Netflix and Warner Bros. Discovery (WBD) recently announced a definitive agreement under which Netflix will acquire WBD. In a new insight, Director of Competition Policy Fred Ashton discusses the deal, its potential impact on streaming options, and why it is likely ripe for an antitrust investigation.

Key points:

• On December 5, Netflix emerged as the winner in a months-long bidding war for WBD, beating out rivals Paramount and Comcast; Paramount nevertheless continues to pursue WBD.
• The $82.7-billion deal would combine Netflix’s industry-leading subscriber base with WBD’s studio, deep content catalogue, and its third-ranked streaming service, HBO Max.
• The deal has met with resistance across the political spectrum – including from President Trump; the inevitable regulatory review conducted by either the Department of Justice or Federal Trade Commission should focus on the consumer effects: prices, output, and innovation.

Read the analysis.