Hollywood
US DOJ investigates Netflix-Warner deal over control of creators
Authorities check if merger could hurt actors, filmmakers, and studios
NEW YORK: The US Department of Justice has intensified its investigation into Netflix’s proposed acquisition of Warner Bros. Discovery. While the deal is valued at approximately $72 billion, federal regulators are looking beyond the price tag. They are specifically examining whether the merger would give Netflix an unfair level of control over filmmakers, actors, and independent production studios.
Government officials have issued subpoenas to various industry players to determine if Netflix uses its market position to dictate one-sided contract terms. The core concern is that a combined Netflix and Warner entity would create a monopsony, a market with only one major buyer. This could leave creators with little choice but to accept lower pay or surrender the rights to their work because there are fewer rival studios to bid for their projects.
This legal pressure has created an opening for competitors. Paramount and Skydance previously offered a higher bid for Warner Bros. but were rejected by the board in favour of Netflix. If the Department of Justice investigation causes significant delays or imposes strict conditions, the Warner board may be forced to reconsider other offers. The probe is currently focusing on how talent contracts differ between streaming platforms and traditional film studios.
Netflix has defended the acquisition by pointing out that it still accounts for less than 10 per cent of total television viewing in the United Kingdom and the United States. To address concerns about the future of cinema, the company has promised to give Warner’s major films a 45-day exclusive release in theatres. Despite these concessions, the government remains focused on whether the deal would ultimately reduce competition in the entertainment industry.
The outcome of this review will likely set a precedent for how big tech and media mergers are handled in the future. If regulators decide that Netflix’s influence over the creative process is too great, they could move to block the deal entirely. For now, the merger remains on hold as investigators interview rival executives and filmmakers to assess the true impact on the Hollywood ecosystem.
Hollywood
Paramount eyes $24bn Gulf support to fund Warner Bros Discovery merger: Reports
Sovereign funds line up funding as media giants chase streaming scale
NEW YORK: Paramount Skydance is in talks to secure nearly $24 billion in equity commitments from Gulf sovereign wealth funds to support its planned takeover of Warner Bros. Discovery, according to a WSJ report.
The funding push comes as Paramount Skydance advances its proposed $110 billion deal for Warner Bros. Discovery, which carries an equity valuation of $81 billion and is expected to close in the third quarter of 2026.
At the heart of the financing plan are three major Gulf investors. Saudi Arabia’s Public Investment Fund is expected to contribute roughly $10 billion, while the Qatar Investment Authority and Abu Dhabi-based L’imad Holding are likely to make up the remainder.
Crucially, the proposed investments are structured as non-voting stakes. This means the Gulf backers would not have direct control in the combined entity, a move designed to ease regulatory concerns in the United States. Paramount executives reportedly do not expect the deal to trigger scrutiny from bodies such as the Committee on Foreign Investment in the United States or the Federal Communications Commission.
If completed, the merger would bring together a formidable portfolio of entertainment and news assets, including CNN and CBS. The combined entity aims to better compete in a fast-evolving media landscape where streaming platforms are steadily pulling audiences away from traditional television.
The deal reflects a broader shift in global media, where scale is increasingly seen as essential to survive the streaming wars. By pooling content libraries, technology and distribution, Paramount Skydance and Warner Bros. Discovery are betting on size and synergy to drive future growth.
The involvement of deep-pocketed Gulf investors also underscores the growing role of sovereign wealth in shaping global media consolidation, particularly at a time when high-value deals demand equally large financial backing.
With shareholder votes and regulatory milestones still ahead, the proposed tie-up remains one of the most closely watched media deals of the year. If it clears the final hurdles, it could redraw the competitive map of the global entertainment industry.
