Netflix and Paramount each met with European regulators on Tuesday over their respective pursuit of Warner Bros., although one of them reportedly got a cooler reception.
That’s according to Semafor, which noted that some regulators expressed concern about the concentration of power that Netflix would wield after the deal closes. The report also said that regulators were receptive to both Paramount and Netflix’s arguments.
A Netflix spokesman confirmed the meeting, but didn’t comment on the contents of the discussion.
The meetings are a reminder that while much of the regulatory attention has been focused in the United States and President Trump’s Department of Justice, any deal with Warner Bros. will also need approval overseas. While Netflix has a deal to acquire Warner Bros.’ studio and streaming assets, Paramount has launched a hostile bid in an attempt to purchase the entire media company.
One of Paramount’s arguments has been that it would be able to navigate the regulatory approval process faster since there is less concentration of power relative to Netflix, which is a giant in the industry. Netflix is the top streaming service in the U.S. and a global leader, while WBD’s HBO Max is the third-largest in the U.S., but also has aggressively expanded its presence overseas.
Paramount+ is behind HBO Max, and is considerably smaller.
Netflix co-CEO Ted Sarandos previously expressed confidence in the company’s ability to get regulatory approval for its deal.
Spokesmen for the European Commission and Paramount weren’t available for comment.
The discussions happened as the war for Warner Bros. heats up, with Paramount suing Warner Bros. for more information and starting a proxy war for control of the company, and Netflix considering changing its offer to all cash instead of a mix of cash and stock.
