The entertainment industry faces a potential transformation if Netflix acquires Warner Bros. Discovery, which includes the company's studios and HBO Max operations. The merger will create the most powerful Hollywood entity through Netflix's worldwide streaming strength and Warner Bros.' extensive collection of timeless classics and premium television shows. However, even a blockbuster deal of its magnitude is not without its scrutiny and risks.

FCC chairman, who was appointed by Donald Trump, now has opined on the deal and its main power concerns.

Brendan Carr, the FCC chairman, stated that the Netflix-Warner Bros. deal creates serious competition concerns because the deal will lead to major streaming market consolidation. Carr expressed his belief that the merger between two top architects of entertainment would provide Netflix with too much market power, allowing the company to control its competitors and set prices and distribution methods.

“There are legitimate competition concerns that I’ve seen raised about their acquisition here, and just the sheer amount of scale and consolidation you can see in the streaming market,” Carr said in an interview with Bloomberg.

Carr presented his concerns about regulatory authority, though the Federal Communications Commission, which regulates broadcast TV licenses, lacks the power to block or assess the deal. His agency can identify problems but lacks formal intervention power.

The chairman's statement to the outlet has contributed to the ongoing discussion about whether traditional regulators need to assess media mergers through stricter scrutiny, particularly for the large-scale mergers that could diminish competition, in this case, the most talked-about deal between Netflix and Warner Bros.

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Netflix's humongous bid to Warner Bros. has left politicians rattled on both the aisle, as it seemingly threatens a monopoly. 

Despite Paramount Skydance's bid for acquisition rights, Netflix and Warner Bros. Discovery announced a binding contract in December 2025, which allows Netflix to purchase Warner Bros. film studios and HBO/HBO Max and main television properties after the deal materializes. The deal, which amounts to $82.7 billion, does not include WBD’s cable television assets.

Netflix has modified its initial proposal of a cash-and-stock deal by making an all-cash bid, which intends to create a more straightforward transaction process that will speed up shareholder approval while facing competition from Paramount's competing offer.

Supporters believe that the merger will improve Netflix's ability to distribute content worldwide because it will expand its content library. Critics claim that the merger will decrease available options for customers because it will give Netflix excessive control over Hollywood operations.

Politicians from both parties have expressed concern over Netflix's insurmountable potential influence if it acquires Warner Bros., with Sen. Elizabeth Warren (D-Massachusetts) describing the deal as an anti-monopoly nightmare. Meanwhile, Netflix co-CEO Ted Sarandos and WBD chief strategy officer Bruce Campbell are set to testify before an antitrust Senate hearing next month to deal with concerns regarding several red flags.

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