Bloomberg: US DOJ Investigates Warner Bros' Sale Impact on Theaters

• Government lawyers are seeking information on how a sale would affect the movie-going public and theatrical film availability
• Warner Bros gave Paramount Skydance seven days to submit a 'best and final' offer to top the existing Netflix agreement, which Paramount called 'unusual'
• Filmmaker James Cameron publicly endorsed Paramount's takeover bid and warned that a Netflix sale would be 'a disaster' for the cinema industry

Summary: DOJ Investigates Warner Bros Sale Impact on Theater Industry

The U.S. Department of Justice has initiated private discussions with major theater chains regarding the potential sale of Warner Bros Discovery, according to Bloomberg News. Government lawyers are examining how a sale could affect moviegoers and whether it might lead to reduced theatrical film releases.

Key Developments:

Warner Bros rejected Paramount Skydance's revised $30 billion offer on Tuesday, giving the studio seven days to submit a "best and final" bid to exceed its existing agreement with Netflix. Paramount called Warner Bros' board actions "unusual" but confirmed it would continue opposing the "inferior" Netflix merger and plans to nominate directors at Warner Bros' upcoming annual meeting.

Transaction Details:

A shareholder vote on Netflix's offer for Warner Bros' streaming and studio businesses is scheduled for March 20, 2026. If approved, the merger would proceed after Warner Bros spins off its Discovery Global cable operations—including CNN, TLC, Food Network, and HGTV—into a separate publicly traded entity.

Industry Concerns:

Filmmaker James Cameron, who directed Paramount's "Titanic," publicly endorsed Paramount's takeover bid in November, calling a Netflix sale "a disaster" for the cinema industry. This sentiment appears to align with the DOJ's investigation into preserving theatrical distribution.

Market Implications:

The DOJ scrutiny adds regulatory uncertainty to an already complex media consolidation battle, potentially delaying or complicating any sale. The outcome could significantly reshape the entertainment landscape, affecting theatrical exhibition economics and the balance between streaming and traditional cinema distribution models.