A proposed multi-billion dollar acquisition by the streaming service Netflix is now the subject of a consumer class-action lawsuit. The legal action, filed in a U.S. court, seeks to block the company’s planned purchase of Warner Bros Discovery’s studio and streaming assets, a deal valued at approximately $72 billion.
The lawsuit, brought by a subscriber to the Warner Bros-owned HBO Max platform, contends that the consolidation would substantially lessen competition within the U.S. subscription video-on-demand market. It argues the transaction would remove a key competitor—HBO Max—and grant the acquiring company control over major entertainment franchises.
The legal filing coincides with increased scrutiny of the deal from lawmakers and the emergence of a competing, unsolicited offer for Warner Bros Discovery from another media conglomerate. The board of the target company has stated it will evaluate all proposals.
In a statement, Netflix dismissed the lawsuit as without merit. Consumer-led antitrust lawsuits, while permitted under U.S. law, are known to face significant legal challenges to proceed.
The outcome of this legal proceeding and the broader regulatory review could significantly reshape the competitive landscape of the streaming entertainment industry.