Trump warns of rising market power
US President Donald Trump says the planned 72bn-dollar takeover of Warner Brothers Discovery by Netflix could cause major problems. He tells an audience in Washington that Netflix already controls a large share of the streaming market and that the combined scale of both firms could raise serious concerns. The companies announce on Friday that they have reached an agreement to bring major Warner franchises like Harry Potter and Game of Thrones to Netflix, creating a powerful new media group. The deal still requires approval from competition regulators. A media request to the firms and the White House gets no response.
Netflix seeks long-term dominance
Netflix grows from a DVD rental service in 1997 into the world’s largest subscription streaming platform. The planned takeover, one of the biggest in the film industry for years, would strengthen its leading position. The agreement would move global franchises such as Looney Tunes, The Matrix and The Lord of the Rings to Netflix. The deal is expected to close after Warner Bros completes a planned business split in the second half of 2026.
Regulators weigh potential antitrust breaches
The US Justice Department’s competition division may argue that the merger breaks antitrust rules if the combined firms dominate too much of the market. Trump says at the Kennedy Center that Netflix already holds a very large market share that would rise sharply if the merger moves forward. He says he plans to take personal involvement in the approval process and repeatedly highlights Netflix’s growing market strength.
Trump highlights Sarandos’s achievements
Trump says Netflix co-chief Ted Sarandos recently visited the Oval Office and praises his leadership. He describes Sarandos as a respected figure who has delivered one of the most impressive achievements in the film world. Sarandos admits that the agreement may have surprised investors but says it positions Netflix for success in future decades.
Analysts point to key differences between the companies
Media executive Blair Westlake says in a radio interview that the core antitrust issue lies in the combination of Netflix with the HBO streaming business of Warner Brothers. He says Netflix does not run studio production on Warner’s scale and that Netflix’s library remains much smaller. Westlake expects the deal to receive approval but believes concessions will be necessary.
White House expected to shape merger review
Bill Kovacic, a former chair of the Federal Trade Commission, says Trump’s remarks suggest that the White House will guide the negotiations over any issues linked to the deal. He argues that this could lead to a level of presidential involvement not seen before in what was once a technical merger process.
Netflix outbids major industry rivals
Netflix beats competitors including Comcast and Paramount Skydance to reach the agreement with Warner Bros. Paramount Skydance, led by David Ellison, had earlier attempted to buy the entire company, including its cable networks. Warner Bros rejects that attempt before placing itself on the market. David Ellison’s billionaire father, Larry Ellison, remains a close ally of Trump.
Writers’ unions push for the deal to be blocked
The Writers Guild of America’s East and West branches call on regulators to stop the merger. They argue that the world’s largest streaming platform absorbing one of its strongest competitors breaks the purpose of antitrust law. They warn that the outcome would cut jobs, lower wages, worsen working conditions, raise prices for viewers and reduce the range and diversity of content.
