On December 5, 2025, Netflix announced its agreement to acquire Warner Bros. Discovery’s
film studio and streaming operations. Under the arrangement, WBD’s “Global Networks” (cable-
TV brands and other linear networks) would spin off into a separate publicly traded company
before closing. The acquisition promises to unite Netflix’s global reach and distribution
infrastructure with Warner’s vast library of films, prestige TV, and blockbuster intellectual
property (IP) — from legacy cinematic and television titles to marquee franchises like those
under the DC Comics or HBO banners.
The significance of the merger rests not in its commercial appeal but in what such consolidation
could mean for competition, consumers, and the broader structure of the entertainment industry.
A central legal concern stems from the fact that combining Netflix’s subscriber base with HBO
Max’s and Warner’s studio assets could dramatically amplify market concentration, with some
estimating the merged entity’s U.S. streaming market share could rise above 30–40%. Under
current U.S. antitrust guidelines, that level of market share raises a “presumption of illegality.”
Regulators will assess whether the merger would substantially lessen competition or tend toward
monopolization. Because Netflix and WBD are not only streaming platforms but also content
producers, the merger constitutes both horizontal (streamer vs. streamer) and vertical (content
producer + distributor) integration — a combination that often raises even sharper antitrust flags.
One key concern: with control over so much content, Netflix could withhold popular
programming from competing streamers (or demand high licensing fees) — effectively
foreclosing rivals, and reducing diversity in content while consolidating power over what gets
produced and distributed.
Regulators will also weigh broader impacts such as content diversity, creative opportunity, price
effects, and labor market consequences. For example, critics warn that the merger could reduce
incentives for producing a broad slate of films, undercut theatrical releases, or lead to job loss for
creative and technical workers across the industry. From the consumer side, the depleted
competition could lead to fewer choices, less diversity in programming, and upward pressure on
subscription prices over time.
Given the scale and scope of concentration, the merger will almost certainly draw regulatory
scrutiny. Under U.S. antitrust law, the DOJ (and possibly FTC) will likely launch an in-depth
review, focusing on whether the merger would substantially lessen competition or enable abuse
of market dominance.
Regulators may demand remedies before approval — for example, divestitures of certain assets
(e.g., requiring that major franchises or libraries remain licensed to rival platforms), or
behavioral conditions (non-exclusive licensing or commitments to maintain theatrical release
windows).
There’s also the risk the deal will be blocked entirely. Given historical precedents of blocked
mergers in media and mounting opposition from lawmakers, creators, and public interest groups,
The path to clearance is far from certain.
Beyond this single deal, the outcome will likely set a precedent for how regulators treat future
media consolidations in the age of streaming. If the merger is approved, it could open the door to
further vertical and horizontal integration across content, distribution, and technology platforms
— reshaping the economic and creative structure of Hollywood.
Conversely, if blocked, it may reinvigorate efforts to rethink and tighten antitrust guidelines or
media-ownership rules in the streaming context. Either way, observers suggest this merger could
become a landmark case defining the legal limits of media consolidation in the 21st century.
In short, the proposed Netflix–WBD deal raises serious legal red flags under antitrust law, with
potentially far-reaching consequences for competition, creative freedom, consumers, and the
future shape of the entertainment industry. The coming months will be critical as regulators,
creators, lawmakers, and the public weigh its risks and rewards.
by: Thomas Joa, Attorney, BridgehouseLaw, Charlotte
image: iStock
