The Scoop
A key Republican senator Friday joined the mounting opposition in Washington to Netflix’s takeover of Warner Bros. Discovery.
Sen. Tim Scott (R, S.C), chair of the National Republican Senatorial Committee and a close White House ally, said the deal raises “significant antitrust problems” and could hurt “moviegoers, on-camera talent, writers, producers, and everyone who loves the entertainment industry.”
In a letter to the Trump administration’s antitrust regulators, Scott said the $83 billion merger risks hurting consumers by entrenching Netflix, which “seems to have the power to increase prices regularly,” as the dominant streaming app. It would also leave Hollywood showrunners with fewer buyers and “create a crisis for brick-and-mortar movie theatres,” Scott wrote. That echoes concerns by Hollywood groups including the screenwriters’ guild and TV unions.
“The transaction warrants rigorous antitrust review under all applicable antitrust merger and monopolization laws and, to the extent appropriate, a lawsuit to block it,” Scott wrote in the letter, which was sent to the Justice Department and the Federal Trade Commission and reviewed by Semafor.
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Scott’s letter comes as congressional opposition to the deal has increased among members of both parties. In an interview with Semafor earlier this week, Sen. Mike Lee said he has “grave doubts” about Netflix’s bid, while Senate Majority Leader John Thune told reporters he had concerns about Paramount’s bid.
Across the aisle, a group of Democratic congressional members sent a letter to the WBD board saying that they had national security concerns about Paramount’s foreign financing, and warning that a future Democratic administration could move to retroactively unwind a merger between Paramount and WBD. Senators Elizabeth Warren and Chris Murphy said they have major concerns about both bids.