Trump ally Mike Lee rails against Netflix-Warner Bros. merger
Are they actually going to vote on something real?
Sen. Mike Lee (R-UT), who chairs the Senate Judiciary Committee’s antitrust subcommittee, is leading the growing Republican opposition to the proposed merger between Netflix and Warner Bros. Discovery.
Lee’s concerns about the antitrust implications of the pending purchase, should it proceed, underscore the importance of the regulatory approval process in this case.
Notably, Lee voiced his objections to the unprecedented Hollywood deal ahead of his subcommittee’s Feb. 3 hearing. The hearing is expected to feature testimony from Netflix co-CEO Ted Sarandos and Warner Bros. Chief Strategy Officer Bruce Campbell.
In a Jan. 22 letter sent to the heads of both entertainment companies, the Republican chairman requested information on the Netflix-Warner Bros. merger due to several concerns.
“This merger raises concerns about potential abuse of the merger review process, particularly the exchange or misuse of competitively sensitive information and the competitive harm that can arise while a transaction remains under review,” Lee wrote. “I am also concerned that this proposed transaction could operate as a so-called ‘killer non-acquisition,’ effectively weakening a major competitor through the pendency of the merger review process.”
The letter did not explicitly name Paramount Skydance or its quest to outbid Netflix in buying Warner Bros, which has rejected Paramount’s offers several times.
“This transaction appears likely to raise serious antitrust issues, including the risk of substantially lessening competition in streaming markets,” Lee continued. “If consummated, the acquisition could eliminate a major competitor, consolidate control over an extensive content library, and increase bargaining power over creators and talent.”
Lee’s concerns were corroborated by a new report from the Digital Progress Institute, which warned that the “unlawful” and “anticompetitive” merger will impose higher streaming prices on consumers. The report argued the deal should be blocked by federal regulators because of this.
The Department of Justice, particularly its Antitrust Division, and the Federal Trade Commission are the bodies with the power to approve the merger. Neither has commented on the deal yet, although President Donald Trump said he would be involved in the regulatory process.
The report was co-authored by DPI President Joel Thayer, who aligns with Trump’s policy goals, and former Rep. Ken Buck (R-CO), a vocal Trump critic during his decade in Congress. …
Are they actually going to vote on something real?
Sen. Mike Lee (R-UT), who chairs the Senate Judiciary Committee’s antitrust subcommittee, is leading the growing Republican opposition to the proposed merger between Netflix and Warner Bros. Discovery.
Lee’s concerns about the antitrust implications of the pending purchase, should it proceed, underscore the importance of the regulatory approval process in this case.
Notably, Lee voiced his objections to the unprecedented Hollywood deal ahead of his subcommittee’s Feb. 3 hearing. The hearing is expected to feature testimony from Netflix co-CEO Ted Sarandos and Warner Bros. Chief Strategy Officer Bruce Campbell.
In a Jan. 22 letter sent to the heads of both entertainment companies, the Republican chairman requested information on the Netflix-Warner Bros. merger due to several concerns.
“This merger raises concerns about potential abuse of the merger review process, particularly the exchange or misuse of competitively sensitive information and the competitive harm that can arise while a transaction remains under review,” Lee wrote. “I am also concerned that this proposed transaction could operate as a so-called ‘killer non-acquisition,’ effectively weakening a major competitor through the pendency of the merger review process.”
The letter did not explicitly name Paramount Skydance or its quest to outbid Netflix in buying Warner Bros, which has rejected Paramount’s offers several times.
“This transaction appears likely to raise serious antitrust issues, including the risk of substantially lessening competition in streaming markets,” Lee continued. “If consummated, the acquisition could eliminate a major competitor, consolidate control over an extensive content library, and increase bargaining power over creators and talent.”
Lee’s concerns were corroborated by a new report from the Digital Progress Institute, which warned that the “unlawful” and “anticompetitive” merger will impose higher streaming prices on consumers. The report argued the deal should be blocked by federal regulators because of this.
The Department of Justice, particularly its Antitrust Division, and the Federal Trade Commission are the bodies with the power to approve the merger. Neither has commented on the deal yet, although President Donald Trump said he would be involved in the regulatory process.
The report was co-authored by DPI President Joel Thayer, who aligns with Trump’s policy goals, and former Rep. Ken Buck (R-CO), a vocal Trump critic during his decade in Congress. …
Trump ally Mike Lee rails against Netflix-Warner Bros. merger
Are they actually going to vote on something real?
Sen. Mike Lee (R-UT), who chairs the Senate Judiciary Committee’s antitrust subcommittee, is leading the growing Republican opposition to the proposed merger between Netflix and Warner Bros. Discovery.
Lee’s concerns about the antitrust implications of the pending purchase, should it proceed, underscore the importance of the regulatory approval process in this case.
Notably, Lee voiced his objections to the unprecedented Hollywood deal ahead of his subcommittee’s Feb. 3 hearing. The hearing is expected to feature testimony from Netflix co-CEO Ted Sarandos and Warner Bros. Chief Strategy Officer Bruce Campbell.
In a Jan. 22 letter sent to the heads of both entertainment companies, the Republican chairman requested information on the Netflix-Warner Bros. merger due to several concerns.
“This merger raises concerns about potential abuse of the merger review process, particularly the exchange or misuse of competitively sensitive information and the competitive harm that can arise while a transaction remains under review,” Lee wrote. “I am also concerned that this proposed transaction could operate as a so-called ‘killer non-acquisition,’ effectively weakening a major competitor through the pendency of the merger review process.”
The letter did not explicitly name Paramount Skydance or its quest to outbid Netflix in buying Warner Bros, which has rejected Paramount’s offers several times.
“This transaction appears likely to raise serious antitrust issues, including the risk of substantially lessening competition in streaming markets,” Lee continued. “If consummated, the acquisition could eliminate a major competitor, consolidate control over an extensive content library, and increase bargaining power over creators and talent.”
Lee’s concerns were corroborated by a new report from the Digital Progress Institute, which warned that the “unlawful” and “anticompetitive” merger will impose higher streaming prices on consumers. The report argued the deal should be blocked by federal regulators because of this.
The Department of Justice, particularly its Antitrust Division, and the Federal Trade Commission are the bodies with the power to approve the merger. Neither has commented on the deal yet, although President Donald Trump said he would be involved in the regulatory process.
The report was co-authored by DPI President Joel Thayer, who aligns with Trump’s policy goals, and former Rep. Ken Buck (R-CO), a vocal Trump critic during his decade in Congress. …
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