Democrats ask them Department of Justice (DOJ) to investigate Warner Bros. Discovery Inc WBD about anti-competitive practices.
Four Democrats have asked the DOJ to review the Warner Bros. Discovery merger, saying the deal was responsible for “eroding a legendary American studio.” reports Los Angeles Times.
in one letterRep. Joaquin Castro, David Cicilline and Pramila Jayapal, along with Senator Elizabeth Warren, wrote that the merger appears to allow the company to adopt practices “that limit consumer choice and harm workers.”
Democratic politicians cited job cuts at CNN, including the cancellation of CNN+ and many other projects.
“Antitrust laws promote consumer choice, product diversity and industry innovation. Therefore, if a completed merger results in dramatically less available content and discourages innovation, the merger should be reevaluated,” Democrats wrote in a letter.
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In a statement, Castro said the DOJ should look at the Warner Bros. Discovery merger as an example of why some deals should not be approved. Company executives previously announced the decision to cancel the $90 million film Batgirl, claiming that it did not fare well with test audiences.
“Because of a tax write-off, because the company has so much debt from the merger, they canceled it,” Castro said of the decision. “If there hadn’t been a merger, this movie would have ended up hitting theaters and streaming platforms.”
Last year, on Aug. Discovery, Inc. And AT&T Inc. T announced that they had completed their merger transaction WarnerMedia Shop with Discovery.
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