The U.S. Justice Department has called several of the country’s largest movie‑theater chains to private meetings to discuss how a potential sale of Warner Bros. Discovery (WBD) could affect the theatrical release of its extensive film library. The summons, reported by Bloomberg on February 18 2026, comes as the DOJ reviews the proposed merger between WBD and Netflix, which would transfer WBD’s studios and streaming assets to the streaming giant for an enterprise value of about $82.7 billion.
The DOJ’s focus is on whether the sale would reduce the number of new films released in theaters, a concern that could reshape the distribution model for franchises such as Harry Potter, DC Studios, and the broader Warner Bros. catalog. The inquiry is part of a broader regulatory review that also examines the impact of the sale on the competitive landscape of streaming and traditional media. The DOJ’s questions reflect a broader trend of antitrust scrutiny in the entertainment sector, where consolidation can affect content diversity and distribution channels.
WBD’s sale to Netflix was announced on December 5 2025, and the company has reopened talks with Paramount Skydance, which has offered $108.4 billion for the entire company. Paramount’s bid includes a “ticking fee” of roughly $650 million per quarter if the deal is not closed by year‑end, underscoring its urgency. The DOJ’s probe could influence the terms of any approved merger or even lead to regulatory challenges, making the outcome significant for both WBD and the theater industry.
The DOJ’s inquiry is expected to shape the future of theatrical releases for WBD’s flagship franchises. Netflix has pledged to maintain a 45‑day theatrical window for Warner Bros. films, while the company’s management has emphasized that the sale would not alter the distribution strategy for existing contracts. WBD’s board has unanimously recommended the Netflix merger, citing value creation for shareholders, but has also granted a waiver to engage with Paramount Skydance for a best‑and‑final offer. The DOJ’s findings will therefore be closely watched by investors, theater operators, and content creators.
The market has reacted positively to the ongoing M&A activity, with WBD shares up 2.61 % and Paramount Skydance up 2.71 % on February 17 2026, reflecting investor confidence in the potential upside of the sale and the regulatory review. Analysts note that the DOJ’s focus on theatrical impact signals a broader concern about the future of cinema in a streaming‑dominated era.
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