Senators Urge Attorney General Bondi to Recuse from Warner Bros. Antitrust Review

Warner Bros. Discovery CEO David Zaslav announced that the regulatory review of Warner Bros.' agreement with Netflix has commenced, amid a hostile takeover bid from Paramount.

Senators Elizabeth Warren and Richard Blumenthal have urged Attorney General Pam Bondi to recuse herself from overseeing the antitrust review of the Warner Bros.-Netflix deal. In a letter to Bondi, the senators expressed concerns about potential conflicts of interest, noting that Bondi's former employer, lobbying firm Ballard Partners, represents both Paramount and Netflix in seeking approval from the Trump administration. They stated, "The corruption concerns related to this deal extend to your office."

Disclosure forms indicate that Ballard Partners has been representing Paramount throughout the year and began working with Netflix in March. The senators highlighted existing allegations that Ballard has improperly influenced the administration's antitrust decisions.

In response, Department of Justice spokesperson Gates McGavick stated, "All officials at the Department of Justice follow the guidance of career ethics officials." A spokesperson for Ballard Partners dismissed the senators' letter as a "blindly partisan" attack, asserting that the firm has never communicated with the Attorney General about any Department of Justice matter.

The situation underscores the political tensions surrounding a review process that could significantly impact the media and entertainment industry. The outcome will determine the future ownership of Warner Bros. Discovery's assets and test the administration's ability to conduct the process without political favoritism.

President Trump has indicated his intention to be involved in the decision, deviating from the traditional practice of leaving antitrust reviews to Justice Department experts. A DOJ spokesperson informed The Wall Street Journal that Bondi and antitrust division chief Gail Slater would lead the review, prompting Warren and Blumenthal to raise ethical concerns.

At an October hearing, Bondi stated, "I have abided by every ethics standard," when questioned about connections between Ballard's clients and the Justice Department's actions.

Lawmakers from both parties have expressed apprehension about the potential media consolidation resulting from the Warner Bros. deals. Warren described the Netflix deal as an "anti-monopoly nightmare" and the Paramount proposal as a "five-alarm antitrust fire." Some House Democrats have warned that if they gain a majority in the upcoming midterm elections, they may push for divestitures that could undermine the strategic logic of the merger.

On the Republican side, Senator Mike Lee has predicted an "intense antitrust hearing" regarding the Netflix deal.

Netflix has asserted that its acquisition of Warner Bros. would be "pro-consumer, pro-innovation, pro-creator, and pro-growth," offering audiences and creators "even more choice, value, and opportunity."

Meanwhile, Paramount continues to encourage shareholders to accept its $30-per-share takeover offer for all of Warner Bros. Discovery, including CNN. Paramount's leadership has faced both praise and criticism for its close ties to the Trump administration. Warren and Blumenthal wrote that these "aggressive efforts to curry favor with the president" have tainted the bidding process with "the appearance of corruption."

Earlier, the Warner Bros. Discovery board urged shareholders to reject Paramount's bid. Zaslav informed staff, "We continue to have a signed transaction agreement with Netflix and we are working together to close the transaction, subject to regulatory approvals and other closing conditions. That regulatory review process has already begun."