Netflix under the microscope of the US Department of Justice. This is about taking over the owner of TVN
Battle to take over Warner Bros. Discovery continues and there is no indication that it will end anytime soon.
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Two players are fighting for the company. On the one hand, there is Netflix, which in December last year submitted an offer to take over Warner Bros. film studios and streaming platforms. Discovery for $27.75 per share, which meant that the total value of the transaction would be USD 72 billion.
Read also: The dispute over the acquisition of Warner Bros. Discovery. Court blocks Paramount's demands
In response, Paramount submitted a competitive offer, which for USD 77.9 billion proposed to take over the entire Warner Bros. business. Discovery.
After analyzing both offers, the board of directors of Warner Bros. Discovery (WBD) issued a recommendation to shareholders to accept Netflix's offer to take over part of the company. Since then, everything seemed to indicate that this would be the case. However, the competition has not given up and the whole transaction is only becoming more and more complicated.
Now, according to “The Wall Street Journal”, a new player has appeared on the board – the US Department of Justice, which will check whether the merger of Netflix with Warner could threaten competition on the market. This can stop the transaction completely. The journal reminds that US antitrust law allows law enforcement authorities to block transactions that may lead to the creation of a monopoly or significantly restrict competition.
The US Department of Justice is already working and, according to “WSJ”, is currently sending inquiries to companies from the entertainment industry with questions about potential ““exclusionary actions” by Netflix that could strengthen its market position.
Read also: Netflix will buy Warner Bros. The decision has been made
In response to these reports, a Netflix spokesman quoted by Reuters reports that the company “is unaware of any investigation into its activities beyond the standard merger review process“.
It emphasizes that the company is “cooperating constructively” with the Department of Justice as part of its standard review of the proposed agreement.
