Core Viewpoint - Netflix's interest in acquiring Warner Bros. Discovery has raised significant antitrust concerns among senior White House officials, who fear that such a deal could grant Netflix excessive power in the Hollywood ecosystem [1][7][10]. Group 1: Antitrust Concerns - A high-level meeting among White House officials discussed the unique antitrust concerns posed by Netflix, suggesting that a successful acquisition could trigger a lengthy investigation similar to those faced by Google and Amazon [2][3]. - Officials expressed that Netflix's existing market dominance, combined with the acquisition of a major streaming service, could stifle competition in the industry [4][10]. - There is a possibility of a broader investigation into Netflix's market power, as officials believe its size could hinder competition in the streaming sector [2][10]. Group 2: Acquisition Dynamics - Warner Bros. Discovery's board has set a deadline for a second round of offers, with Netflix expected to submit a revised bid for the studio and HBO Max [4][9]. - Other competitors, such as Paramount Skydance and Comcast, are also expected to increase their bids for Warner Bros. Discovery, indicating a competitive bidding environment [5][6][9]. - If Netflix's bid is successful, it could lead to a protracted investigation by the Department of Justice, potentially expanding to examine Netflix's overall operations [17][18]. Group 3: Regulatory Landscape - Netflix's legal team is advocating that the acquisition would not violate antitrust laws based on the theory of "category ambiguity," arguing that the streaming market is too diverse for traditional antitrust concerns to apply [11][13]. - Despite some support for this argument, skepticism remains among senior White House officials regarding Netflix's substantial influence in the media landscape [14][15]. - Concerns have been raised about Netflix's power over content creators and talent, aligning with a broader regulatory agenda focused on anti-competitive practices in media and technology [15][18].

Netflix is ramping up a major charm offensive with Warner Bros. Discovery and US regulators as it pursues the media giant’s streaming service and Hollywood studio – and rival bidders fret that it may be working, On The Money has learned.The lobbying blitz by Netflix’s Chief Executive Ted Sarandos – which is looking to soothe antitrust concerns not only with the Trump administration but also members of Warner Bros. Discovery’s board – has begun to chip away at Paramount Skydance’s lead in the auction, accord ...