- State attorneys general, led by two Republicans, oppose Netflix's Warner Bros. takeover
- Concerns include higher prices, less reliability, and reduced entertainment innovation
- The merger could harm the theater industry due to Netflix's limited theatrical releases
State attorneys general led by two Republicans are raising concerns about the proposed takeover of the Warner Bros. studios by Netflix Inc., saying it will harm consumers.
Mike Hilgers of Nebraska and Austin Knudsen of Montana said in a letter to the US Justice Department that a deal between the streaming giant and Warner Bros. Discovery Inc. will result in higher prices, less reliability and less innovation in the entertainment industry.
They also said the merger will be “disastrous” for the theater industry, citing Netflix's historic reluctance to put its movies in cinemas. A total of 11 attorneys general signed the letter, which is dated Feb. 24.
Netflix has pledged to release Warner Bros. movies in theaters exclusively for 45 days. The company is the largest movie distributor in the world. It released more than 100 films last year, including more than a dozen that received limited theatrical runs.
The company has grown to more than 325 million paying subscribers worldwide by offering consumers an alternative to expensive cable-TV packages and letting viewers binge-watch whole seasons of shows rather than wait for new episodes every week.
It's vying to acquire the Warner Bros. studios and HBO business in a takeover battle with Paramount Skydance Corp. Netflix is offering $27.75 a share for those divisions of Warner Bros., which also plans to spin off its cable TV networks to investors. Paramount is offering $31 a share for all of Warner Bros. Discovery.
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