"Netflix Inc. has won the heated takeover battle for Warner Bros. Discovery Inc. Now it must convince global antitrust regulators that the deal won't give it an illegal advantage in the streaming market. The $72 billion tie-up joins the world's dominant paid streaming service with one of Hollywood's most iconic movie studios. It would reshape the market for online video content by combining the No. 1 streaming player with the No. 4 service HBO Max and its blockbuster hits such as Game Of Thrones, Friends,"
"That could raise red flags for global antitrust regulators over concerns that Netflix would have too much control over the streaming market. The company faces a lengthy Justice Department review and a possible US lawsuit seeking to block the deal if it doesn't adopt some remedies to get it cleared, analysts said. "Netflix will have an uphill climb unless it agrees to divest HBO Max as well as additional behavioral commitments - particularly on licensing content," said Bloomberg Intelligence analyst Jennifer Rie."
Netflix has agreed to acquire Warner Bros. Discovery in a $72 billion transaction that pairs the world's largest paid streaming service with HBO Max and a major Hollywood studio. The merger would combine Netflix's leading platform with HBO Max's premium content, including Game of Thrones and Friends, reshaping the online video market. Regulators could view the combined market share as creating excessive market power, prompting a lengthy Justice Department review and a potential lawsuit unless remedies are adopted. Analysts say Netflix may need to divest HBO Max and commit to licensing and behavioral remedies to alleviate antitrust concerns.
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