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Rep. Darrell Issa, R-Calif., is objecting to a potential deal between Warner Bros. Discovery and streaming giant Netflix, suggesting a deal would raise antitrust concerns and harm consumers.
Warner Bros. Discovery, which counts CNN and HBO among its assets, announced last month it is for sale amid interest from several suitors. Paramount Skydance has long been rumored to have a strong interest in buying the company, but recent reports have indicated Netflix is also a potential fit.
Issa sent a letter Thursday to Attorney General Pam Bondi, Federal Trade Commission Chair Andrew Ferguson and Justice Department Antitrust Division Chief Gail Slater, detailing concerns with the potential deal involving Netflix.
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“I am writing regarding recent and continuing reports that Netflix is seeking to acquire Warner Brothers (Bros.) Discovery’s studio and streaming properties. As you are aware, Netflix is already the dominant streaming platform in the United States and permitting it to absorb a major competitor raises antitrust concerns that could result in harm to consumers,” Issa wrote.
“With more than 300 million global subscribers and a vast content library, Netflix currently wields unequaled market power,” Issa continued. “Adding both HBO Max’s subscribers and Warner Bros.’ premier content rights would further enhance this position, reportedly pushing the combined entity above a 30 percent share of the streaming market: a threshold traditionally viewed as presumptively problematic under antitrust law.”
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Issa went to bat for the entertainment industry that is prominent in California.
“Of further concern is that this consolidation would also diminish incentives to produce new content and major theatrical releases — evident by Netflix’s own statements dismissing movie theaters as ‘outdated’ — which could undermine opportunities for the full range of industry professionals both in front and behind the camera,” Issa wrote.
“I appreciate the Administration’s determined efforts to promote competitive markets and establish a record of regulatory common sense,” he wrote to conclude the letter. “I urge you to continue to protect a critical American industry, enhance consumer choice, and safeguard vital American jobs.”
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Warner Bros. Discovery has noted there is “no deadline or definitive timetable set for completion of the strategic alternatives review process,” and the company “does not intend to make any further announcements regarding the review of strategic alternatives unless and until the Board approves a specific transaction or otherwise determines further disclosure is appropriate or necessary.”
Netflix did not immediately respond to a request for comment from Fox News Digital. Warner Bros. Discovery declined comment.
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