Trump cautions that Netflix’s proposed $72 billion purchase of Warner Bros. Discovery’s film studio and HBO streaming networks could pose regulatory and market challenges.
During a Sunday appearance in Washington, D.C., the US president noted Netflix’s substantial market presence and warned that combining the companies’ assets “could be a problem.” Earlier in the week, Netflix and Warner Bros. Discovery announced a deal that would potentially bring franchises such as Harry Potter and Game of Thrones to Netflix, signaling the creation of a major new media entity.
The deal, which remains subject to approval from competition authorities, has sparked debate across the industry. The BBC has sought comments from Warner Bros. Discovery, Netflix, and the White House.
Netflix, which began in 1997 as a DVD-by-mail service, has evolved into the world’s largest subscription streaming platform. If approved, this would be the largest consolidation the film industry has seen in years and would consolidate Netflix’s leading position.
As part of the agreement, popular universes and franchises including Looney Tunes, The Matrix, and The Lord of the Rings would migrate to Netflix.
The U.S. Department of Justice’s antitrust division, which reviews major mergers, could argue the deal breaches competition laws if the combined market share in streaming becomes too dominant.
Speaking at the John F. Kennedy Center, Trump reiterated Netflix’s substantial market share and suggested that the share could rise further if the deal proceeds. He also indicated his personal involvement in deciding whether to approve the merger, emphasizing Netflix’s market influence.
Trump also mentioned that Netflix co-CEO Ted Sarandos recently visited the Oval Office and praised the president’s leadership at the company, calling Sarandos a respected figure with a track record of success in cinema.
Sarandos has acknowledged that the announcement may have surprised some investors, describing it as a strategic move intended to position Netflix for long-term growth.
Some voices within the entertainment industry have criticized the merger. The Writers Guild of America, East and West branches urged blocking the acquisition, arguing that a dominant streaming platform absorbing a major competitor would run afoul of antitrust principles and could jeopardize jobs, suppress wages, worsen working conditions for entertainment workers, raise consumer prices, and reduce content diversity and volume for audiences.
