US President Donald Trump has raised concerns regarding Netflix’s proposed acquisition of Warner Bros. Discovery (WBD), valued at $72 billion. Speaking at an event in Washington on December 7, 2023, Trump indicated that the deal could face significant regulatory challenges due to the potential market dominance it could create in the streaming industry.
Trump stated that the merger “could be a problem,” citing the combined company’s anticipated market share. He emphasized that the deal would require a thorough regulatory process, adding, “That’s got to go through a process and we’ll see what happens.” His comments suggest that he may play a role in the approval process, hinting at his influence over the outcome.
In addition to his public remarks, Trump confirmed he recently met with Ted Sarandos, co-CEO of Netflix. This follows speculation about discussions between the two prior to the announcement of the acquisition. The meeting could indicate Trump’s interest in the deal or Netflix’s efforts to navigate potential regulatory hurdles.
Netflix announced the agreement to acquire WBD on December 5, 2023. If regulators approve the merger, it would allow Netflix access to WBD’s extensive movie studio and streaming networks, significantly enhancing its content library and competitive edge.
The merger is projected to finalize in the second half of 2026, following WBD’s completion of a formal separation of its businesses. However, the deal will not only be scrutinized by Trump but also face rigorous examination from the US Justice Department over antitrust concerns and the European Commission.
The scrutiny surrounding this acquisition reflects broader concerns about consolidation in the streaming industry. As major players continue to merge, questions arise about competition, consumer choice, and the potential for increased market power.
As the situation develops, industry observers are keenly watching how regulatory bodies will respond to this high-profile deal. The outcome could set significant precedents for future mergers in the entertainment sector, affecting not just Netflix and Warner Bros., but the entire landscape of media and entertainment.
