Trump says $72bn Netflix-Warner Bros deal ‘could be a problem’
US President Donald Trump has raised potential concerns over Netflix’s planned $72bn (£54bn) deal to buy film studio Warner Brothers Discovery and popular streaming networks HBO.
At an event in Washington DC on Sunday, he said Netflix had a “large market share” and the combined size of the companies “could be a problem.”
On Friday, the two companies announced they had reached a deal to bring Warner Brothers franchises like Harry Potter and Game of Thrones to Netflix, creating a new media giant.
The planned deal, which has sparked concerns among some in the industry, has not yet been approved by competition authorities. The BBC has contacted Warner Bros, Netflix and the White House for comment.
Launched in 1997 as a mail-in DVD rental business, Netflix has grown into the world’s largest subscription streaming service. This agreement, the most important that the film industry has seen in a long time, would consolidate its position as number one.
Under the deal, several global entertainment franchises, such as Looney Tunes, The Matrix and Lord of the Rings, would be brought to Netflix.
The deal is expected to be finalized after Warner Bros spins off its operations in the second half of 2026.
The U.S. Justice Department’s Competition Division, which oversees major mergers, could argue the deal violates the law if the combined companies account for too large a share of the streaming market.
During an event at At the John F. Kennedy Center in the US capital, Trump said Netflix had a “very large market share” that would “increase significantly” if the deal goes through.
Trump added that he would be personally involved in the decision whether to approve the deal and repeatedly emphasized the scale of Netflix’s market share.
He also said that Netflix co-CEO Ted Sarandos recently visited the Oval Office and praised him for his work at the company.
“I have a lot of respect for him. He’s a great person,” Trump said. “He did one of the greatest jobs in the history of cinema.”
Mr. Sarandos previously acknowledged that the deal may have surprised investors, but said it was a chance to position Netflix for success in the “decades to come.”
Blair Westlake, media executive and former chairman of Universal Studios’ television and networks group, told the BBC’s Today show that “the only two things that matter” when it comes to competition are the combination of Netflix and Warner Brothers’ HBO streaming business.
“Netflix is not in the studio production business like Warner Brothers is, and even the size of the film and TV library that Netflix has pales in comparison to Warner’s,” he said.
Mr. Westlake said he believed the deal would eventually be approved, but “I think there will probably be some concessions to be made.”
Bill Kovacic, former chairman of the US competition watchdog the Federal Trade Commission, told the Today program that Trump’s comments meant negotiations on any issues surrounding the deal “were going to go through the White House”.
“That means we’re probably going to have a deep level, an unprecedented level of presidential oversight in resolving what was once a technical analysis of a merger,” he said.
Netflix beat out several competitors, including Comcast and Paramount Skydance, to land a deal with Warner Bros.
Paramount Skydance, led by David Ellison, had previously attempted to purchase all of Warner Bros., including its cable networks.
Warner Bros rejected this approach before putting itself up for sale.
David Ellison’s multibillionaire father, Larry Ellison, is a close ally of Trump.
The Eastern and Western branches of the Writers Guild of America called for blocking the merger, saying “the world’s largest streaming company swallowing up one of its biggest competitors is what antitrust laws were designed to prevent.”
“The result would result in lost jobs, lower wages, worse conditions for all entertainment workers, higher prices for consumers, and a reduction in the volume and diversity of content for all viewers,” he said Friday.
