US President Donald Trump has flagged potential concerns. Netflix plans a $72bn (£54bn) deal to buy Warner Brothers Discovery’s movie studio. The deal also includes popular HBO streaming networks.
He spoke at an event in Washington DC on Sunday. He said Netflix has a “big market share.” He also mentioned that the firms’ combined size “could be a problem.”
On Friday, the two companies said they had reached an agreement to bring Warner Brothers’ franchises to Netflix. This includes popular series like Harry Potter and Game of Thrones. This collaboration creates a new media giant.
The planned deal, which has raised concerns among some in the industry, is yet to be approved by competition authorities. The Media has contacted Warner Bros, Netflix and the White House for comment.
Launched in 1997 as a postal DVD rental business, Netflix has grown to become the world’s largest subscription streaming service. The deal, the biggest the film industry has seen in a long time, would cement its number one position.
Under the agreement, several global entertainment franchises would move to Netflix. These franchises include Looney Tunes, The Matrix, and Lord of the Rings.
The deal is expected to be completed after Warner Bros splits its business in the second half of 2026.
The US Justice Department’s competition division, which oversees major mergers, could contend that the deal violates the law. This could happen if the combined businesses account for too much of the streaming market.
Trump spoke at an event at the John F Kennedy Center in the US capital. He said that Netflix has a “very big market share.” He added that this share would “go up by a lot” if the deal goes ahead.
Trump added he would personally be involved in the decision on whether to approve the deal. He repeatedly highlighted the size of Netflix’s market share.
He mentioned that Netflix’s co-CEO Ted Sarandos recently visited the Oval Office. Ted praised him for his work at the company.
“I have a lot of respect for him. He’s a great person,” said Trump. “He’s done one of the greatest jobs in the history of movies.”
Mr Sarandos earlier acknowledged that the agreement may have surprised investors. He said it was a chance to position Netflix for success in the “decades to come”.
Bill Kovacic, a former chair of the US competition watchdog the Federal Trade Commission, told the BBC’s Today programme. He mentioned that Trump’s comments meant negotiations over any problems surrounding the deal were “going to run through the White House”.
“That means that we’re going to have probably a deep level, an unprecedented level of presidential control in the resolution of what used to be a technical analysis of a merger,” he said.
Netflix beat several rivals including Comcast and Paramount Skydance to strike an agreement with Warner Bros.
Paramount Skydance, which is headed by David Ellison, had previously tried to buy all of Warner Bros, including its cable networks.
Warner Bros rejected that approach before putting itself up for sale.
David Ellison’s multi-billionaire father, Larry Ellison, is a close ally of Trump.
The Writers Guild of America’s East and West branches called for the merger to be blocked, saying 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. It would push down wages and worsen conditions for all entertainment workers. It would raise prices for consumers. It would also reduce the volume and diversity of content for all viewers,” it said on Friday.
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