US Justice Department probes potential Warner Bros-Netflix deal

The US Justice Department has contacted major theater chains to discuss the potential effects of Warner Bros. Discovery’s planned sale, focusing on how it might influence film releases and consumer options.

The inquiry comes amid ongoing negotiations, with Warner Bros. considering a sale of its studio and HBO Max streaming assets to Netflix, while also exploring a possible acquisition by Paramount Skydance.

Industry figures, including filmmakers and theater executives, have expressed concerns about the impact on cinema competition and film distribution.

Netflix’s CEO has pledged to keep Warner Bros. films in theaters for a 45-day window, but some theater operators remain cautious about the company’s long-term commitments.

Trade groups representing US theater chains have warned that a deal with Netflix could be detrimental to the industry, while some executives favor a partnership with Paramount due to its longstanding relationships with cinemas.

The outcome of the sale remains uncertain.

🔗 Source: Bloomberg

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The Justice Department’s merger review faces leadership turmoil

The justice department official running the review of Warner Bros. Discovery’s planned sale, assistant attorney general for antitrust Gail Slater, was removed from the role 1.
Reports tied her exit to clashes with attorney general Pam Bondi, while lawmakers including senator Elizabeth Warren raised corruption accusations 1.
Earlier, two Democratic senators urged Bondi to step aside from any review of a potential Netflix deal for Warner Bros. Discovery’s studio and HBO Max streaming assets, citing her past work for Ballard Partners, a lobbying firm hired by Netflix and rival bidder Paramount Skydance 1.

Netflix’s 45-day theatrical pledge draws doubt

Netflix offered a 45-day theatrical window for Warner Bros. films, a change from co-CEO Ted Sarandos’s earlier remark that the communal moviegoing experience was “an outmoded idea” 2.
Theater executives question the pledge and cite Disney’s acquisition of Fox, where Disney gave assurances then later cut Fox’s film slate 3.
The proposal puts pressure on Netflix to prove it can run a legacy studio, while one movie-theater exhibitor said, “They will say whatever they need to say to get the deal done” 3.