On Sunday, President Donald Trump voiced concerns over a $72 billion merger between Netflix and Warner Bros. Discovery that could reshape the streaming landscape.
Netflix‑Warner Bros. Discovery Deal
Netflix announced on Friday that it intends to acquire Warner Bros. Discovery’s film studio, HBO, and the streaming service HBO Max. If approved, the deal would also grant Netflix access to decades of films and shows housed in the Warner Bros. Pictures archive. The transaction would exclude cable networks such as CNN and TNT, which remain under Warner Bros. Discovery ownership. When debt is factored in, the total value of the merger rises to more than $82 billion.
Trump’s Antitrust Concerns
“Well, that’s got to go through a process, and we’ll see what happens,” Trump told reporters as he walked the Kennedy Center Awards’ red carpet. He added, “They have a very big market share,” referring to Netflix, and noted that adding Warner Bros. would “increase that share a lot.” Trump said he would consult “some economists” before granting his stamp of approval and added, “I’ll be involved in that decision, too.”
Regulatory Hurdles
Because neither Netflix nor Warner Bros. owns broadcast stations, the merger does not require Federal Communications Commission approval. However, it will likely need clearance from the Department of Justice’s antitrust division, as well as from the European Commission and other international regulators.
Sarandos Meets the President
Earlier on Sunday, Bloomberg reported that Netflix co‑CEO Ted Sarandos visited the White House in mid‑November to discuss the potential deal. Trump confirmed the meeting, saying, “I met with Ted, I think he’s fantastic.” He added, “He was in the Oval Office last week,” and noted that Sarandos made no promises to him.
Amazon’s MGM Acquisition
Trump compared Netflix’s success to that of MGM, a studio now owned by Amazon. Amazon purchased MGM during the Biden administration, which did not challenge the takeover.
Paramount‑Skydance Merger Context
In July, the Trump administration approved a billion‑dollar merger between Paramount Global and Skydance. That approval followed a contentious back‑and‑forth involving the president, Paramount agreed to pay $16 million to the president’s future presidential library over an interview CBS News conducted with former Vice President Kamala Harris, and to end its diversity, equity and inclusion programs in accordance with FCC requirements.
Competition with YouTube
Industry analysts expect Netflix to argue that it competes against Google’s YouTube for market share, with YouTube often ranked as the most‑used streaming app by U.S. consumers.
Senator Warren’s Criticism
Senator Elizabeth Warren, D‑Mass., called the Netflix‑Warner Bros. Discovery announcement an “anti‑monopoly nightmare” on Friday.
Netflix’s Evolution
Netflix began as a DVD‑by‑mail company and has grown into a subscription‑based streaming service that reaches more than a half‑billion people across 190 countries in 50 languages.
Key Takeaways
- The Netflix‑Warner Bros. Discovery merger could exceed $82 billion when debt is included.
- President Trump expressed antitrust concerns and plans to consult economists before approving the deal.
- The transaction will require approval from the DOJ, European Commission, and other regulators, but not the FCC.
The merger’s outcome will hinge on regulatory reviews and the president’s final decision, potentially reshaping the competitive dynamics of the global streaming market.
