If Ted Sarandos thought his marathon Senate grilling was the high-water mark of drama in Netflix’s pursuit of Warner Bros., he might want to check his inbox. After being interrogated by lawmakers, some demanding answers on pricing, competition, and culture wars, others grilling him on content ideology, a new party has sidled up to the table: Netflix’s competitors and US regulators.

Senators from both parties probed whether combining Netflix’s global reach with Warner’s powerhouse franchises could snuff out competition. Now, with rivals and regulators leaning in, the deal’s fate looks even more unpredictable.

Following the Senate session, the US Department of Justice (DOJ) has shifted from passive reviewer to active investigator. Unlike the standard merger clearance process under the Hart-Scott-Rodino regime, the DOJ is issuing subpoenas to entertainment firms about Netflix’s broader business practices. The question?

“Describe any other exclusionary conduct on the part of Netflix that would reasonably appear capable of entrenching market or monopoly power,” the US Department of Justice asked a rival company as part of its widening review, according to The Wall Street Journal. The aim: assess whether Netflix’s strategies beyond this single deal could entrench dominant market power or violate antitrust laws.

In straightforward terms, regulators are asking if this acquisition would make Netflix so big that it could unfairly force competitors out of business, limit consumer choice, or control talent contracts across Hollywood. The scope goes beyond whether Meta or Disney will blink. It is about whether a combined Netflix-Warner entity could reshape the economics of entertainment.

Netflix has pushed back gently but clearly. Steven Sunshine, a lawyer for Netflix, said the company views the DOJ's review as a routine assessment of its $82.7 billion proposal, and it is cooperating fully. The deal now sits in an uncomfortable grey zone, too big to ignore, too symbolic to rush.

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What began as a balance-sheet play has turned into a question of power, culture, and who really controls the future of Hollywood.

From its December 2025 announcement to the present moment, the deal has been high-stakes theatre. Netflix agreed to pay approximately $82.7 billion in cash and stock to acquire Warner Bros.’ studios, HBO Max, and associated assets, a move that would merge some of Hollywood’s richest content libraries. But it has not been smooth.

Paramount Skydance countered with a hostile bid exceeding $100 billion, arguing that its offer posed fewer regulatory risks. Warner’s board, however, has repeatedly rejected Paramount’s attempts, deeming Netflix’s proposal superior, and shareholders are slated to vote on the merger in March 2026.

If approved and cleared by regulators, potentially after many more months of review it could bring iconic franchises from Harry Potter to Friends under one streaming roof. But that is exactly what has stirred government concerns: is this just business, or is it too much power concentrated in one company?

Netflix’s quest to absorb Warner Bros. has transcended boardrooms and now grips regulators, lawmakers, and competitors alike. Its trajectory will define not only what we watch, but how competition in entertainment is governed. 

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What do you think? Is this deal good for viewers, or bad for competition? Share your thoughts.