Paramount launched a hostile bid for Warner Bros. Discovery this week, simply days after Netflix struck a deal to amass the legacy media firm.
The rival multi-billion greenback efforts to buy streaming platform HBO Max and film studio Warner Bros., amongst different property, might upend the media business and form content material considered by a whole bunch of thousands and thousands of individuals.
For now, the end result stays extremely unsure. Any acquisition of Warner Bros. Discovery would doubtless be reviewed by the Trump administration, which might transfer to dam a proposed merger over anti-monopoly issues, in accordance with antitrust specialists from Vanderbilt College, the College of Tennessee and the Cardozo Regulation College.
The federal government approval course of might take anyplace from a number of months to greater than a yr, the specialists stated.
The Division of Justice didn’t instantly reply to ABC Information’ request for remark.
Here is what to know in regards to the authorities hurdles confronted by a possible blockbuster deal to amass Warner Bros:
What authorities hurdles await a bid from Netflix or Paramount?
Streaming big Netflix appeared to win the bidding struggle for Warner Bros. Discovery final week, when the 2 companies introduced a merger. Inside days, nonetheless, Paramount launched a hostile bid for Warner Bros. Discovery, that means Paramount plans to attraction to shareholders in an effort to beat the needs of administration.
The $108 billion bid from Paramount encompasses the HBO Max streaming service, the Warner Bros. movie manufacturing firm and cable channels akin to CNN. Netflix established its settlement with Warner Bros. Discovery at a lower cost of $83 billion, although the Netflix supply excluded the cable channels.
In the end, the prevailing bid for Warner Bros. Discovery — whether or not from Paramount or Netflix — will doubtless face scrutiny from the Trump administration that would doom the proposal if company officers contemplate the newly created firm in violation of anti-monopoly legislation, specialists stated.
An antitrust assessment of the merger would draw on an ordinary established within the Clayton Antitrust Act of 1914, some specialists stated. The legislation prohibits mergers through which “the impact of such acquisition could also be considerably to minimize competitors, or to are inclined to create a monopoly.”
As a part of its evaluation, Trump officers would look at the market share of the newly created firm, particularly with regard as to if it might lead to larger costs for shoppers or diminished charges for creators promoting content material to media firms, Maurice Stucke, a legislation professor on the College of Tennessee, advised ABC Information.
An antitrust assessment might additionally give attention to the potential impression on content material distributors, akin to film theaters, Stucke famous.
“It isn’t only a query of upper costs,” Stucke stated. “It might be much less content material, much less selection, much less innovation and a lower in high quality — all of these might be a priority.”
If the Trump administration considers a possible merger unlawful, a federal company might search a settlement beneath phrases that may assuage authorities issues.
Usually, the Federal Commerce Fee or the Division of Justice (DOJ) are tasked with settlement negotiations or authorized motion tied to antitrust issues.
In June, as an example, the DOJ introduced a settlement settlement that permitted Hewlett Packard Enterprise’s (HPE) $14 billion buy of Juniper Networks, a digital infrastructure agency. The settlement requires HPE to divest part of its enterprise and license Juniper Community’s crucial software program to opponents, the DOJ stated.
If a settlement between the federal government and the agency can’t be reached, the Trump administration could transfer to sue the corporate in an effort to dam the merger. A lawsuit would current a process for the Trump administration, Stucke stated: “How do you show this in courtroom?”
The potential merger might additionally obtain scrutiny from state-level regulators or the European Union.
David Ellison, CEO of Paramount Skydance, exits following an interview on the New York Inventory Alternate (NYSE) in New York, Dec. 8, 2025.
Brendan Mcdermid/Reuters
How could regulators weigh a bid from Netflix or Paramount?
Proposals from Netflix or Paramount might every increase antitrust issues, however for barely completely different causes, some specialists stated.
Netflix is the most well-liked streaming service, boasting 300 million subscribers worldwide as of late 2024, the latest time for which information is offered. The corporate accounts for 46% of cellular app month-to-month energetic customers in international streaming, in accordance with a CNBC evaluation of information from intelligence agency Sensor Tower. After buying HBO Max, that share of app customers would rise to 60%, CNBC stated.
“Netflix has studios and an enormous chunk of streaming,” Sam Weinstein, a professor on the Cardozo College of Regulation who focuses on antitrust, advised ABC Information. “For those who assume that is a market, they could have a sufficiently big chunk that they’ll increase costs to impression streamers.”
