Former President Donald Trump has expressed concerns regarding the proposed $72 billion merger between Netflix and Warner Bros. Discovery. He highlighted the potential increase in market share that could result from this union.
Details of the Netflix-Warner Bros. Deal
Netflix’s acquisition would extend beyond a mere purchase of Warner Bros. Discovery’s assets. The total value of the deal swells to over $82 billion when accounting for existing debt. Netflix aims to acquire Warner Bros. Pictures, HBO, and HBO Max, gaining access to a vast archive of films and television shows.
However, the deal will not include Warner Bros. Discovery’s cable networks, such as CNN and TNT. Trump’s skepticism about the approval process was evident as he emphasized the substantial market share of the merged entity, saying, “When they have Warner Bros., that share goes up a lot.”
Regulatory Oversight and Challenges
- The deal may require approval from the Justice Department’s antitrust division.
- It could also face scrutiny from the European Commission and other international regulators.
- Since neither Netflix nor Warner Bros. owns broadcast stations, FCC approval is not necessary.
Historically, U.S. presidents have generally steered clear of involvement in antitrust decisions for corporate mergers. However, Trump indicated he might seek insights from economists as part of his evaluation process for the deal.
Corporate Engagement with Trump
In a related development, Bloomberg News reported that Netflix’s co-CEO, Ted Sarandos, visited Trump in mid-November to discuss the merger. This strategy mirrors corporate executives’ tendencies to engage with political leaders ahead of significant corporate announcements. Trump has confirmed this meeting, stating, “I met with Ted. I think he’s fantastic.”
During this meeting, no commitments were made by Sarandos, as Trump noted. The former president compared Netflix’s success to that of MGM, which recently was acquired by Amazon, underscoring the changing dynamics in the industry.
Antitrust Concerns from Lawmakers
Senator Elizabeth Warren has voiced strong opposition to the merger, characterizing it as an “anti-monopoly nightmare.” Industry analysts expect Netflix to position itself as a competitor against platforms like YouTube, which is frequently regarded as the leading streaming app among U.S. consumers.
As discussions about this high-stakes deal continue, all eyes will be on regulatory bodies and political figures as they assess its implications for the media landscape.
