Trump Sounds Alarm After Netflix Snaps Up Warner Bros
Trump also remarked that the Netflix CEO “has done one of the best jobs in the history of film and other things.”
Quick overview
- U.S. President Donald Trump expressed concerns about Netflix's acquisition of Warner Bros. Discovery due to its potential large market share.
- The $82.7 billion deal would combine two major streaming platforms, impacting the entertainment industry's structure.
- Trump indicated that the federal government will review the merger, emphasizing the need for scrutiny regarding market power.
- Despite praising Netflix CEO Ted Sarandos, Trump acknowledged that the deal could pose significant regulatory challenges.
The U.S. president said the deal will be reviewed by the federal government and could face objections due to its large market share.
U.S. President Donald Trump said that Netflix’s agreement to acquire Warner Bros. Discovery “could be a problem” given the size of the combined company’s market share.
The initiative, valued at USD 82.7 billion, would place two of the world’s largest streaming platforms under the same ownership and give Netflix control of Warner Bros. Discovery’s film and television division, which includes HBO, DC Studios, and the “Harry Potter” universe. The transaction would therefore have a direct impact on the structure of the entertainment industry.
Trump addressed the topic while walking the red carpet at the Kennedy Center Honors, where he answered questions about the deal and other current issues. He explained that the federal government will have to determine whether the merger should be approved. “There’s no question about it,” the Republican president said, suggesting the White House will play a direct role in the final decision.
The president praised Netflix and its CEO, Ted Sarandos, whom he described as “a fantastic man.” Trump noted that he met with Sarandos in the Oval Office the week before the deal, announced on December 5. “I have a lot of respect for him. They’ve done a phenomenal job,” he said.
Donald Trump says the Netflix deal will undergo federal review
Still, Trump emphasized that the size Netflix would reach after absorbing Warner Bros. Discovery warrants serious scrutiny. “It’s a big market share, so we’ll have to see what happens,” he said. When asked whether Netflix should be allowed to buy the studio behind the “Harry Potter” films and the HBO Max service, the president replied, “Well, that’s the question.”
Trump stressed that the resulting market power is one of the most sensitive elements of the review. “They have a very large market share, and when you add Warner Bros.—you know— that share goes up a lot, so I don’t know,” he said. “I’ll also be involved in that decision. But they have a very large market share.”
He added that Sarandos did not offer any special assurances about how the company would operate if the merger were approved, though he reiterated his personal and professional admiration for the executive, whom he called “a great person.” Trump also remarked that the Netflix CEO “has done one of the best jobs in the history of film and other things.”
Despite those compliments, Trump repeated that Netflix’s expansion after acquiring Warner Bros. Discovery will be a matter of debate. “There’s no question about it. It could be a problem,” he said, making clear that the deal will need to undergo a detailed regulatory review before receiving final approval.
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