Huge Netflix-Warner Bros. Deal Attracts Heat from Politicians
- Alexangel Ventura
- a few seconds ago
- 2 min read
As the deal between Warner Bros. Discovery and Netflix continues toward realization, the proposed business acquisition has garnered significant opposition by some of the nation's most prominent political leaders.
On December, Netflix agreed to formally purchase Warner Bros.' film and television studies for roughly $82-83 billion, equating to roughly $72 billion in equity value after factoring in debt accruement. The deal would include the selling of the streaming businesses HBO, HBO Max, and DC Studios, these three ranking among the highest-valued entertainment entities in the economy.
The high price bid offered by Netflix came after almost equally strong proposals from Paramount Skydance and Comcast.
The company first opened up toward selling itself over to a shareholder as it prioritized strategic alternatives to manage its whopping $33.52 billion debt, preventing the company from committing the same level of investment spending on par with rival companies in the entertainment field like Disney and digital streaming platforms.
Per Netflix's executives, the company plans on using its control over those sects of Warner Bros. to integrate the Warner Bros. library and franchises into Netflix's global streaming platform in an effort to offer potential and current consumers "more of what they love." Though, concern has arisen over how this could affect future Hollywood dynamics, from content diversity to labor conditions to theatrical releases.
Growing bipartisan opposition to the deal in the U.S. Senate has been seen recently. Elizabeth Warren, a Democratic senator from Massachusetts, labeled the deal an "anti-monopoly nightmare." She argued that this would "create one massive media giant with control of close to half of the streaming market — threatening to force Americans into higher subscription prices and fewer choices over what and how they watch, while putting American workers at risk."
“Under Donald Trump, the antitrust review process has also become a cesspool of political favoritism and corruption. The Justice Department must enforce our nation’s anti-monopoly laws fairly and transparently — not use the Warner Bros. deal review to invite influence-peddling and bribery," her pressroom argued as the rationale for this deal.
Even fiscal conservative Roger Marshall, Republican senator from Kansas, believed the deal posed many antitrust risks. "Netflix’s $82 billion attempt to buy Warner Bros. would be the largest media takeover in history — and it raises serious red flags for consumers, creators, movie theaters, and local businesses alike," Mr. Marshall slammed. "One company should not have full vertical control of the content and the distribution pipeline that delivers it. And combining two of the largest streaming platforms is a textbook horizontal Antitrust problem. Prices, choice, and creative freedom are at stake. Regulators need to take a hard look at this deal and realize how harmful it would be for consumers and Western society."
It is unsure how the Trump administration will respond, but for now, many members in the legislative branch are expected to put up a great opposition to this deal, which is expected to be made in 12-18 months, according to Netflix co-CEO Ted Sarandos, roughly aligning at Q1 of 2027.
