Netflix Under Federal Review as DOJ Examines Warner Bros Merger Impact

The battle over Warner Bros. Discovery has taken a serious turn, and it is no longer just a business fight between major media companies. According to industry reports, the U.S. Department of Justice has now stepped in to closely examine Netflix’s attempt to merge with Warner Bros. Discovery, raising concerns about whether the deal could create too much power in one company’s hands.

Sources say federal regulators have sent out formal requests for documents and sworn testimony. The goal is to figure out if a potential Netflix and Warner Bros. Discovery merger would break antitrust laws, including the Clayton Act and the Sherman Act. These laws are designed to prevent companies from gaining unfair control over an industry.

This move comes at a very tense moment. The Warner Bros. Discovery board is currently reviewing a competing offer backed by Paramount and David Ellison. The board is expected to make a recommendation soon, with shareholders scheduled to vote on March 20. People who received the DOJ request have until March 23 to respond, just days after that vote.

One longtime producer described the situation as going nuclear, adding that a deal of this size was always going to draw government attention. The proposed acquisition is valued at around 83 billion dollars, making it one of the biggest media deals ever discussed.

Paramount has already made it clear that it plans to fight the merger in court if needed. The company argues that a combined Netflix and Warner Bros. Discovery would hurt competition across the global streaming business. Netflix leadership does not agree.

Speaking recently at an awards event in London, Netflix co CEO Ted Sarandos brushed off the criticism. He challenged competitors to just put a better deal on the table and see if they can win. Netflix and its legal team have also said the company is not a monopoly and that its growth comes from investment and creativity, not from shutting others out.

Despite those claims, the DOJ has expanded its inquiry to include producers and filmmakers across Hollywood. According to people familiar with the matter, the investigation picked up speed after a heated Senate subcommittee hearing earlier this month.

During that session, lawmakers pressed Sarandos about how a merger like this could affect culture, jobs, and creative freedom. Politics has also added to the tension. While President Trump has said he should not be involved in deciding what happens to Warner Bros.

Discovery or assets like CNN, reports say he has met privately with both the Ellison family and Sarandos. That has turned the deal into more than just a corporate issue, sparking wider debate about media power and regulation.

Even with all the pressure, Netflix continues to push forward creatively. Under Sarandos, the company has seen major success with recent releases like Society of the Snow and the latest season of Bridgerton. Netflix has also locked in high-profile partnerships, including future projects tied to The Chronicles of Narnia.

Warner Bros. Discovery remains a valuable prize. Led by David Zaslav, the studio has several major releases on the way, including Supergirl Woman of Tomorrow and new seasons of The Last of Us and A Knight of the Seven Kingdoms. These projects are seen as key reasons why multiple companies want control of the studio.

If Netflix ultimately wins the deal, the combined company would reportedly have more than 450 million subscribers worldwide. Still, with the DOJ now actively investigating, the future of the merger is far from clear.

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