Warner Bros. on the Block as Hollywood Faces Iconic Loss
In 2019, Hollywood experienced a profound sense of loss as 20th Century Fox concluded its 84-year journey as an independent studio—mourning not only for the jobs that were lost but also for the proud legacy that came to an end. However, it was a measured sorrow, the sort that swiftly transitions into acceptance. An air of mourning enveloped the scene this week, as Warner Bros. approached the auction block. Warners, as Hollywood refers to the 102-year-old studio, was expected to possess the resilience necessary to endure into the next media era, even as lesser legacy competitors might struggle. Now it may face a similar outcome as Fox. “To lose Warners as a stand-alone studio would be heartbreaking,” stated Dan Jinks.
Warner Bros. has undergone multiple sales and resales throughout the decades. In 2018, AT&T assumed control through its acquisition of Time Warner for $85.4 billion, and in 2022, Discovery, a cable television company, assumed control. Throughout the spring and summer, Warner Bros. achieved one of the most remarkable box office performances in its history, presenting seven consecutive hits, including Ryan Coogler’s “Sinners,” which is anticipated to make a significant impact at the upcoming Academy Awards. On Tuesday, Warner Bros. Discovery announced its intention to explore the possibility of selling some or all of the company, responding to interest from potential buyers. Among those are Paramount, recently enriched by funds from the Ellison family; Comcast, the owner of Universal Pictures; and Amazon Studios, which possesses Metro-Goldwyn-Mayer. That suddenly made the unthinkable—the end of Warners as a stand-alone studio—a possible (even likely) reality. The union pledged to “work with regulators to block the merger.”
Warner Bros. epitomizes the allure of Old Hollywood more than any other film studio. Bette Davis and James Cagney performed on its soundstages, and the library features “Casablanca, The Maltese Falcon, Bonnie and Clyde, 2001: A Space Odyssey, Dirty Harry, The Shining,” and “Chariots of Fire.” Sam Wasson said “Warner Bros. also hits harder because it was run in the not-so-distant past by men that protected filmmakers—Bob Daly, Terry Semel, Alan Horn, Steve Ross.” Fox also possessed a storied past, celebrating Marilyn Monroe, creating timeless classics such as “The Sound of Music,” and debuting the original “Star Wars” film. By the time Disney absorbed Fox in 2019, Hollywood had already come to see the studio as a lost cause: Many believed the unsentimental Rupert Murdoch, who acquired Fox in 1985, would eventually sell it to another entertainment company.
Fox also experienced a decline during a period when the entertainment economy appeared to be much healthier, at least on the surface. Significant funds flowed into movie and television production as companies endeavored to establish streaming empires, and the North American box office, driven by successes such as “Black Panther” and “Bohemian Rhapsody,” reached a historic $12 billion in 2018. Seven years later, the Peak TV bubble has burst. Film and television productions have swiftly departed from California to shoot abroad, drawn by lower labor costs and more substantial tax incentives. The emergence of artificial intelligence is anticipated to significantly disrupt the job market, and many individuals in Hollywood express concerns regarding censorship during the Trump administration. The atmosphere in the film industry was already somber, and the uncertainty surrounding the future of Warner Bros. has intensified significantly. “I hate this,” stated Larry Gordon. “With Fox gone, this feels like yet another loss within the family.”
