Las Vegas-Based HBO Max Subscriber Sues Netflix Over $72 Billion Warner Bros. Deal

An HBO Max subscriber has filed a class-action suit implicit Netflix’s projected $72 cardinal acquisition of Warner Bros.

Warner Bros.-owned streaming level HBO Max includes everything from Game of Thrones to Harry Potter, James Gunn's DC Universe to Barbie, and its contented is expected to beryllium added to Netflix if and erstwhile the woody goes through.

The lawsuit, filed by a Las Vegas-based HBO Max subscriber who has ne'er been a Netflix subscriber, argues that the woody threatens to trim contention successful the U.S. subscription video-on-demand market, and seeks to artifact the acquisition.

Netflix’s connection has sparked a pugnacious effect from immoderate members of Congress, and it is expected to look important scrutiny nether antitrust laws. Paramount, meanwhile, has launched a hostile bid worthy $108.4 cardinal successful the anticipation of stealing Warner Bros. retired from nether Netflix.

According to the LA Times, HBO Max subscriber Michelle Fendelander alleged successful her lawsuit, filed successful a U.S. District Court successful San Jose, that if Netflix’s woody were to spell done it would alteration contention successful the subscription streaming market. The suit asks the tribunal to contented an injunction to forestall the merger from happening.

“American consumers — including SVOD purchasers similar Plaintiff, an HBO Max subscriber — volition carnivore the brunt of this decreased competition, paying accrued prices and receiving degraded and diminished services for their money,” Fendelander’s suit claims.

“The elimination of this rivalry is apt to trim wide contented output, diminish the diverseness and prime of disposable content, and constrictive the spectrum of originative voices appearing connected large streaming platforms.”

In a statement, Netflix deed retired astatine the lawsuit, saying: “We judge this suit is meritless and is simply an effort by the plaintiffs’ barroom to leverage each the attraction connected the deal.”

Last week, Netflix sent subscribers an email of reassurance pursuing the quality of its $82.7 cardinal woody to get Warner Bros., amid interest implicit imaginable terms rises.

The email — reviewed by IGN — promises subscribers that thing is changing “today,” and confirms that HBO Max and Netflix volition proceed to run separately until the woody closes. Netflix goes connected to accidental that determination are a fig of steps it needs to implicit earlier the woody closes, including regulatory and shareholder approval. Netflix’s email does not regularisation retired aboriginal terms rises, but does committedness that existent rank plans volition stay successful spot astatine slightest until the woody goes through. As for erstwhile that volition be, Netflix said it expects to adjacent the transaction successful 12-18 months. So, astatine the earliest, December 2026, but it could beryllium arsenic precocious arsenic summertime 2027. It seems apt that Warner Bros. shows volition get connected Netflix erstwhile the woody closes, and erstwhile that happens a terms emergence seems inevitable.

But volition the woody marque it through? Democrat Senator Elizabeth Warren has called connected the Justice Department to analyse Netflix's buyout of Warner Bros., branding the woody "like an anti-monopoly nightmare." Netflix has said acquiring Warner Bros. would supply amended worth to subscribers and shareholders, but Warren insisted a Netflix-owned Warner Bros. risked occupation losses and higher subscription prices, and said that the Justice Department indispensable present enforce the country's anti-monopoly laws "fairly and transparently."

In an capitalist telephone past week attended by IGN, Netflix CEO Ted Sarandos struck a assured code erstwhile asked astir the deal’s accidental of success. "We're highly assured successful the regulatory process," helium said. "This woody is pro-consumer, pro-innovation, pro-worker, it's pro-creator, it's pro-growth.”

As portion of the aforesaid call, Sarandos said Netflix would proceed to merchandise Warner Bros. movies successful theaters for now, though expected theatrical merchandise windows to shorten implicit clip to go "more idiosyncratic friendly."

One study has claimed Netflix is peculiarly keen to get Warner Bros.' immense contented room arsenic the streamer ramps up its imaginable to connection AI-generation tools and contented successful the future, conscionable weeks aft Disney brag Bob Iger confirmed it would imminently statesman rolling retired AI contented and capabilities via Disney+.

Photo by Vincent Feuray / Hans Lucas / AFP via Getty Images.

Wesley is Director, News astatine IGN. Find him connected Twitter astatine @wyp100. You tin scope Wesley astatine [email protected] oregon confidentially astatine [email protected].