Elizabeth Warren Raises Alarm as Trump DOJ’s Warner Bros. Merger Review Sparks ‘Influence-Peddling’ Concerns Amid Netflix and Paramount Clash NASDAQ NFLX

Senator Elizabeth Warren (D-Mass.) has raised concerns regarding the Justice Department’s review of the bids for Warner Bros. Discovery, amid a competitive clash between Netflix Inc. (NASDAQ:NFLX) and Paramount Skydance (NASDAQ:PSKY). Warren alleges that the review could be influenced by political favoritism, reflecting a broader risk to U.S. antitrust laws.

Warren Questions DOJ’s Role

Warren expressed her worries about the handling of major media mergers during the Trump administration. She stated that the scrutiny of Warner Bros. Discovery’s bidding process could turn into an “influence-peddling” operation. In a statement on X, she emphasized that U.S. laws exist to prevent this type of acquisition.

• Warren: “We have laws on the books that should block either one of these bids.”
• Highlighting that Warner Bros. mergers illustrate the necessity of antitrust regulations.

Antitrust Laws Remain Vital

Warren reaffirmed the importance of U.S. antitrust policy, which has been in place since the 1800s. She noted that whether the context is the aluminum industry or the film sector, the same regulations must apply:

• “If you’re talking about the aluminum business in the 1950s or the movie business in the year 2025, the same laws still apply.”
• Consolidation poses risks for both consumers and workers.

Furthermore, she criticized Trump for his claim of involvement in the merger review process, stating, “That’s not normal.” Warren insists that law enforcement should proceed based on facts, not political considerations.

Political Connections Under Scrutiny

Warren has also highlighted the political influences surrounding Paramount Skydance’s $108 billion hostile bid for Warner Bros. Discovery. Concerns involve support from Trump associates and funding from Middle Eastern sovereign wealth funds. She raised questions about the impact of foreign investment on major U.S. media outlets, such as CNN and other studios.

Warner Bros. Favors Netflix Offer

Warner Bros. Discovery is urging its shareholders to reject the Paramount offer, branding it as inadequate compared to Netflix’s $82.7 billion merger agreement. The company argues that the Paramount proposal does not meet the criteria of a “Superior Proposal” outlined in their agreement with Netflix.

• Paramount’s bid: $108 billion, backed by financing from Affinity Partners and foreign assets.
• Netflix’s bid: $82.7 billion, emphasizing a strong merger proposal.

Warren’s remarks come as Warner Bros. Discovery showcases positive stock momentum across various time frames, indicating potential resilience in the media market.

With both bids under the microscope, the ultimate decision rests with the Justice Department amidst growing scrutiny over influence and regulatory integrity.