Benzinga·2025-12-08 07:16Core Viewpoint - The proposed $82.7 billion merger between Netflix Inc. and Warner Bros Discovery Inc. is facing significant criticism from antitrust advocates, who argue it could lead to monopolization in the entertainment industry [1][3]. Regulatory Concerns - Antitrust advocate Matt Stoller describes the merger as a "recipe for monopolization" and suggests it will face challenges under the Clayton Act, indicating a straightforward case for antitrust lawyers [3]. - The merger is expected to encounter bipartisan political backlash, with notable figures like Republican Senator Mike Lee expressing concerns about its implications for market competition [5]. Industry Impact - Stoller warns that the merger could diminish the bargaining power of writers, directors, and actors, potentially leading to negative outcomes for the theatrical marketplace [4]. - The deal is also facing pushback from competitors, with Paramount Skydance alleging that the auction process was biased in favor of Netflix [7]. Market Reaction - Following the announcement of the merger, Netflix shares experienced a decline of 2.89%, closing at $100.24, although they saw a slight recovery of 1.06% overnight [8].