Last year, Warner Bros. was acquired. by Discovery Channel, and the resulting merger was more than just messy. Things got off to a surprisingly rocky start cancellation bat girlAnd Since then it has escalated to Several shows are canceled (some not even get air) and get the string pulled out of HBO Max and send it to another placein addition to the standard post-merger layoffs.
according to Delivery timeSenator Liz Warren (R-Calif.), along with Representatives Pramila Jaipal (D-WA), David Ceciline(D-RI, Julian Castro (D-Texas) subpoena the Department of Justice (DOJ) to investigate Warner Bros. Discovery (WBD). in letter newly Both Ministry of Justice antitrust chief Jonathan Kanter and Attorney General Merrick Garland, the four believe WB has since been “emptied” by Discovery, and merger enabled the company toadopting potentially anti-competitive practices that reduce consumer choice and harm workers in affected labor markets.”
further eExamples given in the letter include Multiple shows canceled by WBD shortly after the merger, and The ones that were once green lit but are now basically in development hell, with kill CNN+ broadcast platform. It was all done in an effort to save money, but the representatives and senators also noted that WBD wasn’t finished yet. According to them, there are $3.5 billion in cuts remaining before all is said and done.
“(merger) Taken together, they have enabled the WBD to take drastic measures,” the letter continues, “harming workers and creators in the media and entertainment industry while eliminating the forces of disciplinary competition that provide workers with the freedom to change jobs or negotiate for better wages and working conditions.” (…) cThe cancellations tainted these projects, making them less attractive and marketable to other buyers—consumers would likely not be able to watch shows purchased and then canceled by WBD. WBD’s behavior amounts to a de facto “catch-and-kill” practice, greatly limiting consumer choice.
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The Department of Justice approved the WBD integration without any problem, but he showed his willingness to back down from these matters, As we saw last year with random penguin houses Attempt to acquire Simon & Schuster. When that happened, Kanter said merging the two companies would have “reduced competition, reduced author compensation…And it ultimately impoverished our democracy.” That statement may be what the four lawmakers are counting on to launch a full investigation.
At the time of this writing, Warner Bros. has not yet filed an offer. Discovery commented. The company is expected to hold a conference detailing its new direct-to-consumer streaming plan sometime this week. In the meantime, you can read the full letter from the legislatorers here.
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