Netflix’s massive $72 billion bid to buy Warner Bros Discovery’s studios and streaming business is drawing growing political pushback in Washington. While Netflix says the deal will give its 300 million users “more value for their money,” lawmakers from both parties argue it would create an oversized media giant, hurt competition, and potentially raise prices.
What Are Lawmakers Saying?
Criticism has come from prominent figures in both the Democratic and Republican parties, united by antitrust concerns.
Key objections include:
Senator Elizabeth Warren (D): Opponents blasted the plan as a “nightmare,” arguing it would produce “an enormous media giant” controlling nearly 50% of the streaming space, which could mean “costlier plans and fewer options.”
Representative Pramila Jayapal (D): Co-chair of the House Monopoly Busters Caucus, echoed the “nightmare” description, predicting “more price hikes, ads, & cookie cutter content.”
Senator Mike Lee (R): The ranking Republican on the antitrust committee warned the deal “should send alarm to antitrust enforcers around the world” and could mean “the end of the Golden Age of streaming.”
Senator Amy Klobuchar (D): Advocated for the deal to be “closely scrutinized” by regulators.
How is Netflix Defending the Deal?
Netflix executives have presented the acquisition as a positive development for all stakeholders. Co-CEO Ted Sarandos expressed “high confidence” in the regulatory process, calling the transaction “pro-consumer, pro-innovation, pro-worker, pro-creator, [and] pro-growth.”
The company argues that in a fragmented media landscape—where Alphabet’s YouTube is now the most-watched TV platform in the U.S.—the merger would allow for greater investment in content and jobs, ultimately delivering more value to subscribers.
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What Are the Antitrust Hurdles?
Due to its size and market influence, the deal will face strict scrutiny from the DOJ and probably the EU. The main concern is that merging Netflix (300M users) with HBO Max (128M) could reduce competition and give the combined firm excessive control over content and pricing.
Legal experts, like Cornell’s George Hay, suggest regulators may demand asset divestitures—such as selling off parts of Warner’s content library to a competitor like Paramount—to mitigate market share concerns.The DOJ, under Gail Slater, has recently highlighted its concern over rising household costs, especially in entertainment, where prices have been climbing.
What is the Political Context?
The deal review occurs in a highly charged political environment. Netflix is seen as a “political underdog” compared to Paramount Skydance, which has closer ties to the Trump administration. Former President Trump has a history of intervening in media mergers, as he did opposing AT&T’s purchase of Time Warner (which owned CNN).
Senator Warren warned against “political favoritism” and “influence-peddling” in the DOJ review. At the same time, reports say Paramount could still submit a competing bid to Warner Bros shareholders, creating more uncertainty.
Your Questions Answered: Netflix-Warner Bros Deal FAQs
Q: Why are lawmakers from both parties opposed?
A: Their main antitrust worry is that merging Netflix and HBO Max would cut competition, letting the new company raise prices, lower worker pay, and limit creative choices for viewers.
Q: What is the main benefit Netflix claims?
A: Netflix says the deal is “pro-consumer,” claiming it will give its huge subscriber base access to Warner’s popular content (HBO, DC, Harry Potter) without much of a price rise, offering “more value for their money.”
Q: Who will review the deal for approval?
A: The primary regulator is the U.S. Department of Justice’s Antitrust Division. It will also face scrutiny from the European Commission and possibly other international regulators.
Q: Could the deal be blocked or changed?
A:Yes. The merger could be blocked by regulators, or more likely, Netflix may need to offload certain assets to preserve market competition before approval.
Q: Is there a potential rival bid?
A: According to a CNBC report, Paramount Global is considering making an alternative takeover offer directly to Warner Bros Discovery’s shareholders, which could upend the current agreement with Netflix.
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