What concerns is the DOJ examining regarding the Netflix-Warner Bros. deal?

The DOJ is examining whether Netflix used exclusionary conduct that could entrench market or monopoly power, and how past mergers have affected competition for creative talent.

Are other companies also interested in acquiring Warner Bros. studios?

Yes, Paramount also made a proposed acquisition bid for Warner Bros., but it was unanimously rejected by the Warner Bros. board as inadequate.

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DOJ Probes Netflix Warner Bros. Deal for Antitrust

Q: Is the U.S. Department of Justice investigating Netflix's acquisition of Warner Bros.?

Yes, the U.S. Department of Justice is investigating Netflix's proposed $82.7 billion acquisition of Warner Bros. Studios and its streaming service for anti-competitive tactics.

7 Feb

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Summary

U.S. DOJ investigates Netflix's proposed $82.7B Warner Bros acquisition.
Subpoena asks about exclusionary conduct and monopoly power.
Paramount's bid for Warner Bros. was also reviewed and rejected.

DOJ Probes Netflix Warner Bros. Deal for Antitrust

The U.S. Department of Justice has initiated an investigation into Netflix's proposed $82.7 billion acquisition of Warner Bros. Studios and its streaming service. The probe is examining whether Netflix utilized anti-competitive strategies as part of the deal.

Evidence of this investigation surfaced via a civil subpoena issued to another entertainment company. The subpoena sought details on any "exclusionary conduct" by Netflix that might establish or maintain monopoly power. The DOJ is also reviewing Paramount's rejected bid for Warner Bros., which was deemed "inadequate" by the Warner Bros. board.

Netflix is reportedly engaging constructively with the DOJ, with a company spokesperson stating awareness only of a standard merger review process. Lawyers for Netflix believe the department is conducting a routine review, not a separate monopolization investigation.