Democrats Push DOJ To Investigate Warner Bros. Discovery Merger, Say Deal Is Responsible For 'Hollowing Out An Iconic American Studio'

Democrats are asking the Department of Justice (DOJ) to investigate Warner Bros. Discovery Inc (NASDAQ: WBD) over anti-competitive practices. 

Four Democrats have asked the DOJ to review the Warner Bros. Discovery merger, saying that the deal is responsible for “hollowing out an iconic American studio,” reports Los Angeles Times. 

In a letter, Representatives Joaquin Castro, David Cicilline, and Pramila Jayapal, along with Senator Elizabeth Warren, wrote that the merger appeared to allow the company to adopt practices “that reduce consumer choice and harm workers.”

The Democratic politicans cited job cuts at CNN, including canceling CNN+ and many other projects.

“The antitrust laws promote consumer choice, product variety, and industry innovation. Accordingly, if a consummated merger results in dramatically less available content and discourages innovation, the merger should be reassessed,” the Democrats wrote in a letter.

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In a statement, Castro said the DOJ should look at the Warner Bros. Discovery merger as an example of why some deals should not be approved. The company's executives had previously announced the decision to cancel the $90 million film "Batgirl," claiming that it did not perform well with test audiences.

“For the sake of a tax write-off, because the company is carrying so much debt as a result of the merger, they canceled it,” Castro said of the decision. “If there had been no merger, that movie would have ended up going to theaters and on the streaming platforms.”

Last year, on April 8, Discovery, Inc. and AT&T Inc. (NYSE: T) announced that they had closed their transaction to combine the WarnerMedia business with Discovery. 

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