Four Democratic lawmakers have written to the Department of Justice to investigate Warner Bros. Discovery and launch an investigation into alleged anti-competitive behaviour. Democratic Representatives Elizabeth Warren, Pramila Jayapal, David Cicilline and Joaquin Castro wrote that the merged company harmed workers and reduced consumer choice. Warner Bros. was formed. Discovery after WarnerMedia’s merger with Discovery Inc. In April 2022.
“We respectfully urge the Department of Justice to investigate the state of competition in the affected labor and consumer markets following the completion of this merger, which appears to have enabled Warner Bros. to impact the labor markets,” the lawmakers wrote in the letter.
Warner Bros. has not responded. Discovery asked TechCrunch for comment.
Lawmakers argue that the new ownership of Warner Bros. Discovery is an “iconic American studio dump”. The letter explains that several projects have been canceled by Warner Bros. Discovery soon after the merger, including “Batgirl” which was canceled even though filming had already been completed. The letter also mentions the cancellation of popular shows such as “Gordita Chronicles” and “The Time Traveler’s Wife”.
In addition, lawmakers note that Primetime Emmy winner J.J. Abrams is now shopping elsewhere for a home for his TV show “Demimonde,” which was initially picked up by HBO and then canceled before production could begin on the project.
The letter indicates that consumers will likely not be able to watch shows that have been purchased and then canceled by the company, and that Warner Bros. Discovery amounts to a “catch and kill” practice that limits consumer choice.
Lawmakers also make clear that the company’s actions leave workers with fewer options for employment and advancement.
“Shortly after the completion of the merger, WBD began to realize a number of cost synergies that were used to justify the merger in the first place — including hundreds of job cuts for workers,” the letter read. First, WBD cut the CNN+ broadcast platform. The CNN+ cut affected about 350 employees, and four months later, CNN laid off an additional 400 employees. WBD also laid off 100 employees in its company’s advertising sales division as another cost-cutting effort related to the merger. In total, the aforementioned cuts affected thousands of people. Notably, the WBD still has $3.5 billion in cuts planned—and that doesn’t bode well for workers.”
The letter ends with a request for the Department of Justice to take another look at the deal and consider the actions the company has taken since completing the merger a year ago. Lawmakers write that they hope to update merger guidelines to ensure they reflect the needs of workers, consumers and content creators in the media and entertainment industry.
The letter comes as Warner Bros. is expected to hold a contract. Discovery has a press event sometime this week regarding its new direct-to-consumer streaming plan.