Netflix Investors Breathe Sigh of Relief: $83 Billion WBD Deal In DOJ Crosshairs

The Justice Department has launched a formal antitrust investigation into Netflix’s (NFLX) proposed $83 billion acquisition of Warner Bros. Discovery’s (WBD) core assets, including its film and television studios, HBO, and HBO Max streaming service. Regulators are closely examining whether the transaction would substantially lessen competition in the streaming and entertainment industries or allow Netflix to exert undue influence over independent creators through its dominant negotiating power.

Citing potential breaches of Section 7 of the Clayton Act and Section 2 of the Sherman Act, the probe goes beyond standard merger review to assess broader monopolization risks. The deal—already unpopular with investors—has driven NFLX shares sharply lower, and the antitrust scrutiny now stands as a potential wedge that could knock Netflix out of contention entirely, especially as rival Paramount Skydance (PSKY) just cleared a DOJ review of its own.