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President Donald Trump raised antitrust concerns over the proposed Netflix takeover of Warner Bros. Discovery on Sunday, warning that the combined market share could be a problem.
Netflix on Friday agreed to acquire Warner Bros. Discovery’s film and television studios and streaming platform, HBO Max, in a cash-and-stock deal valued at $27.75 per Warner Bros. Discovery share.
“It’s got to go through a process, and we’ll see what happens… Netflix is a great company, they’ve done a phenomenal job. [Netflix CEO] Ted [Sarandos] is a fantastic man, I have a lot of respect for him, but it’s a lot of market share. So, we’ll have to see what happens,” Trump said while walking into the Kennedy Center.
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Trump said that economists would have to examine the deal before noting that he will play a role himself.
“I’ll be involved in that decision,” Trump added. “They have a very big market share, and when they have Warner Bros., you know, that share goes up a lot.”
Trump’s comments came before Paramount announced a hostile takeover bid on Monday.
Many have spoken out against the proposed Netflix deal.
Sen. Mike Lee, R-Utah, who chairs the Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights, announced that a hearing on the streaming giant’s $82.7 billion acquisition of Warner Bros. Discovery’s streaming and studio assets would be in the works, claiming the deal had “a lot of antitrust red flags.”
“Buckle up for an intense antitrust hearing in the Senate,” Lee said on X.
SENATE GEARS UP FOR ‘INTENSE’ ANTITRUST HEARING IN WAKE OF NETFLIX, WARNER BROS DEAL
Sen. Elizabeth Warren, D-Mass., said it “looks like an anti-monopoly nightmare.”
“A Netflix-Warner Bros. would create one massive media giant with control of close to half of the streaming market. It could force you into higher prices, fewer choices over what and how you watch, and may put American workers at risk,” Warren wrote on X.
Warren slammed Trump, saying that, under his leadership, the nation’s antitrust review process had “become a cesspool of political favoritism and corruption.” She then called on the Justice Department to enforce anti-monopoly laws “fairly and transparently” and not to “use the Warner Bros. deal review to invite influence-peddling and bribery.”
The Writers Guild of America (WGA), a union representing writers in motion pictures, television, radio and more, issued a scathing statement against the proposed deal, saying “this merger must be blocked.”
“The world’s largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent. The outcome would eliminate jobs, push down wages, worsen conditions for all entertainment workers, raise prices for consumers, and reduce the volume and diversity of content for all viewers,” WGA’s statement said.
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Netflix has argued that the deal would give customers more choice and greater value, provide opportunities for the creative community, lead to a stronger entertainment industry and produce more value for shareholders. The boards of directors for both Netflix and Warner Bros. Discovery unanimously approved of the deal.
Under the deal, Netflix would add franchises, shows and movies such as “The Big Bang Theory,” “The Sopranos,” “Game of Thrones,” “The Wizard of Oz” and the DC Universe to its extensive library.
Netflix won’t acquire Warner Bros. Discovery if Paramount CEO David Ellison has anything to do with it, as he launched an all-cash tender offer on Monday to acquire the outstanding shares of Warner Bros. Discovery for $30.00 per share in cash, suggesting it’s a “superior” offer than the recently announced Netflix deal.
“We are taking our offer directly to shareholders to give them the opportunity to act in their own best interests and maximize the value of their shares,” Ellison said.
Paramount said in a press release that regulatory certainty is among the reasons why it sees itself as a better fit.
“Paramount is highly confident in achieving expeditious regulatory clearance for its proposed offer, as it enhances competition and is pro-consumer, while creating a strong champion for creative talent and consumer choice,” the release stated. “In contrast, the Netflix transaction is predicated on the unrealistic assumption that its anticompetitive combination with WBD, which would entrench its monopoly with a 43% share of global Subscription Video on Demand (SVOD) subscribers, could withstand multiple protracted regulatory challenges across the world.”
Fox News Digital’s Rachel Wolf, Alex Miller and Daniella Genovese contributed to this report.
