Republican Attorneys General Go On Netflix-Warner Bros. Deal Offensive

Hollywood Reporter

by Winston Cho

February 25, 2026

AI-Generated Deep Dive Summary

A coalition of Republican state attorneys general is urging federal regulators to closely scrutinize Netflix’s proposed $4.5 billion acquisition of Warner Bros. Discovery, warning that the merger could create a monopolistic powerhouse in the streaming industry. They argue that the deal would stifle competition, lead to higher prices for consumers, and reduce innovation—a concern echoed by prominent figures like filmmaker James Cameron, who has endorsed Paramount’s competing bid for Warner Bros. The attorneys general, led by those from Montana, Nebraska, and other states, are calling on the Justice Department to review the merger under antitrust laws, including the Clayton Act and Sherman Act, which prohibit mergers that substantially reduce competition or create monopolies. The letter highlights concerns that Netflix’s dominance could lead to fewer content licenses for rival streaming services, potentially forcing them to remove popular shows and movies. This, in turn, could result in higher subscription prices for consumers while limiting access to diverse content. The attorneys general also point to Cinema United, a trade group representing major theater chains, which describes the proposed merger as “culturally catastrophic” due to its potential impact on movie theaters. They argue that Netflix’s business model, which increasingly prioritizes direct-to-streaming releases, conflicts with traditional theatrical windows and could further disadvantage an already struggling industry. Paramount has positioned itself as a more attractive suitor for Warner Bros., offering a $7 billion breakup fee and a revised $31-per-share bid. The company’s leadership, led by David Ellison, is confident in its ability to navigate regulatory hurdles, presenting the deal as a quicker and less risky path to approval compared to Netflix’s proposal. However, the attorneys general warn that allowing the merger could have long-term negative consequences for consumers and competition in the entertainment industry. The legal battle over Warner Bros.’s acquisition highlights the broader stakes in the streaming wars. With multiple major players vying for control of valuable content libraries, antitrust concerns are taking center stage as regulators weigh the potential impact on innovation, consumer choice, and cultural institutions like movie theaters. The outcome could reshape the entertainment landscape, influencing everything from content distribution models to pricing strategies. For consumers, this means the stakes are high—whether they’ll see more competition, lower prices, or fewer options in the streaming era.

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Originally published on Hollywood Reporter on 2/25/2026