Netflix Inc. (NFLX) just won an $82.7 billion bidding war for Warner Bros. Discovery (WBD), which should theoretically make the streaming giant an even more dominant force in entertainment. Both boards approved the transaction. Everyone should be celebrating, right?

Not quite. The deal is running into opposition from practically every direction you can imagine. The Trump administration is signaling it would prefer a different buyer. Movie theater chains are worried about their survival. Hollywood talent and producers are sounding alarm bells. This thing could drag on for years or never happen at all.

How the Deal Came Together

Warner Bros. Discovery put itself up for sale after being pursued by Paramount Skydance (PSKY). Netflix emerged as the winning bidder, agreeing to pay $27.75 per share in a combination of cash and Netflix stock. But there's a catch: Warner Bros. needs to first spin off its cable networks, a process expected to wrap up in the third quarter of 2026.

The auction attracted serious interest. Netflix, Paramount Skydance, and Comcast Corporation (CMCSA) made it to the final round of bidding. Netflix won, but that victory is looking increasingly complicated.

The Trump Administration Has Other Plans

Here's where things get interesting. The White House under President Donald Trump appears to have a preferred buyer, and it's not Netflix.

"Who owns Warner Bros. Discovery is very important to the administration," a senior Trump administration official told the New York Post. "The Warner board needs to think very seriously not just on the price competition but which player in the suitor pool has been successful getting a deal done."

Translation? They want Paramount Skydance to win. The official made it even more explicit: "And that points to the Ellisons."

Paramount Skydance CEO David Ellison and his father, Oracle co-founder Larry Ellison, are longtime Trump allies. The administration approved their recent merger of Paramount and Skydance, though that deal also faced regulatory scrutiny and took considerable time to close. Some alleged it got a boost after Paramount paid $16 million to settle a lawsuit Trump brought against the company's "60 Minutes" program. Sen. Elizabeth Warren (D-Mass.) went so far as to call it a bribe.

Since the merger closed, Paramount Skydance has made several moves that look like attempts to stay in Trump's good graces. The company overhauled the CBS News team, announced that Stephen Colbert's late-night show will end, and greenlit a fourth "Rush Hour" movie after Trump mentioned he liked the franchise.

The senior official's warning was clear: "Warner really needs to think really hard about the odds of success getting the deal cleared with players outside of Paramount Skydance."

While Trump can't unilaterally block the deal, his administration's public preference creates significant regulatory risk. For Netflix, this could mean intensified scrutiny from multiple agencies about combining two major streaming platforms and the resulting market concentration.

Theater Owners See an Existential Threat

Movie theaters have another major concern: losing one of the few remaining media companies that actually prioritizes theatrical releases. Merging Netflix and HBO Max would create a streaming behemoth with even less incentive to support traditional cinema.

Netflix has long advocated for dramatically shorter windows between theatrical release and streaming availability. The company only recently started warming to theaters at all. AMC Entertainment Holdings (AMC) just reached a deal with Netflix on some upcoming releases after years of refusing to show the streamer's films.

Cinema United, a theater owners group, isn't waiting to voice opposition. President and CEO Michael O'Leary warned that the acquisition would harm theaters "from the biggest circuits to one-screen independents in small towns in the United States and around the world," according to The Hollywood Reporter.

"But Netflix's stated business model does not support theatrical exhibition," O'Leary said. "In fact, it is the opposite."

Netflix co-CEO Ted Sarandos tried to calm those fears on Friday, telling investors and media that the company isn't opposed to theatrical releases, as Variety reported.

"It's not like we have this opposition to movies into theaters," Sarandos said. "My pushback has been mostly in the fact of the long exclusive windows, which we don't really think are that consumer friendly."

Sarandos promised Netflix would honor Warner Bros.' existing theatrical release commitments. But theater owners remain skeptical about how long that commitment will last and whether Netflix will gradually shrink the theatrical window over time.

Hollywood Insiders Sound the Alarm

The concerns aren't limited to theater operators. Producers and executives are worried about what a Netflix-dominated landscape means for the industry.

A UK film producer was blunt in comments to Deadline: "This feels like the death of Hollywood."

A British TV producer told the publication the merger would be "very bad" for the industry, potentially leading to significant job losses across production.

Meanwhile, anonymous Hollywood executives sent a letter to Congress outlining their concerns about the deal, Variety reported. The letter warned that Netflix could "destroy" the theatrical sector and dramatically reduce the number of films released in cinemas. It also argued that Netflix would have enough market power to dictate theatrical window lengths and drive down the licensing fees it pays to movie studios.

The anonymity is telling. These are people who likely need to maintain relationships with Netflix but feel strongly enough about the competitive concerns to risk speaking out, even without attribution.

What Happens Next

This deal faces a long and uncertain path. The cable network spinoff won't be complete until late 2026, giving opposition plenty of time to mobilize. Regulatory review will likely be intensive given the Trump administration's clear preference for a different outcome. Theater owners and Hollywood talent will continue lobbying against approval.

Netflix won the bidding war, but winning approval is an entirely different battle. The company is about to learn that sometimes the hardest part isn't making the highest offer—it's convincing everyone else that your victory is good for the industry.