Trump weighs in on the massive Netflix-Warner deal: ‘It could be a problem’
In a significant move within the entertainment industry, Netflix announced its intention to acquire Warner Bros. for a staggering $72 billion, marking the streaming giant’s largest acquisition to date. The deal includes Warner Bros.’ extensive portfolio, encompassing its TV and film studios, as well as its streaming services HBO and HBO Max. This acquisition has sparked considerable debate, particularly regarding its potential impact on market competition. Former President Donald Trump has voiced his concerns about the merger, suggesting that the combined market share of Netflix and Warner Bros. could pose antitrust issues. Speaking at the Kennedy Center, Trump acknowledged Netflix’s success under CEO Ted Sarandos but highlighted the need for economists to evaluate the implications of such a powerful entity in the media landscape.
Trump’s involvement in this discussion is noteworthy, as it echoes his previous opposition to major media mergers. In 2017, he criticized AT&T’s proposed acquisition of Time Warner, arguing that it was detrimental to the country. His comments on the Netflix-Warner Bros. deal come after a meeting with Sarandos, whom he praised as a “great person” and a leader in the film industry. However, Trump’s caution regarding the merger reflects broader concerns within the industry, as evidenced by Paramount CEO David Ellison’s recent visit to the White House, where he raised objections to the deal on antitrust grounds. This ongoing debate underscores the complexities of an evolving media landscape, where consolidation among major players raises questions about competition, content diversity, and consumer choice.
The financial implications of the merger are already being felt, with Netflix’s stock price experiencing a downturn of about 7% over the past week, while Warner Bros.’ stock has risen by over 8%. As the deal progresses, it will be crucial to monitor both the regulatory response and the market’s reaction, as the entertainment industry braces for the potential ramifications of this monumental acquisition. With Trump’s involvement and the growing scrutiny from industry leaders, the Netflix-Warner Bros. deal could set a significant precedent for future mergers and acquisitions in the media sector.
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Trump said the Netflix-Warner Bros. deal could be a problem.
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Trump has thoughts about Netflix’s $72 billion acquisition of Warner Bros.
He said their combined market share “could be a problem” and said he would be involved in the deal.
In 2017, Trump opposed AT&T’s proposed acquisition of Time Warner.
President Donald Trump is getting involved in the
Netflix-Warner Bros
. deal.
On Friday, Netflix announced that
it would acquire Warner Bros
., including its TV and film studios, HBO and HBO Max, for $72 billion. If the deal goes through, it will be Netflix’s biggest acquisition to date.
Speaking to reporters at the Kennedy Centre on Sunday, Trump said Netflix is a great company that has done a “phenomenal job.”
But he added, “They have a very big market share, and when they have Warner Brothers, you know, that share goes up a lot.”
“So I don’t know, that’s going to be for some economists to tell. And also, I’ll be involved in that decision, too,” Trump said.
Trump added that Netflix’s CEO, Ted Sarandos, visited him in the Oval Office last week. He said Sarandos was a “great person” who has done “one of the greatest jobs in the history of movies.”
“But it is a big market share, there’s no question about that. It could be a problem,” he added.
Representatives for Netflix and Warner Bros. did not respond to requests for comment from Business Insider.
The announcement of Warner Bro.’s sale has drawn criticism. Paramount CEO David Ellison was at the White House last week, where he objected to the deal on antitrust grounds, per a report by The New York Post. Paramount Skydance had been competing with Netflix and Comcast to buy Warner Bros.
This is not the first time Trump has become involved in an antitrust case. In 2017, he
opposed AT&T’s proposed acquisition
of Time Warner, saying it was “not good for the country.”
Netflix’s stock price is down about 7% in the past five days, while Warner Bro.’s stock price is up more than 8% in the same period.
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