HBO Max subscriber sues Netflix to halt merger

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Let the legal battle begin.

A Las Vegas HBO Max customer filed a lawsuit against Netflix on Monday, arguing that Netflix’s planned purchase of assets from Warner Bros. Discovery could lead to less competition and higher prices for streaming subscribers.

Last week, Netflix announced it will acquire Warner Bros. Discovery’s film and television operations, including its studio lot and the HBO and HBO Max streaming services, for $27.75 per share, totaling $72 billion. The deal also includes taking on over $10 billion of Warner Bros.’ debt, bringing the total value to $82.7 billion.

Michelle Fendelander is suing, arguing that the proposed deal would reduce competition in the streaming market. She’s requesting the court either block the deal entirely or find a way to lessen its potential negative impact on competition.

As a movie and TV lover, I’m really concerned about what’s happening with streaming. This lawsuit argues – and I tend to agree – that when companies like Warner Bros. Discovery merge, we, the people who pay for services like HBO Max, end up losing out. Basically, less competition means higher prices and worse quality shows and movies for our money. The case was filed in court in San Jose, and it’s hoping to become a class-action, meaning it could cover a lot of us subscribers.

Netflix dismissed the lawsuit as without merit, claiming it was simply a way for lawyers to capitalize on the publicity surrounding the deal.

Hollywood Inc.

Netflix shares dropped around 3% on Monday because investors are worried a potential bid for Paramount could complicate Netflix’s efforts to acquire assets from Warner Bros. Discovery.

Netflix, the streaming service based in Los Gatos, California, has generally been considered the leader in the competitive streaming market. This is largely because it started offering streaming content before most other companies and has a particularly effective system for recommending shows and movies. If Netflix were to acquire assets from Warner Bros. Discovery, it would gain rights to popular franchises like Batman, Game of Thrones, and Harry Potter. Netflix has also stated that it will continue to release Warner Bros. movies in theaters as previously planned.

Fendelander and other industry experts worry that Netflix buying one of its competitors could harm the entertainment industry by reducing the amount of competition.

According to the lawsuit, ending this competition will probably mean less content is created, and what is available will be less diverse and of lower quality. It could also limit the range of different creators featured on popular streaming services. Interestingly, the person filing the lawsuit, Fendelander, has never actually used Netflix.

Streaming services have been gradually increasing their prices, and experts predict these costs will likely continue to rise.

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People are now spending an average of $70 a month on streaming services like Netflix and Disney+, up from $48 just a year earlier, according to a new report from Deloitte.

Netflix leaders stated they think buying assets from Warner Bros. Discovery will be good for everyone involved.

During a recent investor call, Netflix Co-CEO Greg Peters explained that the company’s plans will lead to benefits for everyone involved. He stated that customers will have more choices, creators will have more opportunities, and shareholders will see increased value. Ultimately, Netflix aims to deliver compelling stories, innovative technology, and a wider range of options to viewers around the world.

Hollywood Inc.

Ted Sarandos, now a top executive at Netflix, wasn’t always a Hollywood insider. He started as a video store manager in Arizona and has since become one of the industry’s most powerful figures.

At a UBS conference on Monday, Peters noted that even with the content it’s buying from Warner Bros. Discovery, Netflix’s share of U.S. television viewership would still be less than that of YouTube.

It’s still uncertain if the deal will be finalized, but Netflix is optimistic. However, Paramount announced on Monday that it plans to make a competing offer directly to its shareholders.

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2025-12-10 01:31