Netflix Bid for Warner Bros. Raises Antitrust Concerns, GOP Rep. Says

4 2 minutes read

Republican Representative Expresses Concerns Over Netflix’s Potential Acquisition of Warner Bros. Discovery

A well-known Republican U.S. representative, Rep. Darrell Issa (R-California), has raised red flags about the ongoing bidding war for Warner Bros. Discovery. In a letter dated Nov. 13, Issa warned that Netflix’s potential acquisition of WBD’s HBO Max and entertainment studios could lead to antitrust issues that may harm consumers. The letter, reviewed by Variety, was addressed to U.S. Attorney General Pam Bondi, FTC chairman Andrew Ferguson, and Gail Slater, assistant attorney general for the Justice Department’s antitrust division.

Last month, Warner Bros. Discovery announced that it was considering acquisition offers from various parties and had initiated a review process. Bids have been submitted by David Ellison’s Paramount Skydance for the entire WBD entity, while Netflix and Comcast have expressed interest in acquiring the company’s streaming and studio operations. The deadline for “nonbinding first-round bids” is set for Nov. 20, with WBD aiming to conclude the process by the end of the year, as reported by the Wall Street Journal.

In his letter, Issa expressed concerns about Netflix’s dominance in the streaming market and the potential impact of its acquisition of Warner Bros. Discovery. He highlighted the risk of reducing competition and harming consumers if Netflix were to absorb a major competitor. Issa pointed out that the combined entity’s market share would likely exceed 30 percent, a level that raises antitrust concerns under existing laws.

Netflix, with over 300 million global subscribers and a vast content library, holds significant market power in the streaming industry. The addition of HBO Max’s subscribers and Warner Bros.’ content rights could further strengthen Netflix’s position, potentially limiting competition and innovation in the market.

Moreover, Issa raised concerns about the impact of consolidation on the production of new content and major theatrical releases. He cited Netflix’s dismissive remarks about movie theaters as outdated and warned that such consolidation could undermine opportunities for industry professionals both in front of and behind the camera.

In conclusion, Issa called on the authorities to protect competitive markets, promote consumer choice, and safeguard American jobs in the entertainment industry. He commended the Administration’s efforts to maintain regulatory common sense and urged them to continue supporting a critical American industry.

Variety has reached out to Netflix and Warner Bros. Discovery for comments on the matter.