case has shaken the community of the Imperial Valley, where the Abattis are among the largest landowners.

Trump administration cracks down on legal immigration

After two National Guard members were shot near the White House, leaving one dead, the federal government launched an attack against legal immigration.
The shooting suspect entered the U.S. in 2021 from Afghanistan and was approved for asylum this year, and the administration has since halted visa and immigration applications of people from the Islamic country.
Decisions on all applications filed with U.S. Citizenship and Immigration Services by people seeking asylum also have been paused.

The 2026 Golden Globes

The Golden Globes fell under harsh public scrutiny in 2021 — now, the award show's ethics are worse than ever, and no one seems to care, columnist Glenn Whipp writes.
Here is the full list of nominations.
Cynthia Erivo makes history with her second "Wicked" Golden Globe nomination.

What else is going on

The journey on Amtrak's Southwest Chief is 43 hours from L.A. to Chicago. Here's why these train people like it that way.
The Supreme Court's conservatives sound ready to give Trump more power to oust officials of independent agencies.
In the battle for street parking in L.A., one man wages war through TikTok requests.
Earthquake swarms keep rattling the Bay Area. What's going on?
The country's largest all-electric hospital is about to open in Orange County.
A California appliance chain abruptly shut down its stores without warning, leaving some orders in limbo.

Commentary and opinions

There is courage lacking to fix California's deep-rooted budget shortfall, Capitol Journal columnist George Skelton writes.
California is failing its Latino population. Here's how, contributing writer Joel Kotkin argues.
Colleges oversold education. Now they must sell connection, guest contributor Eric Anicich writes.
Americans still have a choice in whether to let the nation turn authoritarian, guest contributor Michael S. Roth writes.
Closing the labor-force gap is the only fix for the housing crisis, guest contributor Angelo Farooq writes.

This morning's must reads

For your downtime

Going out

Staycation: A guide to having the best girls trip — without having to leave L.A.
Theatre: Indulge in drama with the best theater of 2025.
Movies: Catch these five Oscar contenders that are surging (or stalling) after the year's first big prizes.

Staying in

Baking: Perfect your pies with these baking tips from the internet's pie queen.
Recipe: Or get the holiday baking started with these brown sugar cookies with maple drizzle.
✏️ Get our free daily crossword puzzle, sudoku, word search and jigsaw games.

Question of the day: What do you wear when you fly?

Mike Barnes said, "Depends on the weather and where I'm going, but I want to be comfortable. If it's warm, I'm wearing shorts and flip flops. Otherwise, jeans and preferably tennis shoes unless there'll be snow."

Email us at essentialcalifornia@latimes.com, and your response might appear in the newsletter this week.

And finally ... your photo of the day

Today's great photo is from staff photographer Eric Thayer of Altadena's annual Christmas Tree Lane lighting ceremony and festival on Saturday. This event allowed the community to come together after being ravaged by the Eaton fire that burned down neighborhoods and left thousands homeless.

Have a great day, from the Essential California team

Jim Rainey, staff reporter
Hugo Martín, assistant editor, Fast Break desk
Kevinisha Walker, multiplatform editor
Andrew J. Campa, weekend writer
June Hsu, editorial fellow
Karim Doumar, head of newsletters

How can we make this newsletter more useful? Send comments to essentialcalifornia@latimes.com. Check our top stories, topics and the latest articles on latimes.com.

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Wide Shot: Netflix, Warner Bros. and antitrust

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