Lawmakers want DOJ to investigate Warner Bros Discovery merger, alleging it harms employees and reduces content choices; Quote the defunct ‘Batgirl’ in the letter

Four Democratic lawmakers want the Justice Department to shut down Warner Bros. Discovery is investigating, alleging that the merged company harmed workers and limited consumer choice.

Sen. Elizabeth Warren (D-CA), Rep. Joaquin Castro (D-TX), Rep. David Cicilline (D-RI) and Rep. Pramila Jayapal (D-WA) said in a letter to Attorney General Merrick Garland and Justice Department Antitrust Chief Jonathan Kanter that the merger appears to have allowed the company to engage in potentially anticompetitive practices which limited consumer choice and affected labor markets.

WarnerMedia and Discovery were combined last year in a deal that was not challenged by the DOJ after a review.

“The company has the incentive and ability to eliminate large portions of its workforce, leaving employees with fewer opportunities for employment and advancement,” the lawmakers wrote in their letter (read it here). They cited last year’s layoffs, including the closing of CNN+, and subsequent cuts at CNN and in areas such as ad sales.

It would be unusual for the Justice Department to essentially reopen a review of a merger so soon after it was completed, but lawmakers seemed encouraged by Kanter’s comments about the DOJ’s concerns about the consolidation’s impact on content producers and employees. not just to consumers.

Last year, the Justice Department successfully challenged Penguin Random House’s proposed merger with Simon & Schuster on the grounds that it would ultimately harm authors. After a federal judge ruled in favor of the government, the companies abandoned the deal.

Lawmakers argued that the merger led to the “hollowing out” of an “iconic American studio,” also citing project cancellations and the removal of content from the HBO Max platform. They wrote that “the public will never see such projects bat girlA $90 million film canceled “deep in post-production” despite consumer outcry, ostensibly to allow WBD to claim a tax break.

A spokesperson for Warner Bros. Discovery declined to comment. The company is not alone in the recent mass layoffs. Disney began laying off 7,000 employees last month. And amid a stream cut, other platforms, including Netflix, have canceled projects and series.

The cancellation of bat girl attracted a lot of attention and anger in the fans last August. Peter Safran, DC Studios’ new co-chairman and CEO, said in February that the film “cannot be released”.

Lawmakers also hinted at plans to raise the cost of HBO Max. “Currently, the plan for the combined streaming service is to have an ad-supported plan at $10 and an ad-free plan between $15 and $16 per month. However, WBD offers consumers a premium subscription that costs $20 per month “for viewers who want to watch HBO’s signature shows in the highest possible quality.” This leaves the question of whether a cheaper platform will be of lower quality than the current product, while consumers pay the same price and lack the transparency to fully evaluate the plans and their relative prices.”

Warner Bros. Discovery plans to launch its new direct-to-consumer streaming strategy this Wednesday.