The acquisition of Warner Bros. Discovery by Netflix is not yet complete. As first reported wall street journalThe US Justice Department has launched its own investigation into the proposed purchase of Netflix, but is particularly interested in whether the streaming giant was involved in any anti-competitive practices. According to the civil summons seen by WSJThe Justice Department is investigating any “excludable conduct on the part of Netflix that would reasonably appear to strengthen market or monopoly power.”
While Netflix had announced plans to acquire Warner Bros. Discovery in December at a value of $82.7 billion, the deal was expected to be completed in 12 to 18 months, subject to necessary regulatory approvals. The DOJ has the power to block the transaction and could signal the agency’s approach to the investigation, which could include proving that Netflix gave its competition an unfair advantage.
Netflix lawyer Steven Sunshine told WSJ This investigation was standard practice and “we have not been given any notice or seen any other indication that DOJ is conducting a separate antitrust investigation.” Netflix also said in a statement that it is “engaging constructively with the Department of Justice as part of its standard review of our proposed acquisition of Warner Bros.” according to WSJThe investigation is still in the initial stages and may take up to a year to complete.
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