Netflix-Warner Bros. deal: Regulatory questions emerge

The Netflix and Warner Bros. Discovery deal came together quickly — but its path to regulatory approval may not be so speedy.

Netflix stunned the media industry on Friday when it announced its proposed $72 billion deal to acquire the iconic Warner Bros. film studio and streaming service HBO Max. The combination brings together two of the most popular streaming platforms in the business. Netflix reported 300 million global subscribers as of late 2024, the last time it reported the metric. HBO Max had 128 million customers as of Sept. 30.

Netflix currently claims 46% of mobile app monthly active users in global streaming, according to data from market intelligence firm Sensor Tower. Combined with HBO Max, that share would rise to 56%, it found.

“This deal cements Netflix’s position as the premier streaming service for original content,” according to a research note from analysts at William Blair on Friday.

The size of the deal makes it ripe for scrutiny, from both industry insiders and U.S. lawmakers.

The Trump administration is viewing the merger with “heavy skepticism,” CNBC reported Friday, and Sen. Elizabeth Warren has already called for an antitrust review.

“This deal looks like an anti-monopoly nightmare. A Netflix-Warner Bros. would create one massive media giant with control of close to half of the streaming market — threatening to force Americans into higher subscription prices and fewer choices over what and how they watch, while putting American workers at risk,” Warren, a Democrat from Massachusetts, said in a statement.

The merger would also give Netflix control over the famed Warner Bros. film studio, further consolidating the cinematic space and raising concerns that the number or typical windowing of popular releases could shrink.

It’s typical in the days and weeks following a deal announcement of this scale for interest groups, politicians and corporate competitors to call foul on antitrust grounds.

The Department of Justice is most likely to review the deal, as it has other media mergers in the past, and it could take some time. DOJ reviews can take anywhere from months to more than a year.

Netflix said Friday it expects the transaction to close in 12 to 18 months, after Warner Bros. Discovery spins out its portfolio of cable networks into Discovery Global.