Netflix's $72 Billion Acquisition of Warner Bros Raises Antitrust Issues

Post by : Bianca Suleiman

In a transformative shift that could redefine the entertainment industry, Netflix is poised to acquire Warner Brothers Discovery for a colossal $72 billion. This acquisition promises to integrate legendary franchises such as Harry Potter, Game of Thrones, The Matrix, Lord of the Rings, and Looney Tunes within Netflix's offerings, potentially establishing an unparalleled media powerhouse.

The announcement has attracted the scrutiny of US regulators and industry experts. Former President Donald Trump commented on Netflix’s “already substantial market share,” cautioning that the merger might escalate competitive concerns if granted approval.

Since its inception in 1997 as a DVD rental service, Netflix has transformed into the leading subscription streaming platform globally. The acquisition of Warner Bros would fortify its dominance, enriching Netflix's library with both timeless classics and promising future blockbusters.

Although Netflix presents this acquisition as a strategic move for sustained leadership, it has ignited apprehensions regarding market competition. The Writers Guild of America has raised alarms, arguing that merging the largest streaming service with one of its principal rivals could jeopardize jobs, suppress wages, and diminish content diversity.

The merger is pending approval from the US Justice Department’s antitrust division, which is evaluating whether the combined entity's market presence is too significant. Netflix CEO Ted Sarandos noted that while the deal might catch investors off-guard, it is crucial for positioning the company for future success.

As the deal progresses towards finalization—anticipated after Warner Bros reorganizes its operations in late 2026—the entertainment sector is on high alert. Analysts predict that if the merger is approved, Netflix could gain unprecedented control over global streaming, dramatically altering content creation, distribution, and consumer choice for the foreseeable future.