TLDR
- President Trump warns Netflix-Warner Bros. deal faces antitrust scrutiny over combined streaming market share
- WBD shares fell 1.7% in premarket trading while Netflix stock rose 1.07% after Trump’s comments
- Trump met with Netflix co-CEO Ted Sarandos and confirmed he’ll participate in the approval decision
- The $82.7 billion acquisition faces bipartisan opposition from lawmakers and Hollywood unions
- Netflix faces a $5.8 billion termination fee if the deal gets blocked by regulators
Warner Bros. Discovery stock slipped Monday after President Trump raised concerns about Netflix’s planned takeover of the media company.
Speaking to reporters Sunday evening, Trump said the streaming giant’s combined market share with Warner Bros. “could be a problem.” The comments followed a meeting with Netflix co-CEO Ted Sarandos at the Oval Office.
WBD shares dropped 1.7% to $25.64 in early trading. Netflix stock climbed 1.07% to $101.33 after falling nearly 3% Friday.
Warner Bros. Discovery, Inc., WBD
“They have a very big market share, and when they have Warner Bros, that share goes up a lot,” Trump told reporters at the Kennedy Center Honors. He confirmed he would take part in deciding whether to approve the merger.
Trump called Netflix “a great company” and praised Sarandos as “a fantastic man.” But he made clear the deal must go through a regulatory review process.
When asked if Sarandos offered any guarantees about the acquisition, Trump said “No, not at all.” He added that Netflix has “got a lot of interesting things happening” beyond the Warner Bros. purchase.
The $82.7 Billion Deal
Netflix announced Friday it would acquire Warner Bros. Discovery’s studio and streaming assets. The deal came after Paramount Skydance and Comcast submitted competing bids.
Under the agreement, WBD will spin off its TV network division into a new public company called Discovery Global. Netflix’s offer values the remaining business at $27.75 per share.
Shareholders would get $23.25 in cash plus $4.50 worth of Netflix stock for each WBD share they own. The companies expect to complete the transaction late next year.
Netflix agreed to pay a $5.8 billion breakup fee if the deal falls apart or regulators reject it. That represents one of the largest termination penalties in media history.
Lawmakers and Unions Push Back
The merger sparked immediate criticism from both Democrats and Republicans in Congress. Senator Roger Marshall called it a threat to consumers and entertainment workers.
“One company should not have full vertical control of the content and the distribution pipeline that delivers it,” Marshall said. He urged regulators to scrutinize the competitive impact.
The Writers Guild of America released a scathing statement opposing the deal. The union argued it would eliminate jobs, reduce wages, and limit content options for viewers.
“The world’s largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent,” the WGA said.
Netflix Defends the Merger
Sarandos defended the acquisition during an analyst call after the announcement. He called the deal “pro-consumer, pro-innovation, pro-worker” and expressed confidence in getting regulatory approval.
“We’re going to work really closely with all the appropriate governments and regulators,” Sarandos said. He maintained that Netflix expects to clear all necessary hurdles.
Reuters reported that Paramount’s bid raised funding questions while Comcast’s offer delivered fewer upfront benefits to WBD shareholders. Those factors helped Netflix secure the winning proposal.
Trump’s comments introduce fresh uncertainty as the companies prepare for regulatory review. The president’s personal involvement could extend the approval timeline.
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