Justice Department Probes The Impact Of Warner Bros. Sale On Theatre Businesses: Report

Group 1 - The Department of Justice (DOJ) is investigating the potential sale of Warner Bros. Discovery Inc. to assess its impact on the movie-going public and the number of movies released in theatres [1] - The DOJ's concerns are primarily focused on Netflix Inc.'s dominance in the streaming segment and its policy of showcasing only a limited number of movies in theatres for shorter durations [2] - Netflix Co-CEO Ted Sarandos has met with theatre chain CEOs to address concerns and has committed to releasing Warner Bros. movies in theatres exclusively for 45 days [3] Group 2 - Warner Bros. has rejected a takeover bid from Paramount Skydance and has given them until February 23 to submit their best offer, while also allowing Netflix to match the offer [5] - Analyst Gary Black predicts that Netflix will likely win the bidding war for Warner Bros., and he believes that Netflix shares could regain the $100 level even if Paramount wins the bid [6]