Lawmakers Want Justice Department To Investigate Warner Bros. Discovery, Claiming Merger Harmed Workers And Reduced Content Choice

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Four Democratic lawmakers want the Justice Department to investigate Warner Bros. Discovery, claiming that the merged company has harmed workers and reduced consumer choice. Sen. Elizabeth Warren (…

“The company has the incentive and ability to eliminate broad swaths of its workforce, leaving workers with fewer choices for employment and advancement,” the lawmakers wrote in their letter. . They cited the layoffs over the past year, including the shutdown of CNN+, as well as later cuts at CNN and in areas like ad sales.

It would be unusual for the Justice Department to essentially reopen a review of a merger so shortly after it has been completed, but the lawmakers appear to have been bolstered by Kanter’s comments on the DOJ’s concerns over the impact of consolidation on content creators and workers, not just on consumers.

Last year, Justice Department successfully challenged the proposed Penguin Random House merger with Simon & Schuster on the grounds that it would ultimately harm authors. After a federal judge ruled in the government’s favor, the companies abandoned that transaction. Arguing that the merger has led to the “hollowing out” of an “iconic American studio,” the lawmakers also cited the cancellation of projects and the removal of content from the HBO Max platform. They wrote that “audiences will never see such projects like‘deep into post-production,’ despite consumer outcry, reportedly to allow WBD to claim a taxA Warner Bros. Discovery spokesperson declined to comment. The company is not unique in embarking on recent mass layoffs.

Warner Bros. Discovery is planning to unveil its new strategy for direct-to-consumer streaming on Tuesday.

 

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zaslav is already regretting canceling batgirl

Harmed workers and reduced content choice? Did these 'lawmakers' get Disney and WBD confused?

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