The proposed $82.7 billion acquisition of Warner Bros. Discovery's studio and streaming assets by Netflix is facing intense scrutiny. A coalition of 11 state attorneys general officially called upon the Department of Justice on Tuesday, February 24, 2026, to conduct a "thorough and exacting" antitrust review of the deal. They voiced significant concerns regarding the potential for anti-competitive impacts across the entertainment landscape.

Led by Nebraska Attorney General Mike Hilgers and Montana Attorney General Austin Knudsen, the group includes attorneys general from Alabama, Alaska, Iowa, Kansas, North Dakota, South Carolina, Tennessee, Utah, and West Virginia. They warned that allowing the deal to proceed could lead to "undue market concentration that stifles competition," potentially resulting in "higher prices, lower reliability, and less innovation" for American consumers. The attorneys general also raised concerns about negative impacts on the theatrical exhibition industry, which has been struggling.

The Department of Justice has already initiated an investigation, issuing civil investigative demands to gather input from various industry players, including theater owners, filmmakers, and producers. This probe is examining whether the proposed merger violates Section 7 of the Clayton Act or Section 2 of the Sherman Act, statutes aimed at preventing monopolies and promoting competition.

In response to the growing regulatory concerns, Netflix Chief Legal Officer David Hyman stated that Netflix operates in an "extremely competitive market" and dismissed any claims of it being a monopolist as "unfounded." He affirmed that Netflix does not "hold monopoly power nor engage in exclusionary conduct" and is committed to cooperating with regulators. Warner Bros. Discovery shareholders are slated to vote on the Netflix agreement on March 20, 2026.