Netflix has been hit with a consumer lawsuit seeking to block the online video giant’s planned $72 billion acquisition of Warner Bros Discovery’s studio and streaming businesses. The proposed class action was filed on Monday by a subscriber to Warner Bros-owned HBO Max who said the proposed deal threatened to reduce competition in the U.S. subscription video-on-demand market.
Some members of Congress have sharply questioned Netflix’s proposal, which is expected to face significant U.S. regulatory scrutiny under antitrust laws. Paramount Skydance on Monday launched a hostile bid worth $108.4 billion for Warner Bros Discovery in a challenge to Netflix’s bid.
Netflix, the world’s largest streaming service, in a statement said, “We believe this suit is meritless and is merely an attempt by the plaintiffs’ bar to leverage all the attention on the deal.”
Lead attorneys for the plaintiff declined to comment.