US president Donald Trump has voiced concerns over Netflix’s proposed £54bn acquisition of Warner Bros Discovery, suggesting the mega-deal “could be a problem” due to its potential market dominance.
Mr Trump also confirmed his direct involvement in the federal government’s decision to approve the takeover, announced just days prior.
The streaming giant Netflix revealed last Friday its agreement to purchase Warner Bros Discovery’s extensive film and TV studios business.
This move is poised to dramatically reshape the established Hollywood industry, which has already experienced significant disruption from the rapid expansion of streaming services.
The acquisition, which saw Netflix emerge as the front-runner in an auction against competitors like Paramount Skydance and Sky owner Comcast, includes major assets such as HBO, its streaming platform HBO Max, and iconic franchises like Harry Potter and Batman.
Speaking at the Kennedy Centre Honours on Sunday, Mr Trump reiterated his reservations. “There’s no question about it. It could be a problem,” he stated, adding that the deal must “go through a process and we’ll see what happens.”
He praised Netflix as “a great company” and its chief executive, Ted Sarandos, as “a fantastic man,” noting their meeting in the Oval Office last week before the deal’s December 5 announcement. “I have a lot of respect for him, but it’s a lot of market share, so we’ll have to see what happens.”
When pressed on whether Netflix should be permitted to acquire the Hollywood powerhouse, Mr Trump responded: “Well that’s the question. 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. I’ll be involved in that decision, too. But they have a very big market share.”
The proposed merger would unite two of the world’s largest streaming services, combining Warner’s television and motion picture divisions, including DC Studios, with Netflix’s vast content library and production capabilities.
Mr Trump clarified that Mr Sarandos offered no guarantees regarding the merger’s approval during their meeting, describing the Netflix boss as a “great person” who has “done one of the greatest jobs in the history of movies and other things.”
However, the deal has already faced significant opposition from US unions. The Writers Guild of America West (WGAW) and Writers Guild of America East (WGAE) issued a joint statement last Friday, urging regulators to block the merger. They argued it would lead to job losses, depress wages, and worsen working conditions for entertainment professionals.
Netflix has committed to paying $27.75 (£20.79) per share to investors in the Warner Bros Discovery business. Should it receive approval, the acquisition is expected to finalise after Warner Bros Discovery completes a planned spin-off of its cable channels, which include CNN, TBS, and TNT Sports in the UK.
