US President Donald Trump has warned that Netflix's $72 billion (£54 billion) takeover of Warner Bros Discovery "could be a problem" due to market share concerns. Trump confirmed he will personally participate in the federal government's decision on whether to approve the mega-deal announced just days ago.
The streaming giant agreed last Friday to acquire Warner Bros Discovery's film and TV studios business, including HBO Max, for $27.75 (£20.79) per share. The acquisition would combine the world's biggest streaming service with one of Hollywood's most storied studios, home to franchises like Harry Potter, Batman, and DC Studios.
Trump raised the concerns when asked about the deal at the Kennedy Center Honours on Sunday. «There's no question about it. It could be a problem,» he said, pointing to Netflix's already dominant position. «They have a very big market share and when they have Warner Bros, you know, that share goes up a lot, so, I don't know.»
The president added: «I'll be involved in that decision, too. But they have a very big market share.» He indicated the deal must «go through a process and we'll see what happens.»
Industry backlash mounts
The Writers Guild of America has urged regulators to block the deal. «The world's largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent,» the union stated. The guild warned the merger would eliminate jobs, depress wages, and worsen conditions for entertainment workers.
Republican Senator Roger Marshall raised similar alarm bells. «Netflix's... attempt to buy Warner Bros would be the largest media takeover in history - and it raises serious red flags for consumers, creators, movie theaters, and local businesses alike,» he said in a statement. Marshall called it a «textbook horizontal Antitrust problem,» warning: «Prices, choice, and creative freedom are at stake.»
Deal structure and competition
The acquisition resulted from an auction process where Netflix beat out competitors including Paramount Skydance and Sky owner Comcast. According to Reuters, Paramount's bid faced funding concerns, while Comcast's offer did not provide as many early benefits.
Warner Bros Discovery must complete a proposed spin-off of its cable channels - including CNN, TBS, and TNT Sports in the UK - before the deal can close. The transaction is expected to be completed late next year, subject to regulatory approval.
Trump praised Netflix chief executive Ted Sarandos, whom he met in the Oval Office last week before the deal was announced. «Netflix is a great company. They've done a phenomenal job. Ted is a fantastic man,» Trump said, calling Sarandos a «great person» who had «done one of the greatest jobs in the history of movies and other things.»
Note: This article was created with Artificial Intelligence (AI).
