One expert believes Netflix’s plan to acquire Warner Bros. is likely to go through without major issues. Andrew Lipman, who specializes in regulatory policy at a law firm in Washington, D.C., sees the deal moving forward. He noted that it may not be more complicated than Paramount’s recent attempt to take over Warner Bros.
Lipman shared his insights during the UBS Global Media and Communications Conference in New York. This event also featured Netflix Co-CEOs Greg Peters and Ted Sarandos, who advocated for their acquisition of Warner Bros.
Recently, Netflix proposed an $82.7 billion deal to acquire Warner Bros.’ studios and streaming division. The WBD board accepted the offer. In response, Paramount launched a hostile takeover bid of its own, proposing $108 billion for the entire company.
Regulatory concerns are central to both Netflix and Paramount’s strategies. Paramount argues that Netflix’s acquisition would give it an unfair advantage in the streaming market. Lipman disagrees, stating that the streaming industry is far broader than just one player. He emphasizes that consumers often use multiple services—almost five, on average—which makes switching between them simple.
Another factor at play is former President Trump’s possible involvement in the deal’s regulatory review. Although he has expressed interest, his relationship with both companies isn’t particularly close. Lipman believes that Trump may be flexible enough to facilitate deal-making.
Gail Slater, who leads the antitrust division in Trump’s Department of Justice, is known for her tough stance on enforcement. She has approved several deals this year but only after reaching settlement agreements. This precedent suggests a pathway for the Netflix-WBD deal, as her openness to settlements could allow negotiations to move forward.
Lipman predicts that Netflix might have to make concessions, such as agreements regarding movie theater schedules and licensing. He also highlights that the approval process will likely involve conditions that respond to cultural needs, reflecting broader trends in media content.
Interestingly, Lipman pointed out that artificial intelligence (AI) will play a crucial role in the regulatory process. He noted that AI had significant implications in past antitrust cases involving tech giants like Google and Meta. The rapidly evolving nature of AI could alter how industries operate by 2029, meaning regulators will need to consider these changes.
In summary, while the landscape is complex, the Netflix-Warner Bros. acquisition appears to be on track, albeit with potential regulations and compromises ahead. As this deal unfolds, it will be interesting to see how major players like Paramount respond and how new technologies like AI shape the media environment.
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antitrust,Department Of Justice,mergers and acquisitions,Netflix WB,Paramount,wbd
