Netflix’s Proposed $72 Billion Warner Bros Deal Faces Regulatory Skepticism Over YouTube Rivalry Argument
GeokHub
Contributing Writer
New York, Dec 12 (GeokHub) Netflix’s plan to acquire Warner Bros Discovery in a roughly $72 billion deal — combining its streaming platform with HBO Max and major studio assets — is facing intense scrutiny from antitrust experts, who question the company’s claim that the merger is needed to better compete with YouTube’s dominance in online video.
Netflix has argued that joining forces with Warner Bros will help it rival Alphabet’s YouTube, which Nielsen ranks as the most-watched distributor of online video content. The combined entity would claim a substantial base of roughly 428 million subscribers across Netflix and HBO Max.
However, legal analysts say the U.S. Department of Justice and other regulators are unlikely to view Netflix and YouTube as direct competitors because they operate in different segments of the video market. Netflix’s business centres on paid, scripted content, while YouTube’s platform thrives on user-generated videos and an ad-driven model — with far higher viewing share.
Antitrust attorneys also caution that internal documents — which Netflix must provide early under updated merger review rules — may make or break the company’s defense. If the video-platform argument isn’t clearly supported by Netflix’s own internal analysis, regulators could challenge the narrative that YouTube is a true rival.
