The proposed takeover of Warner Bros. Discovery by Netflix remains pending. The Wall Street Journal initially revealed that the United States Department of Justice has initiated an inquiry into Netflix's planned acquisition, with a particular focus on potential anticompetitive actions by the streaming leader. A civil subpoena reviewed by WSJ indicates that the Justice Department is examining any 'exclusionary conduct on the part of Netflix that would reasonably appear capable of entrenching market or monopoly power.'
Netflix disclosed its intention to buy Warner Bros. Discovery last December for $82.7 billion, anticipating completion within 12 to 18 months pending necessary regulatory clearances. The Department of Justice possesses authority to halt the merger, and this scrutiny may signal the regulator's strategy, potentially centered on demonstrating that Netflix disadvantaged its rivals unfairly.
Steven Sunshine, Netflix's lawyer, informed WSJ that the inquiry represents routine procedure, adding, 'we have not been given any notice or seen any other sign that the DOJ is conducting a separate monopolization investigation.' In a company release, Netflix noted it is 'constructively engaging with the Department of Justice as part of the standard review of our proposed acquisition of Warner Bros.' WSJ reports the probe is in preliminary phases and might extend up to one year.