“Then again, they seem to be a large purchaser of tasks. Creators may assume, ‘Properly now there’s one much less studio to bid on my work,” he added.
Netflix could search a broad definition of the market that features shoppers of on-line video, akin to YouTube and short-form social media content material, moderately than merely conventional streaming, in accordance with Weinstein.
“In that bigger market, Netflix has a a lot smaller share,” Weinstein stated.
Chatting with reporters on an earrings name on Friday, Netflix co-CEO Ted Sarandos voiced confidence about authorities approval of the merger.
“This deal is pro-consumer, pro-innovation, pro-worker, it is pro-creator, it is pro-growth,” Sarandos stated, including that the agency would “work actually carefully with all the suitable governments and regulators.”
Paramount+ counts a smaller streaming viewers than Netflix, recording about 79.1 million subscribers in September 2025, or lower than a 3rd of the viewers of Netflix. The comparatively small market share for streaming might reduce concern amongst regulators in regards to the potential to push up costs for shoppers, some specialists stated.
Nonetheless, Paramount boasts a film studio of its personal, Paramount Photos, presenting a danger of decreased competitors for content material manufacturing within the occasion of a possible merger, Rebecca Allensworth, a legislation professor at Vanderbilt College, advised ABC Information. In flip, TV exhibits or motion pictures might command decrease costs for creators, whereas actors or different staff might lose out on pay, she famous.
“At this second, you possibly can method both Warner or Paramount as aggressive studios,” Allensworth stated. “This may take away a type of choices.”
Chatting with CNBC on Monday, Paramount Skydance CEO David Ellison addressed antitrust issues, saying the supply from Paramount compares favorably to the one from Netflix when thought-about by the lens of preserving a aggressive business.
“What we’re creating by placing these two firms collectively is an actual competitor to Netflix, an actual competitor to Amazon, an actual competitor to Disney — not one thing that’s so anti-competitive,” Ellison stated.
Might the Trump administration take into consideration points unrelated to competitors?
The Trump administration could retain leeway to contemplate points unrelated to competitors, together with potential agreements surrounding protection at new shops akin to Warner Bros. Discovery-owned CNN, some specialists stated, noting the murky nature of antitrust legislation.
“A dashing violation or homicide is pretty clear minimize,” Stucke stated. “With bringing an antitrust declare, there’s plenty of discretion.”
Trump, a frequent critic of main information shops together with CNN, advised reporters on Sunday that he would “be concerned” within the resolution on a possible Warner Bros. Discovery merger. Trump’s willingness to take a direct function in deal analysis departs from commonplace apply through which the president has sought to distance himself from antitrust evaluations, Weinstein famous.
“The norm is that the White Home would not get entangled — that positively is not occurring right here,” he stated.
Talking on the purple carpet on the Kennedy Middle honors on Sunday, Trump raised antitrust issues a few potential Netflix acquisition, saying the deal “might be an issue” as a result of market share of the brand new agency.
The circumstances afford the Trump administration leverage to extract potential concessions from a purchaser like Netflix or Paramount, since in every case the acquisition presents reliable antitrust points, granting Trump a possibility to train sturdy oversight of the merger whereas searching for a positive settlement, Allensworth stated.
“As a result of antitrust legislation would doubtless discover at the very least severe issues with the merger, Trump could make that every one go away on phrases that he agrees to,” Allensworth added.
Weinstein agreed, suggesting that their could also be a court-enforceable settlement.
“It is fully potential you might need a consent decree with situations which might be non-competitive,” Weinstein stated.
As a part of a course of searching for Federal Communications Fee approval for its $8 billion acquisition of Paramount earlier this yr, Skydance agreed to a collection of concessions that appeared to align with the views of the Trump administration, together with agreements to forego implementation of range, fairness or inclusion packages and appoint an ombudsman.
In an announcement when the acquisition was authorized in July, FCC Chairman Brendan Carr stated the modifications aimed to enhance public belief in mainstream information shops like CBS.
“Individuals not belief the legacy nationwide information media to report totally, precisely, and pretty. It’s time for a change,” Carr stated. “That’s the reason I welcome Skydance’s dedication to make important modifications on the as soon as storied CBS broadcast community.”
Specialists underscored the uncertainty surrounding the end result of a possible assessment of the Warner Bros. Discovery merger.
“If it is a straight-up merger beneath antitrust pointers, that is one factor,” Weinstein stated. “For those who can win favor of the administration by making guarantees, that makes the deal unpredictable.”
