Disney CEO Warns Warner Bros. Deal Could Hand Netflix Pricing Power
Disney CEO Bob Iger says Netflix’s bid for Warner Bros. Discovery could hand the streamer pricing leverage and hike subscription costs, urging regulators to scrutinize the deal’s impact on consumers and the wider media market.
Bob Iger just poked his head into the Netflix–Warner Bros. Discovery chatter, and surprise: he is not exactly waving pom-poms. In a new CNBC chat, Disney's CEO basically said, hey, regulators, maybe look closely at what this would do to prices, customers, and the whole entertainment machine before anyone gets too excited.
What Iger actually said
On CNBC's Squawk Box, Iger was asked about Netflix and Warner Bros. working more closely — from the newly announced licensing arrangement to the bigger, louder M&A talk. His core point was simple: if one company ends up with outsized power, that can turn into higher bills for people and friction for the business that makes the stuff we all watch.
'Will one company end up with pricing leverage that might be considered a negative or damaging to the consumer? And with a significant amount of streaming subscriptions across the world, really, does that ultimately give Netflix pricing leverage over the consumer that it might not necessarily be healthy?'
He also said any review should not just be about market share math but about the creative community and the entire film and TV ecosystem — the writers, directors, crews, and pipelines that keep content flowing. Asked if a combined Netflix–Warner would be a scarier rival for Disney, he declined to bite: he would rather not say more than he already did. On the broader corporate face-off swirling around this, he added that it is nice to be watching this one instead of participating in it.
So... what deal are we even talking about?
This is where it gets messy. The conversation mixes two things: a fresh licensing pact between Netflix and Warner Bros., and a much larger acquisition storyline that keeps popping up in the trades.
According to the current round of reporting, Netflix put an $82.7 billion proposal on the table on December 5, covering Warner Bros. studios and HBO Max. Then, earlier this week, Paramount Skydance complicated the board with a hostile takeover attempt pegged at $108 billion. Yes, those are very big numbers. Yes, if any version of this ever got real, regulators would swarm it.
- Dec 5: Netflix floats an $82.7 billion offer that includes Warner Bros. studios and HBO Max.
- Earlier this week: Paramount Skydance jumps in with a $108 billion hostile takeover attempt.
- Iger on CNBC: urges regulators to weigh consumer pricing power and the impact on the creative community and the wider film/TV ecosystem; declines to say if a merged Netflix–Warner would be a nastier competitor; says he is happy to be a spectator on this one.
Why it matters (and why Iger is cautious)
If Netflix ends up with a much bigger library, more franchises, and a major studio strapped to its rocket, it is not hard to imagine subscription prices creeping up and competitors scrambling. That is the kind of pricing leverage and industry ripple effect Iger is flagging. Whether this is a licensing warm-up or a full-on acquisition bid, expect the scrutiny to focus on the same pressure points: what it means for consumer costs, how it shifts leverage with talent, and how it reshapes the pipeline for film and TV.