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DOJ Probes Netflix Warner Bros. Deal
22 Feb
Summary
- DOJ antitrust probe targets Netflix's $108 billion bid for WBD.
- Investigation focuses on potential impact on market competition.
- Netflix argues its success stems from innovation, not monopoly.
The Department of Justice (DOJ) has initiated an antitrust investigation into Netflix's potential $108 billion acquisition of Warner Bros. Discovery (WBD). The probe, launched around February 3rd, 2026, seeks to determine if the proposed deal violates antitrust laws by potentially reducing competition or establishing a monopoly.
Netflix, through its Chief Legal Officer David Hyman, has asserted that it operates in a highly competitive market and that claims of monopolistic intent are unfounded. The company attributes its success to innovation and consumer benefit, pledging full cooperation with regulatory inquiries.
This civil investigative demand was issued on February 20th, 2026, with recipients required to provide documents and sworn responses by March 23rd, 2026. The DOJ's investigation is unfolding amidst WBD shareholder meetings to vote on the acquisition, adding significant pressure to the transaction.
Netflix has previously denied facing a Sherman Act probe regarding its pursuit of WBD and its disputes with Paramount. Despite the DOJ's scrutiny, Netflix executives reportedly view the investigation as a routine part of the regulatory process, anticipating such inquiries under the DOJ's 2023 Merger Guidelines initiative.
Co-CEO Ted Sarandos has consistently stated that even with HBO Max's subscriber base, Netflix would not approach monopoly status. The unfolding realpolitik of this merger battle intensifies as the DOJ's civil investigative demand adds a new dimension to the already complex negotiations.
