US DOJ probes Warner Bros sale impact on theaters
The U.S. Justice Department has begun examining how a potential sale of Warner Bros Discovery could affect movie theaters and cinema audiences.
Government lawyers have reportedly contacted major U.S. theater chains in private discussions to gather information about whether a deal could reduce the number of films released in theaters or otherwise harm moviegoers, News.Az reports, citing Reuters.
Reuters could not independently verify the report, and both Warner Bros Discovery and the Justice Department did not immediately respond to requests for comment.
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The scrutiny comes amid an escalating takeover battle in Hollywood. Warner Bros recently rejected Paramount Skydance’s latest $30-per-share hostile bid but gave the rival studio seven days to submit a final improved offer that could challenge an existing agreement with Netflix.
Paramount has criticized Warner Bros’ board actions as unusual and said it plans to continue pursuing its tender offer while opposing the Netflix deal. The company also intends to nominate directors at Warner Bros’ upcoming annual meeting.
Warner Bros is currently preparing for a March 20 shareholder vote on the proposed Netflix transaction covering its streaming and studio businesses.
If approved, the broader restructuring would follow Warner Bros’ planned spin-off of its Discovery Global cable networks, including CNN, TLC, Food Network, and HGTV, into a separate publicly traded company.
Industry voices have already weighed in. Filmmaker James Cameron previously warned that a sale of Warner Bros to Netflix could be harmful to the traditional cinema business.
The Justice Department’s interest signals growing regulatory attention on how major media mergers could reshape film distribution and the future of theatrical releases.
By Aysel Mammadzada
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