Netflix faces a new hurdle in its massive bid to acquire Warner Bros. Discovery (WBD). On Monday, the streaming giant received its first class-action lawsuit—not from a rival studio, but from an unhappy HBO Max subscriber. Michelle Fendelander, a resident of Las Vegas, filed the complaint in a San Jose federal court, arguing the deal will ultimately hurt viewers and the entertainment industry.
The conflict stems from Netflix’s recent agreement to purchase WBD for a staggering $82.7 billion. If the sale goes through, Netflix gains ownership of HBO Max and heavy-hitting franchises like Harry Potter, Game of Thrones, and the entire DC Comics universe. Fendelander wants the court to block the merger immediately. She argues that combining these two giants destroys competition, which usually leads to one outcome for customers: higher bills for worse service.
“American consumers… will bear the brunt of this decreased competition,” Fendelander stated in the filing. She fears the merger will shrink the variety of creative voices in Hollywood and reduce the number of shows studios produce. She also worries the deal will hurt movie theaters, despite Netflix’s promise to keep releasing films on the big screen.
Netflix quickly dismissed the complaint. A representative called the lawsuit a desperate attempt by lawyers to leverage the media attention surrounding the deal. However, the pressure is mounting. Congress is already scrutinizing the buyout, and reports suggest President Donald Trump may weigh in on whether the merger should proceed.
The situation remains volatile. While Netflix fights to close the deal, a massive $108.4 billion counter-bid from Paramount Skydance sits on the table. With legal battles underway and rivals circling, Netflix’s path to victory is far from guaranteed.
