DOJ Subpoena Questions Netflix’s $82.7B Warner Bros. Discovery Merger
The U.S. Justice Department has issued a civil subpoena probing potential exclusionary conduct in Netflix’s proposed $82.7 billion Warner Bros. Discovery acquisition. Regulators are assessing whether Netflix and HBO Max combined would control about 30 percent of U.S. subscription streaming, potentially jeopardizing the $27.75 per share deal.
1. DOJ Subpoena and Scope of Investigation
The Justice Department has issued a civil subpoena to a third party seeking documents on whether Netflix engaged in exclusionary conduct that could entrench its streaming dominance in the course of acquiring Warner Bros. Discovery assets.
2. Deal Valuation and Rival Offers
Under the terms of the agreement, Netflix would pay $27.75 per share for Warner Bros. Discovery, valuing the transaction at about $72 billion in equity and $82.7 billion in enterprise value, while Paramount Skydance has mounted a rival $77.9 billion hostile bid.
3. Market Share and Antitrust Thresholds
Estimates suggest the combined Netflix and HBO Max services would capture roughly 30 percent of the U.S. paid streaming market, a level that triggers heightened antitrust scrutiny under Justice Department guidelines, despite Netflix noting significant subscriber overlap.