{"id":462945,"date":"2025-12-21T21:13:24","date_gmt":"2025-12-21T21:13:24","guid":{"rendered":"https:\/\/www.europesays.com\/us\/462945\/"},"modified":"2025-12-21T21:13:24","modified_gmt":"2025-12-21T21:13:24","slug":"netflix-and-paramount-are-fighting-over-warner-bros-discovery-heres-the-regulatory-outlook","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/462945\/","title":{"rendered":"Netflix and Paramount are fighting over Warner Bros. Discovery. Here’s the regulatory outlook"},"content":{"rendered":"

Warner Bros. Discovery is in the middle of a Hollywood tug-of-war<\/a> between Netflix and Paramount. And chances are it\u2019ll be a long, bumpy regulatory road ahead for either buyer.<\/p>\n

Warner\u2019s board on Wednesday urged shareholders<\/a> to back the deal it struck with Netflix to sell its studio and streaming business<\/a> for $72 billion. Meanwhile, Skydance-owned Paramount is moving forward with its hostile $77.9 billion bid<\/a> for a full takeover of the company, including networks like CNN.<\/p>\n

In both scenarios, a merger would likely trigger a review by the U.S. Justice Department, which could sue to block the transaction or request changes. But other countries and entities could challenge either acquisition, too. <\/p>\n

Politics are also expected to come into play under U.S. President Donald Trump<\/a>, who has made unprecedented suggestions about his personal involvement<\/a> on whether a deal will go through.<\/p>\n

The process could drag on for more than a year, if not longer. But regardless of who wins, new ownership of Warner properties would drastically reshape the industry \u2014 impacting movie-making<\/a>, streaming platforms and the broader media landscape.<\/p>\n

Here\u2019s what we know.<\/p>\n

A look at the players<\/p>\n

The buyout target \u2014 Warner Bros. Discovery \u2014 is a 102-year-old Hollywood giant. It is one of the \u201cbig five\u201d<\/a> studios, producing titles ranging from \u201cHarry Potter\u201d to \u201cSuperman.\u201d And its cable operations include top networks like CNN and Discovery. Warner also owns DC Studios and HBO Max.<\/p>\n

Paramount, which closed its own $8 billion merger<\/a> with Skydance just months ago, is also one of Hollywood\u2019s remaining legacy studios \u2014 with a blockbuster lineup including \u201cTop Gun\u201d and \u201cThe Godfather.\u201d Beyond traditional film and TV production, it owns networks like CBS, MTV and Nickelodeon, as well as the Paramount+ streaming service. <\/p>\n

<\/p>\n

\"An<\/p>\n

An aerial view shows Paramount Pictures in Los Angeles, Thursday, Dec. 18, 2025. (AP Photo\/Jae C. Hong)<\/p>\n

An aerial view shows Paramount Pictures in Los Angeles, Thursday, Dec. 18, 2025. (AP Photo\/Jae C. Hong)<\/p>\n

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For Netflix, streaming is its bread and butter, accounting for 20% of the U.S. market for on-demand subscriptions, according to data from streaming guide JustWatch. That compares to 13% for HBO Max and 7% for Paramount+. But Netflix has also built up its own production arm, rolling out popular titles like \u201cSquid Game\u201d and \u201cStranger Things.\u201d<\/p>\n

Netflix is the biggest of the three companies, with a market capitalization of around $430 billion as of mid-December. Warner Bros. Discovery is about $70 billion, while Paramount Skydance trails at closer to $14 billion.<\/p>\n

Regulatory hurdles for Netflix vs Paramount<\/p>\n

Paramount has already pointed to Netflix\u2019s streaming dominance, arguing that bringing the platform under the same roof as HBO Max would squash competition and give it \u201coverwhelming\u201d market share. But Netflix has maintained its merger will give consumers more choice, allowing it to offer more plans and titles for customers to choose from Warner\u2019s catalog. <\/p>\n

Antitrust experts expect Paramount and Netflix to try to convince regulators that they\u2019re not just up against more traditional rival subscriptions, but broader video libraries across the internet.<\/p>\n

<\/p>\n

\"A<\/p>\n

A Netflix sign is displayed atop a building in Los Angeles, Thursday, Dec. 18, 2025. (AP Photo\/Jae C. Hong)<\/p>\n

A Netflix sign is displayed atop a building in Los Angeles, Thursday, Dec. 18, 2025. (AP Photo\/Jae C. Hong)<\/p>\n

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YouTube<\/a> is at the top of the list and Netflix is already laying the groundwork to show Google\u2019s streaming platform dominance in terms of viewing hours, which, according to media analytics firm Nielsen, accounted for nearly 13% of viewership this fall compared with 8% for Netflix.<\/p>\n

Jim Speta, a professor at Northwestern University\u2019s Pritzker School of Law, expects both companies to say that a merger is \u201cnecessary for them to compete against YouTube.\u201d <\/p>\n

\u201cThe broader you make the market that we\u2019re thinking about, the less the merger looks anti-competitive,\u201d Speta said.<\/p>\n

Meanwhile, others will argue that either merger is bad for consumers. While content libraries may broaden, a case could be made about a combined company wielding its power to control prices \u2014 or adding more subscription hoops for consumers to jump through to watch certain titles.<\/p>\n

