Netflix's proposed $72 billion acquisition of Warner Bros. Discovery's studio and streaming assets faces significant legal and antitrust challenges. The transaction excludes Warner Bros. Discovery's linear networks. This deal represents a direct stress test for modern antitrust enforcement in the streaming era.
The transaction is structured specifically to navigate regulatory scrutiny. If approved, the merger fundamentally alters the media industry landscape.
The entertainment world closely watches the unfolding legal process. The merger has already sparked considerable anxiety across Hollywood, particularly among movie theater owners (exhibitors).
Exhibitors fear Netflix's streaming-first model could lead to the disappearance of robust theatrical releases for Warner Bros. films. This shift potentially impacts up to 25% of the annual domestic box office.