The proposed acquisition of Warner Bros. Discovery's studios and streaming division by Netflix, a deal worth $72 billion, has been labeled an antitrust "nightmare" by Sen. Elizabeth Warren.
The senator's comments, made on Friday, add to the growing bipartisan criticism of the entertainment industry's mega-deal, which she argues could negatively impact both workers and consumers.
"This deal looks like an anti-monopoly nightmare," Warren stated, as reported by The New York Post. The Massachusetts Democrat, known for her strong support of antitrust enforcement, further elaborated, "A Netflix-Warner Bros. 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."
Netflix, on the other hand, has positioned the deal as a job creator and a means to provide its 300 million subscribers with "more bang for their buck." The company argues that the acquisition will allow for more content at a time when the administration is prioritizing affordability and lower prices for consumers. However, this proposition has faced criticism from Republicans even before the deal's formal announcement, and began to draw pushback from Democrats on Friday.
The proposed acquisition has also raised eyebrows among Republicans in Congress, who have warned that Netflix's absorption of HBO Max and Warner Bros.' content rights could limit consumer choice and give the company an unacceptably large share of the streaming market. Senator Mike Lee, a Republican from Utah who leads the Senate antitrust committee, expressed concern on Wednesday, stating that a Netflix purchase of Warner Bros. Discovery's streaming assets "should send alarm to antitrust enforcers around the world."
"Netflix built a great service, but increasing Netflixs dominance this way would mean the end of the Golden Age of streaming for content creators and consumers," Lee wrote on social media site X.
The deal, due to its sheer size, is expected to undergo significant antitrust review by the Justice Department. The addition of HBO Max's 128 million subscribers to Netflix's existing 300 million would create a formidable player in the streaming market. However, Netflix could argue that shifting media habits and the popularity of Alphabet's YouTube as a TV viewing platform should be taken into consideration.
Despite the controversy, Netflix CEO Ted Sarandos remains optimistic about the deal's prospects. "Were highly confident in the regulatory process. This deal is pro-consumer, pro-innovation, pro-worker, its pro-creator, its pro-growth," Sarandos said after the deal was announced.
The DOJ antitrust unit, led by Gail Slater, a former executive at Fox Corp. and Roku, will likely play a crucial role in the deal's review. Slater, who was later an economic advisor to Vice President JD Vance, has frequently spoken about using antitrust to protect American consumers, workers, and innovation.
The proposed acquisition's fate may also be influenced by President Donald Trump's history of involvement in major media mergers. He previously lobbied his Department of Justice to halt AT&Ts $85 billion purchase of Time-Warner, citing concerns about media concentration and his dissatisfaction with Time-Warners CNN cable network. Despite his efforts, AT&T ultimately won in court in 2018 and 2019.
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