As Netflix moves to finalize its acquisition of Warner Bros Discovery with a new all-cash offer, concerns about antitrust violations are mounting. The $83 billion deal would bring WBD’s massive film and television library under the Netflix banner, a prospect that has US politicians and industry regulators on high alert.
The proposed merger would combine the world’s largest streaming service with one of Hollywood’s oldest and most successful studios. Assets like HBO, Warner Bros Pictures, and franchises such as Batman would become Netflix exclusives. Critics estimate this would give the new entity control over nearly half of the streaming market, effectively crushing competition.
Netflix’s pivot to an all-cash offer is an attempt to speed up the deal and lock it down before these regulatory concerns—or a rival bid from Paramount Skydance—can derail it. Paramount has offered $108.4 billion for WBD, but the bid is hostile and debt-heavy. WBD has rejected it, but Paramount is fighting back by trying to replace the WBD board.
Under the revised Netflix deal, WBD’s linear networks like CNN and the Discovery Channel would be spun off and are not part of the purchase. This separation might help with regulatory approval, but it does not address the core concern of streaming dominance. The political backlash is expected to intensify as the deal moves closer to completion.
Despite the looming regulatory battle, investors are bullish. WBD shares rose 1.6% on the news of the all-cash plan, suggesting that the market believes the deal will survive scrutiny. For Netflix, the risk of regulation appears to be outweighed by the reward of owning the industry’s best content.
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