Among concerns, \u201cthe range of available content on the streaming services might decrease,\u201d said Scott Wagner, head of antitrust practice at law firm Bilzin Sumberg. He pointed to older movies in particular that could potentially see shorter streaming windows across platforms.<\/p>\n

Implications for studio production and news<\/p>\n

If successful, Paramount\u2019s takeover would combine two of Hollywood\u2019s \u201cbig five\u201d studios. And while Netflix has agreed to uphold Warner\u2019s contractual obligations for theatrical releases in its proposed acquisition, critics are skeptical given its reliance on online streaming.<\/p>\n

Some trade groups have warned that consequences of either deal could include job losses. Layoffs tied to restructuring are common following a merger and wouldn\u2019t likely draw antitrust scrutiny, but Speta notes competition concerns could still arise if a company \u201cbecomes so big that it has purchasing power\u201d and is deemed to control wages more broadly.<\/p>\n

<\/p>\n

\"A<\/p>\n

A Netflix sign is displayed atop a building in Los Angeles, Thursday, Dec. 18, 2025, with the Hollywood sign in the distance. (AP Photo\/Jae C. Hong)<\/p>\n

A Netflix sign is displayed atop a building in Los Angeles, Thursday, Dec. 18, 2025, with the Hollywood sign in the distance. (AP Photo\/Jae C. Hong)<\/p>\n

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For Paramount specifically, there\u2019s also the news and broader cable landscape to consider. <\/p>\n

Attorneys like Wagner expect the prospect of having Warner-owned CNN and Paramount\u2019s CBS under the same roof will be brought up in the regulatory review. But he doesn\u2019t believe it will carry the same weight as streaming and content library questions \u2014 or become a tipping point that will lead to the merger\u2019s demise overall.<\/p>\n

Similar to broadening the definition of the streaming market, advocates of the Paramount merger will probably point to wider media offerings beyond traditional TV news, including information-sharing on social media platforms, Warner said. <\/p>\n

But there are also political implications around a possible CBS-CNN combo. Under new Skydance ownership<\/a>, Paramount has already taken steps to appeal to more conservative viewers in its news operations, notably with the installation<\/a> of Free Press founder Bari Weiss<\/a> as editor-in-chief of CBS News. And if the company\u2019s takeover bid of Warner is successful, many expect similar shifts at CNN \u2014 a network that has long attracted ire from Trump.<\/p>\n

Trump\u2019s potential role<\/p>\n

Trump has been vocal about whether a buyout of Warner will go through, and even said<\/a> he would personally \u201cbe involved in that decision.\u201d<\/p>\n

Speta says such a suggestion should raise alarm. While changes in administration have caused shifts in the reach of antitrust enforcement over the years, \u201cpresidents picking whether mergers happen or don\u2019t happen is completely unprecedented,\u201d he said. <\/p>\n

Earlier this month, Trump said Netflix\u2019s deal \u201ccould be a problem\u201d because of the size of the combined market share. The Republican president also has a close relationship with billionaire Oracle founder Larry Ellison \u2014 the father of Paramount CEO David Ellison \u2014 whose family trust is heavily backing the company\u2019s bid to buy Warner. An investment firm run by Jared Kushner, Trump\u2019s son-in-law, was among other initial contributors to Paramount\u2019s bid, but later backed out.<\/a><\/p>\n

Meanwhile, Netflix has its own political connections. Trump previously called<\/a> Ted Sarandos, co-CEO of the streaming giant, a \u201cfantastic man\u201d and said the two met in the Oval Office before the proposed Warner merger was announced. And Trump has continued to publicly lash out at Paramount over editorial decisions at CBS\u2019 \u201c60 Minutes.\u201d <\/p>\n

Even without Trump\u2019s intervention, the companies could bruise themselves as the process plays out, according to Paul Nary, assistant professor of management at University of Pennsylvania\u2019s Wharton School of Business. He notes Warner Bros. Discovery has largely unperformed for shareholders since its inception just three years ago<\/a> \u2014 and could \u201cpotentially being left in even worse shape\u201d if management is distracted by shuffling through a long, drawn-out deal.<\/p>\n

\u201cThere\u2019s a potential for the winners curse here,\u201d he said. \u201cMedia and entertainment is one of those spaces where you see all of these mega mergers \u2014 high stakes (and) big egos competing over the glamorous assets. And so many of those deals end up failing.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Warner Bros. Discovery is in the middle of a Hollywood tug-of-war between Netflix and Paramount. And chances are…\n","protected":false},"author":3,"featured_media":462946,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[7060,3881,64,32129,69,59,192955,17966,92329,57119,8396,53,4659,103696,211043,109738,161221,67,132,68],"class_list":{"0":"post-462945","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-alphabet","9":"tag-ap-top-news","10":"tag-business","11":"tag-david-ellison","12":"tag-donald-trump","13":"tag-inc","14":"tag-industry-regulation","15":"tag-jared-kushner","16":"tag-larry-ellison","17":"tag-media-and-entertainment-industry","18":"tag-mergers-and-acquisitions","19":"tag-movies","20":"tag-netflix","21":"tag-paramount-skydance-corp","22":"tag-scott-wagner","23":"tag-streaming-media","24":"tag-ted-sarandos","25":"tag-united-states","26":"tag-unitedstates","27":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115759626110895437","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/462945","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=462945"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/462945\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/462946"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=462945"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=462945"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=462945"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}