‘This Deal Looks Like an Anti-Monopoly Nightmare’ — Netflix’s $82.5 Billion Warner Bros. Buyout Risks Job Losses and Higher Subscription Prices, Senator Elizabeth Warren Warns
In a significant move that has sparked controversy in the media landscape, Senator Elizabeth Warren has urged the Justice Department to investigate Netflix’s ambitious $82.7 billion acquisition of Warner Bros. This merger, announced earlier today, has been branded by Warren as an “anti-monopoly nightmare,” raising concerns over its potential impact on job security, subscription prices, and consumer choice. The senator’s statement highlights the risks associated with consolidating such a large portion of the streaming market under one corporate umbrella, suggesting that a Netflix-owned Warner Bros. could dominate nearly half of the industry, leading to fewer options and increased costs for viewers. Warren emphasized the necessity for the Justice Department to enforce anti-monopoly laws “fairly and transparently,” as the deal could pose serious threats to both American workers and consumers.
Warren’s concerns have found resonance across the political spectrum, with Representative Pramila Jayapal, co-chair of the House Monopoly Busters Caucus, echoing her sentiments. Jayapal cautioned that the merger could lead to higher prices, more advertisements, and a reduction in creative control for artists, while also potentially resulting in lower wages for workers in the industry. The criticism extends beyond the Democratic Party, as Republican Senator Mike Lee, who chairs the Senate antitrust committee, has also raised alarms about the implications of such a merger, suggesting it warrants scrutiny from antitrust regulators globally. Meanwhile, Netflix CEO Ted Sarandos has expressed confidence in the deal’s regulatory approval, framing it as beneficial for consumers, innovation, and creators alike. He reassured stakeholders that Warner Bros. would continue to operate independently until the regulatory review is complete, although the approval process could be lengthy, reminiscent of the drawn-out scrutiny faced by Microsoft’s acquisition of Activision Blizzard.
As the media landscape continues to evolve, the potential merger between Netflix and Warner Bros. raises critical questions about market concentration and its ramifications for both consumers and creators. The ongoing debate reflects broader concerns about the power dynamics within the media industry, emphasizing the need for vigilant regulatory oversight to protect against monopolistic practices. With both supporters and detractors weighing in, the outcome of this deal could set a precedent for future mergers in the ever-competitive streaming sector.
Democrat Senator Elizabeth Warren has called on the Justice Department to examine
Netflix’s $82.7 billion buyout of Warner Bros.
, and branded the deal as “like an anti-monopoly nightmare.”
The prominent politician is among the first to speak out against the proposed deal, which
Netflix
and Warner Bros. announced early this morning, and said would provide better value to subscribers and shareholders.
In contrast, Warren has highlighted the risks of the potential merger — which, if approved, will be finalized in the second half of 2026. In a statement, Warren said a Netflix-owned Warner Bros. risked job losses and higher subscription prices, and said that the Justice Department must now enforce the country’s anti-monopoly laws “fairly and transparently.”
“This deal looks like an anti-monopoly nightmare,” the senator said in a statement via
Reuters
. “A Netflix-Warner Bros. would create one massive media giant with control of close to half of the streaming market — threatening to force Americans into higher subscription prices and fewer choices over what and how they watch, while putting American workers at risk.”
Warren’s comments were echoed by US Representative Pramila Jayapal, co-chair of the House Monopoly Busters Caucus, who also labelled the deal as a “nightmare.”
“It would mean more price hikes, ads, & cookie cutter content, less creative control for artists, and lower pay for workers,” Jayapal stated. “The media industry is already controlled by a few corporations with too much power to censor free speech. The gov’t must step in.”
In the past few hours, one report has
claimed Netflix is particularly keen to obtain Warner Bros.’ vast content library as the streamer ramps up its potential to offer AI-generation tools and content
in the future, just weeks after Disney boss Bob Iger confirmed it would
imminently begin rolling out AI content and capabilities via Disney+
.
Criticism of Netflix’s move has also come from both sides of the aisle, as Republican Senator Mike Lee, who also leads the Senate antitrust committee, suggested earlier this week that the idea of the streaming service owning Warner Bros. “should send alarm to antitrust enforcers around the world.”
In an investor call earlier today, attended by IGN, Netflix CEO Ted Sarandos acknowledged the upcoming regulatory process that will take place the deal before it is finally approved, but struck a confident tone when asked about its chances for success. “We’re highly confident in the regulatory process. This deal is pro-consumer, pro-innovation, pro-worker, it’s pro-creator, it’s pro-growth,” Sarandos said.
As part of the same call, Sarandos said
Netflix would continue to release Warner Bros. movies in theaters for now
, though expected theatrical release windows to shorten over time to become “more user friendly.”
For now, Netflix and Warner Bros. will continue to be run independently until the deal is scrutinized next year. It may end up being a lengthy process — Microsoft’s $68.7 billion buyout of Activision Blizzard got snagged for months due to objections by the Federal Trade Commission in the US, as well as the European Commission abroad, before it was ultimately passed.
“Under Donald Trump, the antitrust review process has also become a cesspool of political favoritism and corruption,” Warren concluded today. “The Justice Department must enforce our nation’s anti-monopoly laws fairly and transparently — not use the Warner Bros. deal review to invite influence-peddling and bribery.”
Tom Phillips is IGN’s News Editor. You can reach Tom at tom_phillips@ign.com or find him on Bluesky
@tomphillipseg.bsky.social
