Paramount and Netflix Encounter Antitrust Challenges in Warner Bros Discovery Acquisition Efforts
Entertainment, business, and compliance lawyer Seth Berenzweig joins Mornings with Maria to weigh in on Paramount’s bid for Warner Bros. Discovery as Netflix faces a potential class action lawsuit over the merger.
Both Paramount, a Skydance Corporation, and Netflix are vying to acquire Warner Bros. Discovery. However, they may encounter similar antitrust challenges that could necessitate adjustments to their plans to appease regulators, according to competition law expert Scott Wagner.
Warner Bros. Discovery (WBD) has agreed to sell its film and television studios, along with its streaming platform HBO Max, to Netflix in a cash-and-stock deal valued at $27.75 per share. In a surprising turn, Paramount announced an all-cash tender offer of $30.00 per share, claiming it to be a “superior” proposal.
Wagner, co-head of the antitrust practice at Bilzin Sumberg, regularly advises clients navigating regulatory investigations by the Department of Justice and other governmental bodies. He noted that both Paramount and Netflix face significant hurdles in their pursuit of WBD.
TRUMP SAYS ‘ANY DEAL’ TO BUY WARNER BROS SHOULD INCLUDE CNN
Paramount, a Skydance Corporation, and Netflix both want to purchase Warner Bros. Discovery. (Anna Barclay/Getty Images / Getty Images)
“Even though Paramount’s share of the streaming market is less than Netflix’s, the considerations would be very similar,” Wagner explained to Fox News Digital. He added, “While Netflix has a larger market share, Paramount’s is significant enough that the combined entity would be scrutinized closely.”
Another critical aspect is that Paramount’s bid encompasses the entirety of WBD, including its Global Networks segment, which features CNN and other cable assets. In contrast, Netflix is only interested in acquiring the studio and streaming divisions, leaving behind struggling cable holdings like CNN.
Wagner noted that if Paramount were to control both CBS News and CNN, it would command a substantial share of traditional media. However, he mentioned that courts might also consider newer platforms like X, Substack, and podcasts when evaluating the overall market.
Whichever company lands Warner Bros. Discovery will face antitrust concerns. (Aleksander Kalka/NurPhoto via Getty Images / Getty Images)
“From a technical antitrust perspective, the news side of things will probably be less of a concern than the streaming side,” Wagner stated. He elaborated, “While one could argue that the relevant market is legacy media, a broader market definition may be more appropriate.”
Meanwhile, President Donald Trump emphasized that CNN should be included in any sale. “The people that have run CNN for a long time are a disgrace,” he remarked. “It’s imperative that CNN be sold to prevent those individuals from continuing to spread lies and poison.”
Warner Bros. Discovery CEO David Zaslav. (Michael M. Santiago/Getty Images / Getty Images)
While Netflix has not shown interest in acquiring the struggling network, Wagner believes this stance may need to change for a successful acquisition of WBD. “If I were advising Netflix, I would suggest they do everything possible to gain DOJ approval for this deal,” he said.
Wagner also mentioned that Netflix could consider including CNN in their acquisition to appease regulators, with the option to sell it post-approval. “That is certainly a possibility,” he noted.
Panelists Ross Gerber and Laura Martin weigh in on the bidding war over Warner Bros. Discovery between Netflix and Paramount Skydance on The Claman Countdown.
The timeline for a merger of this magnitude is typically lengthy, with approval processes taking one to two years. Following approval, there is often an additional period required to finalize the deal. “This is not just a U.S. issue; the EU and other jurisdictions will also scrutinize the acquisition,” Wagner explained. “It’s possible that regulators in other regions may seek modifications or divestitures that U.S. regulators do not.”
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Fox News Digital’s Joseph A. Wulfsohn contributed to this report.
Entertainment, business, and compliance lawyer Seth Berenzweig joins Mornings with Maria to weigh in on Paramount’s bid for Warner Bros. Discovery as Netflix faces a potential class action lawsuit over the merger.
Both Paramount, a Skydance Corporation, and Netflix are vying to acquire Warner Bros. Discovery. However, they may encounter similar antitrust challenges that could necessitate adjustments to their plans to appease regulators, according to competition law expert Scott Wagner.
Warner Bros. Discovery (WBD) has agreed to sell its film and television studios, along with its streaming platform HBO Max, to Netflix in a cash-and-stock deal valued at $27.75 per share. In a surprising turn, Paramount announced an all-cash tender offer of $30.00 per share, claiming it to be a “superior” proposal.
Wagner, co-head of the antitrust practice at Bilzin Sumberg, regularly advises clients navigating regulatory investigations by the Department of Justice and other governmental bodies. He noted that both Paramount and Netflix face significant hurdles in their pursuit of WBD.
TRUMP SAYS ‘ANY DEAL’ TO BUY WARNER BROS SHOULD INCLUDE CNN
Paramount, a Skydance Corporation, and Netflix both want to purchase Warner Bros. Discovery. (Anna Barclay/Getty Images / Getty Images)
“Even though Paramount’s share of the streaming market is less than Netflix’s, the considerations would be very similar,” Wagner explained to Fox News Digital. He added, “While Netflix has a larger market share, Paramount’s is significant enough that the combined entity would be scrutinized closely.”
Another critical aspect is that Paramount’s bid encompasses the entirety of WBD, including its Global Networks segment, which features CNN and other cable assets. In contrast, Netflix is only interested in acquiring the studio and streaming divisions, leaving behind struggling cable holdings like CNN.
Wagner noted that if Paramount were to control both CBS News and CNN, it would command a substantial share of traditional media. However, he mentioned that courts might also consider newer platforms like X, Substack, and podcasts when evaluating the overall market.
Whichever company lands Warner Bros. Discovery will face antitrust concerns. (Aleksander Kalka/NurPhoto via Getty Images / Getty Images)
“From a technical antitrust perspective, the news side of things will probably be less of a concern than the streaming side,” Wagner stated. He elaborated, “While one could argue that the relevant market is legacy media, a broader market definition may be more appropriate.”
Meanwhile, President Donald Trump emphasized that CNN should be included in any sale. “The people that have run CNN for a long time are a disgrace,” he remarked. “It’s imperative that CNN be sold to prevent those individuals from continuing to spread lies and poison.”
Warner Bros. Discovery CEO David Zaslav. (Michael M. Santiago/Getty Images / Getty Images)
While Netflix has not shown interest in acquiring the struggling network, Wagner believes this stance may need to change for a successful acquisition of WBD. “If I were advising Netflix, I would suggest they do everything possible to gain DOJ approval for this deal,” he said.
Wagner also mentioned that Netflix could consider including CNN in their acquisition to appease regulators, with the option to sell it post-approval. “That is certainly a possibility,” he noted.
Panelists Ross Gerber and Laura Martin weigh in on the bidding war over Warner Bros. Discovery between Netflix and Paramount Skydance on The Claman Countdown.
The timeline for a merger of this magnitude is typically lengthy, with approval processes taking one to two years. Following approval, there is often an additional period required to finalize the deal. “This is not just a U.S. issue; the EU and other jurisdictions will also scrutinize the acquisition,” Wagner explained. “It’s possible that regulators in other regions may seek modifications or divestitures that U.S. regulators do not.”
CLICK HERE TO GET THE FOX NEWS APP
Fox News Digital’s Joseph A. Wulfsohn contributed to this report.
