Netflix’s acquisition of Warner Bros. Discovery, which would mark a seismic shift in Hollywood, is already facing massive opposition on the antitrust front.
Many lawmakers on both sides of the aisle have expressed anti-monopoly concerns over the $82.7 billion deal. As the world’s leading streaming service, Netflix will dominate the entertainment market further by combining its own platform with WBD’s HBO Max. If finalized, this would further solidify the streaming giant’s grip on Hollywood and effectively narrow the competition.
In a statement, Sen. Elizabeth Warren (D-MA) called the deal an “anti-monopoly nightmare.”
“A Netflix-Warner Bros. would create one massive media giant with control of close to half of the streaming market,” she wrote on X. “It could force you into higher prices, fewer choices over what and how you watch, and may put American workers at risk.”
Warren then urged the Department of Justice to “enforce our nation’s anti-monopoly laws fairly and transparently,” rather than letting the Trump administration’s review of the deal “invite influence-peddling and bribery.” The senator has similarly claimed President Donald Trump tainted the Paramount-Skydance merger process this year after Paramount settled Trump’s lawsuit against CBS News.
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Democratic lawmakers have scrutinized Paramount Skydance, attempting to determine whether there was a connection between the company’s $16 million settlement and the approval of the $8 billion merger by the Federal Communications Commission.
Some Republican lawmakers also oppose the Netflix-WBD acquisition on antitrust grounds. Sen. Mike Lee (R-UT) expressed his concerns before the deal materialized, warning Netflix’s bolstered market dominance “would mean the end of the Golden Age of streaming for content creators and consumers.”
Last month, Rep. Darrell Issa (R-CA) and Sen. Roger Marshall (R-KS) penned similar letters that raised competition concerns to the DOJ about a possible Netflix-WBD merger.
“With more than 300 million global subscribers and a vast content library, Netflix currently wields unequaled market power,” Issa wrote. “Adding both HBO Max’s subscribers and Warner Bros.’ premier content rights would further enhance this position, reportedly pushing the combined entity above a 30 percent share of the streaming market: a threshold traditionally viewed as presumptively problematic under antitrust law.”
A major Hollywood union also jumped into the fray on Friday, issuing a rather forceful statement criticizing the deal.
“The world’s largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent,” the Writers Guild of America said. “The outcome would eliminate jobs, push down wages, worsen conditions for all entertainment workers, raise prices for consumers, and reduce the volume and diversity of content for all viewers. Industry workers along with the public are already impacted by only a few powerful companies maintaining tight control over what consumers can watch on television, on streaming, and in theaters. This merger must be blocked.”
Netflix announced the merger on Friday morning, hours after initial reports revealed the No. 1 streaming service had entered exclusive talks with WBD. The announcement followed a tumultuous 24 hours.
On Thursday, WBD requested a third round of bids from Netflix, Paramount Skydance, and Comcast after Paramount Skydance claimed WBD’s sale process was biased in favor of Netflix. WBD denied the allegation, saying its board “robustly complied” with all fiduciary obligations.
Netflix ultimately emerged victorious in the bidding war, with a price of $27.75 per share, which amounts to the total enterprise value of $82.7 billion. Its cash-and-stock bid was mostly cash.
By contrast, Paramount Skydance made an all-cash bid of $30 per share. The company is reportedly launching a hostile bid to take over WBD because its offer had a higher value than what Netflix offered, according to business journalist Charles Gasparino. Paramount Skydance is expected to make its case to the WBD shareholders who have a vested interest in which company buys the for-sale studio.
Of the three bidders, Paramount Skydance has fewer regulatory hurdles to overcome and benefits from its relationship with Trump. David Ellison, the son of Trump ally Larry Ellison, leads the company.
Unlike Paramount Skydance, Comcast is apparently bowing out of the bidding war after Netflix decisively won.
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While Trump has not publicly commented on the proposed Netflix-WBD merger, the DOJ’s Antitrust Division is reportedly planning to stop the agreement from proceeding. Gail Slater, the department’s antitrust chief, has held a series of meetings on the Hollywood studio’s sale. If Slater takes action, the sale could be held up for a few years while a federal investigation is underway.
As it stands, Netflix and WBD are expected to finalize the deal by the third quarter of 2026. However, the closing date is entirely dependent on the Trump administration.
