Nov 21 (Reuters) - Paramount Skydance ( PSKY ), Comcast ( CMCSA )

and Netflix ( NFLX ) are bidding to buy Warner Bros

Discovery ( WBD ), Reuters reported on Thursday, but each

company's bid faces its own political and regulatory risks.

Factors to watch include market share imbalances each bidder

could bring, investors and public comments by U.S. President

Donald Trump or his administration about each company.

The White House could not immediately be reached for

comment.

Political Risk

Paramount Skydance ( PSKY ):

Paramount may have the inside track because of its White House

connections and the significant cash the world's second-richest

person, Larry Ellison, can provide Warner Bros Discovery ( WBD ) to

close the deal. His son, Paramount CEO David Ellison, enjoys

Trump's favor, which could help smooth regulatory hurdles.

Democratic Senators Elizabeth Warren, Bernie Sanders and Richard

Blumenthal worry approval of the deal could be tainted by

political favoritism, citing Paramount Global's $16 million

donation to Trump's Presidential Library. The payment, made

prior to a merger with Skydance that placed Ellison at the media

company's helm, settled a lawsuit Trump brought over edits to a

"60 Minutes" interview.

Still, if the bid includes foreign investors, the size of

their potential stake could trigger a review by the Committee on

Foreign Investment in the United States. The merging of

Paramount's and Warner Bros' cable television networks could

raise concerns about market concentration for the DOJ.

Outside the U.S., regulators would also weigh in under

foreign direct investment regimes, while European authorities

would examine media plurality rules given the combination of CNN

and CBS.

Comcast ( CMCSA ):

The Philadelphia-based cable giant faces a different political

climate. Trump has repeatedly denigrated the company over its

unit NBC's coverage of his second term in office, calling it

"Concast," and criticized its Chairman Brian Roberts.

That hostility could complicate the DOJ's posture, though

any opposition would need to be grounded in law and competition

concerns rather than White House preference.

The DOJ sought to block AT&T's $85.4 billion acquisition of

Time Warner, whose CNN attracted Trump's ire during his first

term in the White House. A federal judge ultimately cleared a

path for the deal in 2018.

Netflix ( NFLX ):

The streaming leader has its own potential political

struggles. In October 2025, the Pentagon criticized "Boots," a

series about a gay Marine, according to the Hollywood Reporter.

"We will not compromise our standards to satisfy an ideological

agenda, unlike Netflix ( NFLX ) whose leadership consistently produces

and feeds woke garbage to their audience and children," a

Defense Department representative said.

Even before the bids were in, Republican Senator Roger Marshall

and Representative Darrell Issa warned that allowing Netflix ( NFLX ) to

take over the company would hand it the content rights of HBO

Max and Warner Bros, which they said could raise prices and

decrease choice for consumers.

Market dominance, however, is in the eye of the beholder.

YouTube accounts for more television viewing in the U.S. than

its closest rival, Netflix ( NFLX ), according to Nielsen.

Competition and Antitrust Risk

Given past practice, the Justice Department would likely have

antitrust oversight of any deal. Warner Bros Discovery ( WBD ) does not

hold broadcast TV assets and as a result, Federal Communications

Commission Chair Brendan Carr would likely not have

jurisdiction.

Paramount Skydance ( PSKY ):

A merger with Warner Bros Discovery ( WBD ) would unite two major

Hollywood studios, two streaming platforms (HBO Max and

Paramount+) and two news operations (CNN and CBS). Exhibitors

are likely to worry about the number of films reaching theaters,

with Comscore estimating the combined entity would control 32%

of the U.S. and Canadian box office, based on 2025 revenue.

The creative community may also face reduced employment

options if there are fewer movies or if, for example, CBS News

and CNN were combined. Sports rights concentration - CBS and TNT

under one roof - could potentially raise prices for consumers.

Comcast ( CMCSA ):

Combining Universal Pictures with Warner Bros Studios would

create an even larger theatrical powerhouse, accounting for more

than 43% of the North American box office, according to

Comscore. That level of market share could alarm regulators and

exhibitors, raising questions about diminished opportunities for

filmmakers and talent.

The DOJ would need to assess whether such

consolidation harms competition in theatrical distribution.

During Trump's first term, the DOJ approved a similarly sized

deal - Walt Disney's ( DIS ) acquisition of 21st Century Fox,

which brought together two film studios that at the time

represented a combined 38% of the domestic box office, according

to Comscore.

Netflix ( NFLX ):

The streaming leader's bid would not affect theatrical

releases but would reshape the subscription video market.

(Netflix ( NFLX ) will continue to distribute movies into theaters, a

source familiar with the matter said, confirming a Bloomberg

report). Adding HBO Max's 128 million subscribers to Netflix's ( NFLX )

more than 300 million would create a formidable player.

Regulators may ask whether such scale limits consumer

choice, though the market definition is contested: YouTube,

TikTok and other platforms command significant viewing time. The

DOJ would need to decide whether Netflix's ( NFLX ) dominance constitutes

a threat to competition or simply reflects evolving consumer

habits.