{"id":105124,"date":"2025-12-06T01:22:34","date_gmt":"2025-12-06T01:22:34","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2025\/12\/06\/netflix-to-buy-warner-bros-for-82-7-billion-but-trump-fcc-doj-could-intervene-for-all-the-wrong-reasons\/"},"modified":"2025-12-06T01:24:16","modified_gmt":"2025-12-06T01:24:16","slug":"netflix-to-buy-warner-bros-for-82-7-billion-but-trump-fcc-doj-could-intervene-for-all-the-wrong-reasons","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2025\/12\/06\/netflix-to-buy-warner-bros-for-82-7-billion-but-trump-fcc-doj-could-intervene-for-all-the-wrong-reasons\/","title":{"rendered":"Netflix To Buy Warner Bros For $82.7 Billion, But Trump FCC, DOJ Could Intervene For All The Wrong Reasons"},"content":{"rendered":"

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from the do-not-pass-go,-do-not-collect-$200<\/i> dept<\/h3>\n

So Netflix has introduced that it\u2019s shopping for Warner Brothers Discovery (together with HBO) for a whopping $82.7 billion<\/a>. As we\u2019ve well covered<\/a>, it\u2019s the newest in an extended sequence of pointless Warner mergers stretching again to the 2001 AOL acquisition, which all resulted in oodles of chaos, worth hikes, layoffs, and usually a gradual erosion in product high quality.<\/p>\n

Netflix\u2019s deal features a $5.8 billion breakup price and guarantees to keep up Warner Bros. present operations, \u201ctogether with theatrical releases.\u201d The deal doesn\u2019t embrace Warner Bros Discovery\u2019s struggling linear networks enterprise (CNN, TNT, HGTV and Discovery+) which Netflix correctly needed nothing to do with. These are scheduled to be spun out subsequent 12 months into their very own sagging sub-company.<\/p>\n

Netflix is, after all, making all method of pre-merger guarantees about how the deal will be great for everyone, especially creatives<\/a>:<\/p>\n

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\u201cNetflix additionally made its pitch to filmmakers and creatives, writing that \u201cby uniting Netflix\u2019s member expertise and world attain with Warner Bros.\u2019 famend franchises and intensive library, the Firm will create better worth for expertise \u2014 providing extra alternatives to work with beloved mental property, inform new tales and join with a wider viewers than ever earlier than.\u201d<\/em><\/p>\n<\/blockquote>\n

However as we\u2019ve seen the final three or 4 instances Warner Brothers has been acquired, pre-merger guarantees imply completely nothing. The large debt created by these acquisitions inevitably ends in panicked price reducing, which often entails mass layoffs, (even greater) worth hikes, and a basic cannibalization of name and product high quality. It occurs time and again. <\/p>\n

Of the suitors that would have purchased Warner Brothers Discovery (Comcast\/NBC and Larry Ellison\/CBS\/Paramount), Netflix might be the \u201cgreatest\u201d possibility. They’re (for now) the least up Trump\u2019s ass of the three bidders; and usually might<\/strong> retain extra of the core Warner Brothers Discovery infrastructure and workers on account of fewer present redundancies. <\/p>\n

That\u2019s to not say the deal shall be good, essentially. If we lived in a non-corrupt nation with functioning regulators, the federal government doubtless wouldn\u2019t enable any<\/strong> extra consolidation in mainstream company media, because the outcomes up to now have been nothing however dangerous for labor, customers, and markets. These corporations\u2019 journalism arms, should you haven\u2019t seen, prefer to downplay or ignore this truth in protection. <\/p>\n

Play just a little recreation with me at dwelling: should you\u2019re studying a narrative about this deal, cease and spot if the journalist and outlet, at any level<\/strong>, mentions the truth that the many years\u2019 value of previous variants of Warner offers had been totally disastrous for labor, customers, creativity, and wholesome markets. As a result of that\u2019s type of essential context in case your job is informing the general public of the reality!<\/p>\n

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The bungled AT&T acquisition of Warner and DirecTV alone<\/strong> resulted in a massive layoff spree including 50,000 people<\/a>. However when the consolidated company press covers the newest merger, that\u2019s not talked about. Why is that selection made editorially, do you wager?<\/p>\n

In the meantime Netflix nonetheless has a hurdle to face: the bizarre zealots on the Trump DOJ and FCC. Paramount and\/or the Trump administration has spent the final week seeding complaints in Republican-friendly media that the bidding process was unfair to Larry Ellison and CBS\/Paramount<\/a>, and that the Trump administration is concerned about the antitrust impact of a Netflix Warner Brothers combination<\/a>. <\/p>\n

The Trump administration couldn\u2019t give any much less of a shit about antitrust or consolidated company energy; they simply need leverage over Netflix and\/or to ensure their buddy Larry Ellison can purchase HBO and CNN. And so they\u2019re mad at Netflix as a result of they put some gay people in shows about the military<\/a>. The Ellisons might purchase the spun off TV belongings, however they could additionally nonetheless wish to leverage Trump to get far more. <\/p>\n

So I might not be shocked that if in just a few weeks or so that you see Trump\u2019s FCC lackey Brendan Carr launch some type of pretend inquiry into \u201cirregularities within the bidding course of,\u201d the place he talks quite a bit about Netflix\u2019s consolidated energy \u201cnot being within the public curiosity.\u201d The aim shall be twofold: to pressure possession over to Ellison, or a minimum of to (as we\u2019ve seen with CBS mergers) pressure Netflix to kiss Donald\u2019s ass.<\/p>\n

The press (and the usual assortment of useful idiot pundits<\/a>) will doubtless then assist Trump faux these inquiries are professional \u201cpopulist\u201d antitrust actions.<\/p>\n

When you recall, the primary Trump administration sued to cease the AT&T Time Warner deal. That was heralded as a uncommon instance of the administration really caring about consolidated company energy by the press; nevertheless it turned out it was principally as a result of Rupert Murdoch had his personal acquisition provide for CNN rejected and wanted to scuttle the deal<\/a>. <\/p>\n

Maintain your eyes peeled for regulatory shenanigans. Even when the Trump administration doesn\u2019t abuse FCC and DOJ energy to assist Ellison, they\u2019ll actually abuse regulatory merger approval energy to try to pressure Netflix to kiss their asses in new and problematic methods (see: CBS<\/a>, Verizon<\/a>). And Netflix, no stranger to throwing ethics under the bridge when convenient<\/a>, will very doubtless be pleased to oblige.<\/p>\n

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\tFiled Below: competition<\/a>, consolidation<\/a>, doj<\/a>, larry ellison<\/a>, media<\/a>, mergers<\/a>, video<\/a>
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Firms: netflix<\/a>, warner bros. discovery<\/a>\n<\/p>\n<\/p><\/div>\n