UPDATE: Former President Donald Trump has just raised concerns over the recently announced $82.7 billion merger between Netflix and Warner Bros. Discovery, stating it “could be a problem” during an event at the John F. Kennedy Center in Washington D.C. This statement comes just days after Netflix confirmed it had won the bidding war for Warner Bros., a deal that could significantly reshape the streaming landscape.
Trump emphasized that Netflix’s already substantial market share would likely “go up by a lot” if the merger proceeds, highlighting urgent antitrust implications. Current estimates suggest that Netflix and HBO Max together control a staggering 34% of the U.S. streaming market, surpassing thresholds set by the U.S. Department of Justice for antitrust regulations.
As the situation develops, Netflix’s legal team is expected to argue that the combined market share is smaller when factoring in YouTube, which holds the highest video streaming viewership share. They may downplay Warner Bros. as a direct competitor, instead framing it as a content library and production studio.
Beyond market dynamics, Trump’s comments hint at potential personal interests influencing the administration’s stance. The former president has previously praised Netflix’s co-CEO Ted Sarandos, calling him “a great person” and crediting him with significant contributions to cinema. However, reports indicate Trump may have preferred a competing bid from Paramount, led by David Ellison, a known ally of Trump.
The stakes are high as Netflix has included a $5.8 billion breakup fee in the merger agreement, showcasing their confidence in receiving regulatory approval. This fee would be payable if the deal collapses for any reason, indicating the seriousness with which Netflix is pursuing this acquisition.
As the clock ticks, the merger is not expected to close until late 2026, possibly extending into 2027. The ramifications for consumers and the entertainment industry are profound, with expectations of increased content variety but potential price hikes looming.
Stay tuned for ongoing updates as this story continues to unfold. The implications of this merger could shape the future of streaming for millions of viewers and impact the competitive landscape among major platforms.
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