Trump questions power of an expanding streaming giant
US President Donald Trump warns that Netflix’s planned 72bn-dollar takeover of Warner Brothers Discovery could create serious problems. He tells an audience in Washington that Netflix already holds a large market share and that the merged companies’ size could become an issue. The companies announce on Friday that they reached an agreement to bring Warner franchises like Harry Potter and Game of Thrones to Netflix, creating a new media powerhouse. The deal still needs approval from competition authorities. A media request to the parties and the White House receives no reply.
Netflix aims to secure its leading position
Netflix grows from a DVD-by-mail service in 1997 into the world’s biggest subscription streaming platform. The planned deal, one of the largest in the film industry in years, would reinforce its top position. Several global franchises, including Looney Tunes, The Matrix and The Lord of the Rings, would move to Netflix under the agreement. The companies expect the deal to close after Warner Bros completes its planned split in the second half of 2026.
Regulators assess antitrust risks
The US Justice Department’s competition division may argue that the deal breaks antitrust rules if the combined market share becomes too large. Trump says at the Kennedy Center that Netflix already holds a very big market share that would rise significantly if the deal proceeds. He states that he will personally take part in the approval process and repeatedly stresses Netflix’s market strength.
Trump praises Netflix executive Sarandos
Trump says that Netflix co-chief Ted Sarandos recently visited the Oval Office and praises his work. He calls Sarandos a highly respected figure who has delivered one of the strongest achievements in film history. Sarandos admits that the agreement may have surprised investors but says it gives Netflix a chance to build success for decades.
Industry experts highlight structural differences
Media executive Blair Westlake says in a radio interview that the key antitrust issue lies in the combination of Netflix with the HBO streaming business of Warner Brothers. He explains that Netflix does not engage in studio production on the scale of Warner Brothers and that Netflix’s film and TV library remains far smaller. Westlake believes the deal will eventually receive approval but expects some concessions.
White House influence shapes the negotiation path
Bill Kovacic, a former chair of the Federal Trade Commission, says that Trump’s comments mean that negotiations over the deal will run through the White House. He argues that this could lead to an unprecedented level of presidential control over a process that once involved only technical merger analysis.
Netflix wins over rivals for the agreement
Netflix beats competitors including Comcast and Paramount Skydance to secure the agreement with Warner Bros. Paramount Skydance, led by David Ellison, previously tried to buy all of Warner Bros, including its cable networks. Warner Bros rejects that proposal before putting itself up for sale. David Ellison’s billionaire father, Larry Ellison, remains a close ally of Trump.
Writers’ unions demand that the merger be blocked
The Writers Guild of America’s East and West branches call for the merger to be stopped. They argue that the world’s largest streaming platform absorbing one of its strongest competitors undermines the purpose of antitrust law. They warn that the outcome would cost jobs, lower wages, worsen conditions for entertainment workers, raise prices for viewers and reduce the volume and diversity of content.
