President Donald Trump announced he will personally participate in the federal review of Netflix’s massive acquisition of Warner Bros. Discovery assets. The President raised significant concerns over the proposed merger’s impact on market competition. This move immediately thrusts the nearly $83 billion transaction into an intense political spotlight.
Netflix recently agreed to purchase the film and television studios, along with the streaming division HBO Max, from Warner Bros. Discovery. This deal seeks to combine the global streaming leader with one of Hollywood’s most revered content libraries. The merger would grant Netflix control over blockbuster franchises such as Harry Potter, the DC Comics collection, and thousands of classic films.
The President made his comments while arriving at the Kennedy Center Honors. He confirmed that the streaming giant already holds a “very large market share.” Combining the two companies would dramatically increase this dominance, he noted. Trump explicitly called the market concentration a potential “problem.”
Despite his reservations, the President offered strong praise for Netflix co-CEO Ted Sarandos. Trump called the executive “fantastic” and highlighted his historic success in the entertainment industry. The President confirmed a recent meeting with Sarandos at the Oval Office. However, Trump made it clear that the meeting guaranteed nothing regarding the deal’s final outcome.
Federal authorities, including the Justice Department’s antitrust division, will conduct a deep investigation. Antitrust experts believe the combined entity’s market share could exceed a critical 30% threshold. This figure often triggers major challenges from regulators. Critics fear the deal could result in higher prices for consumers and fewer content choices overall.
The complexity of the deal is further amplified by the scope of the assets. The transaction specifically excludes Warner Bros. Discovery’s cable channels. Major news and entertainment networks, including CNN and Discovery, will be spun off into a separate entity before the sale closes. This structure intends to simplify the regulatory path, but the White House’s skepticism complicates matters.
The proposed acquisition beat out competing bids from other media giants, including Comcast and Paramount Skydance. The rivalry itself highlighted the intense race to consolidate content in the streaming age. Paramount’s bid was backed by David Ellison, a noted supporter of President Trump.
The regulatory process will hinge on how the government defines the relevant market. Netflix plans to argue that its competition extends beyond traditional subscription video. The company will cite platforms like YouTube and TikTok as competitors. Including these user-generated content sites would lower Netflix’s perceived market share.
The administration’s intervention signals a tough road ahead for the merger. Netflix has already demonstrated its commitment to the deal. They offered a substantial $5.8 billion breakup fee should regulators block the transaction. The final decision will set an important precedent for future consolidation across the technology and media sectors. Industry observers expect the review process could last between a year and eighteen months. This ongoing political and regulatory battle will keep Hollywood on edge.
