Netflix’s agreement to acquire the studio and streaming assets of Warner Bros. Discovery for equity value of 72 billion USD has triggered a debate on Wall Street over whether regulators will allow the world’s largest streaming company to grow even bigger in scale.

This means that after successfully winning the fierce bidding war for Warner Bros. Discovery, Netflix now faces antitrust challenges and must convince regulators around the world that this deal will not give it an unfair competitive advantage in the streaming market.

The transaction brings Warner Bros.’ film and television studios, HBO, and HBO Max into Netflix’s global ecosystem, immediately reshaping the competitive landscape.

The merger will reshape the online video content market by combining the number-one streaming platform with the number-four HBO Max service and its hit series such as Game of Thrones, Friends, and DC Universe comic-based franchises.

According to data from JustWatch, after the merger of Netflix and Warner Bros., the combined company will control roughly one-third of the U.S. streaming market. This degree of concentration has already sparked intense criticism.

The enormous content library could raise red flags among antitrust regulators worldwide, who worry that Netflix may gain excessive control over the streaming market. The company faces a lengthy review by the U.S. Department of Justice and may confront lawsuits in U.S. courts seeking to block the deal if it does not adopt certain remedies to secure approval.

Netflix is expected to counter that regulators should not define the market as narrowly as subscription-based streaming, especially since Americans now consume entertainment across a much broader spectrum—from platforms such as YouTube and ad-supported streaming services to games and social video.

Market Commentary:

Netflix may emphasize that acquiring Warner Bros. studios and HBO will not grant it extraordinary market power; instead, it will help the company compete more effectively in an entertainment market that is increasingly fragmented.