FCC's Chair Expresses 'Concerns' Over Netflix, WBD Deal

FCC Chairman Brendan Carr has voiced significant concerns about potential competition issues if Netflix (NFLX) acquires assets from Warner Bros. Discovery (WBD), citing the massive scale and further consolidation it would bring to the streaming industry.

In a Bloomberg interview, Carr stated: “There are legitimate competition concerns that I’ve seen raised about [a Netflix] acquisition and just the sheer amount of scale and consolidation you can see in the streaming market.”

Carr praised Netflix's organic growth as "fantastic" but highlighted worries that combining it with Warner Bros.' film and TV studio assets—along with its streaming service—could exacerbate market dominance in an already consolidating sector.

Brendan Carr

By contrast, he expressed far fewer reservations about a potential acquisition of the same Warner Bros. Discovery assets by Paramount Skydance (PSKY). He noted that Paramount+'s smaller streaming footprint makes such a deal less problematic from a competition standpoint.

The FCC lacks direct jurisdiction over a Netflix-Warner Bros. Discovery transaction, as it primarily regulates broadcast television licenses and neither company holds significant FCC-licensed assets in this context.

However, a Paramount Skydance-Warner Bros. merger could fall under FCC review. This stems from Paramount's plans to raise funds from foreign sources to finance the deal, which may trigger FCC oversight related to foreign investment in broadcast-related entities (given Paramount's ownership of the CBS network).