DOJ Opens Antitrust Probe into Netflix’s Bid for Warner Bros. Discovery

The U.S. Department of Justice has opened an antitrust query into Netflix’s proposed acquisition of Warner Bros. Discovery, a routine but significant step...

The Justice Department said it is investigating whether the proposed transaction would substantially lessen competition or create a monopoly, citing potential violations of... the Clayton Act and... the Sherman Act.

Netflix said it is prepared to cooperate with regulators and rejected suggestions that the deal would create monopoly power.

“Netflix operates in an extremely competitive market. Any claim that it is a monopolist, or seeking to monopolize, is unfounded,” Netflix’s Chief Legal Officer told TheWrap.

The Justice Department’s investigation…includes scrutiny of the streaming giant’s behavior and whether it wields anticompetitive leverage over creators.

The language in the demand…is the clearest sign yet that the Trump administration is going beyond a standard deal review as it investigates the merger.

“Netflix operates in an extremely competitive market. Any claim that it is a monopolist, or seeking to monopolize, is unfounded,” Netflix’s legal chief said.

Monopoly cases can require market concentration of more than 50%, a number that exceeds Netflix’s share with or without Warner Bros.

The Justice Department’s investigation of Netflix Inc.’s proposed $72 billion takeover of Warner Bros. Discovery Inc. includes scrutiny of whether the streaming giant’s behavior wields anticompetitive leverage over creators.

DOJ probes Netflix’s power over filmmakers in Warner deal review.

The deal... is expected to raise antitrust concerns... that the purchase would greatly increase the buying power of Netflix.

Representatives for the company were unable to provide details to Al Jazeera on how [more jobs and opportunities] would happen.

‘I could not think of a more effective way to reduce competition in Hollywood than selling WBD to Netflix,’ said former Warner Media CEO Jason Kilar.

The deal poses an ‘unprecedented threat’ to movie theatres worldwide, said Cinema United, a global exhibition trade association.

Warner Bros. Discovery is briefly reopening takeover talks with Skydance-owned Paramount to hear the company’s ‘best and final’ offer.

Warner’s board is still recommending shareholders support its proposed merger with Netflix, with a special meeting set for March 20.

Paramount wants to acquire Warner’s entire company… and went straight to shareholders with an all-cash, $77.9 billion hostile offer.

The prospect of a Warner sale to either company has raised tremendous antitrust concerns from lawmakers worldwide, prompting DOJ review.

A chorus of antitrust experts has already been calling for a fundamental rethinking of the prevailing laissez-faire approach to vertical mergers.

The most important aspect of Judge Leon's opinion is that it essentially embraces the Bork approach, which rested on a few premises: that markets are inherently competitive...

It's not clear that logic holds in a case like AT&T's merger with Time Warner. Not only does AT&T occupy a dominant position in a highly concentrated telecommunications market...

No matter the outcome if the decision is appealed, the Justice Department 'is going to have to update the vertical merger guidelines,' said Steven C. Salop.

The news that Netflix has agreed to buy Warner Bros in an $83bn deal has led to backlash among figures in and out of the entertainment industry.

Elizabeth Warren... called it “an anti-monopoly nightmare”... [creating] one massive media giant... threatening to force Americans into higher subscription prices and fewer choices.

The Writers Guild of America...: “The world’s largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent... This merger must be blocked.”

Ted Sarandos... said he is “highly confident” that the merger will go through... and called the deal “pro-consumer, pro-innovation, pro-worker, pro-creator” on an investor call earlier this week.

This, of course, plays to one of Donald Trump’s favorite narratives, that he is somehow an aggrieved victim of political persecution.

Right-wing influencer and conspiracy theorist Laura Loomer was quick to jump on the appearance and accused Rice of “threatening half the country...

Trump pounced on Loomer’s post, adding that “Netflix should fire racist, Trump Deranged Susan Rice, IMMEDIATELY, or pay the consequences.”

While his post didn’t mention any specific consequences, it’s not a stretch to assume he’s threatening to step in and block Netflix’s purchase of Warner Bros.

Netflix Officially Under DOJ Antitrust Scrutiny "To Create A Monopoly" With Warner Bros Merger; Feds Want Details From Producers & Filmmakers On Streamer's Leverage

"To Create A Monopoly" suggests the Netflix–Warner Bros merger could significantly reduce competition in streaming.

Feds want details from producers and filmmakers on Netflix’s leverage in the marketplace.

Warner Bros. Discovery has announced March 20 as the date for the meeting of shareholders to vote on the proposed $83 billion deal with Netflix.

The studio's board — after rebuffing multiple overtures from Paramount Skydance — will also engage in discussions with the Ellison-led company.

Talks aim to “seek clarity” on Paramount’s “best and final offer” in its hostile takeover attempt.