A coalition of eleven Republican state attorneys general has formally requested a thorough federal antitrust review of Netflix’s proposed $83 billion acquisition of Warner Bros. Discovery’s (WBD) streaming and studio assets, as events increasingly point toward Paramount Global and David Ellison prevailing in their $108 billion hostile takeover bid for WBD.
In a letter addressed to U.S. Attorney General Pam Bondi, the attorneys general expressed concerns that the Netflix-WBD merger would “likely result in undue market concentration that stifles competition and therefore creates higher prices, lower reliability, and less innovation for one of America’s major industries.” They urged the Department of Justice to conduct a rigorous review under the Clayton Act.
Montana Attorney General Austin Knudsen, in a separate press release, echoed these concerns, stating that such a large consolidation would place “an unprecedented amount of content, distribution power, and market influence into the hands of a single corporation.” He warned that industry dominance often leads to price increases, reduced consumer choice, and stifled innovation.
The letter was signed by the attorneys general of Alabama, Alaska, Iowa, Kansas, Nebraska, North Dakota, South Carolina, Tennessee, Utah, and West Virginia.
The increased scrutiny of Netflix’s bid comes days after the U.S. Department of Justice initiated a formal antitrust probe into the streaming giant, co-led by Ted Sarandos and Greg Peters. Simultaneously, Paramount CEO David Ellison was a guest of GOP lawmakers at President Donald Trump’s State of the Union address, a move that has drawn attention amid the ongoing battle for WBD.
While Sarandos has publicly maintained that Netflix does not hold a monopoly and that its primary competitor is YouTube, not other streamers, the political landscape surrounding the deal is becoming increasingly complex. Trump’s allies have largely refrained from criticizing a potential Paramount acquisition of WBD, a contrast to the vocal opposition directed at Netflix.
An offshoot of the Heritage Foundation, through its Project Netflix initiative, is actively working to derail the deal, alleging that Netflix is promoting a left-leaning social agenda through its content. Ellison was a guest of Senator Lindsey Graham (R-SC) at the State of the Union address.
Democrats have also voiced concerns regarding both the Netflix-WBD merger and a potential Paramount transaction. California Attorney General Rob Bonta has pledged a “full and robust review” of either deal. However, Washington-based Democrats have primarily focused their investigative efforts on Paramount and Ellison, with a group of senators recently requesting that Ellison preserve records and provide information regarding his contacts with the administration.
The scrutiny of Ellison’s political engagements, including his attendance at the State of the Union, stands in contrast to his previous statements last year indicating his intention to avoid “politicizing” the company.
Paramount and Netflix both declined to comment on the attorneys general’s letter. Paramount is scheduled to report its fourth-quarter earnings after market close on Wednesday, while Warner Bros. Discovery will release its financials on Thursday. Investor calls following both announcements are expected to provide further insight into the potential outcomes of the ongoing M&A process.
