Netflix may have won the bidding war for Warner Bros. Discovery, but the deal is far from guaranteed.
Exclusive talks don’t mean the deal will be finalized; they could always collapse.
The talk also don’t equal regulatory approval, and there are already major signs Netflix faces a long, difficult path, reportedly years to come.
Paramount, despite losing this round, shouldn’t be counted out — and Netflix doesn’t have President Trump at its side.
Netflix Faces Heavy Regulatory Scrutiny
Reports note that a Netflix–WBD merger could face years of antitrust review. This would be one of the largest entertainment acquisitions ever attempted.
Netflix absorbing Warner Bros. Studios, HBO Max, DC, and major IP libraries raises immediate red flags for regulators who have already taken a harder stance on media consolidation.
A-List Filmmakers Already Oppose the Deal
Variety previously revealed that top filmmakers sent a private letter to Congress urging them to block any Netflix–WBD merger.
Their warning: the deal would give Netflix disproportionate control over theatrical releases and limit industry opportunities.
Hollywood itself is pushing back, which adds pressure lawmakers pay close attention to.
DOJ Antitrust Pushback Expected
The Department of Justice is likely to be the biggest obstacle.
The DOJ is expected to scrutinize the deal aggressively. Combining Netflix with Warner Bros. creates a dominant force in content production and distribution. Prior, smaller mergers have already been challenged under the current enforcement environment.
Simply put, Netflix enters a regulatory battlefield.
Rep. Darrell Issa Has Warned of Harm to Competition
Rep. Darrell Issa has already notified federal regulators that a Netflix–WBD merger could hurt consumers, reduce theatrical output, and limit competition across the industry.
His letter puts political pressure on the DOJ and FTC before the deal even begins formal review.
California AG Rob Bonta Opposes WBD Consolidation
California Attorney General Rob Bonta has previously stated he opposes any consolidation involving Warner Bros. Discovery, arguing it harms consumers and competition.
California’s resistance matters. It’s the center of the entertainment industry, and state-level pushback can complicate or delay federal approval.
Political Tailwinds Still Favor Paramount
Paramount may have lost the bidding, but it’s still positioned well for a rebound:
- Donald Trump has backed the Paramount–Skydance efforts (the wild card in all this)
- Paramount has already navigated antitrust approval during the Skydance merger
- Paramount argues it can close a deal cleanly and faster than Netflix
If regulators stall or reject Netflix, Paramount becomes the most viable alternative.
Update: The New York Post reports David Ellison traveled to Washington, D.C. to lobby Trump officials and lawmakers against a Netflix–WBD merger, arguing it should be blocked on antitrust grounds. Ellison’s team, led by former DOJ antitrust chief Makan Delrahim, warned Netflix’s proposal creates a dominant streaming force with 400 million combined subscribers.
The Post also says WBD CEO David Zaslav is warming to Netflix’s bid and may be willing to fight the Trump administration in court, prompting Paramount Skydance to escalate its push and send multiple letters urging the WBD board to reject Netflix due to regulatory risk.
Netflix has brought in veteran telecom lawyer Steve Sunshine to argue that buying WBD wouldn’t give the company monopoly power, pointing to rising competition from YouTube and social platforms.
It’s Not Over Until It’s Closed: Hostile Takeover In Sight
Netflix may have won exclusive talks, but the road ahead is long. With Hollywood opposition, DOJ scrutiny, congressional warnings, state-level pushback, and political advantages still favoring Paramount, the outcome isn’t settled.
Paramount is still very much alive in this fight. Numerous reports suggest Paramount may initiate a hostile takeover by taking its bid directly to WBD shareholders instead of David Zaslav and the board.
