Trump to Review Netflix–Warner Brothers Deal
U.S. President Donald Trump said a proposed merger between Netflix and Warner Brothers should go forward, telling reporters the market share of a combined entity could raise concerns.
"I'll be involved in that decision," Trump told reporters as he arrived at the Kennedy Center for its annual awards show.
Netflix on Friday agreed to buy Warner Bros Discovery's TV, film studios and streaming division for $72 billion a deal that would hand control of one of Hollywood's most prized assets to the streaming pioneer.
Trump did not say whether he favored approval for the deal, but he pointed to a potential concentration of market power in the entertainment industry.
"That's going to be for some economists to tell. But it has a big market share. There's no question it could be a problem," Trump says.
Netflix announced on Dec. 5 that it agreed to buy Warner Bros. Discoverie’s TV and film studios and streaming division for $72 billion a deal that would give the streaming pioneer control of one of Hollywood's most prized and oldest assets.
The agreement follows a weekslong bidding war in which Netflix seized the lead with an almost $28-a-share offer that eclipsed Paramount Skydance’s nearly $24 bid for the whole of Warner Bros. Discovery, including the cable TV assets slated for a spinoff.
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The planned acquisition has faced political pushback and antitrust concerns. Republicans in Congress warned that a Netflix acquisition would reduce consumer choice and give the company an unacceptably high share of the streaming market.
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Sen. Mike Lee, a Republican from Utah who leads the antitrust subcommittee, said on Dec. 3 that a Netflix buy of Warner Bros. Discovery's streaming assets "should send alarm to antitrust enforcers around the world." Democrats, including Sen. Elizabeth Warren, have also criticized the agreement.
Warren says, “This deal 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 — threatening to force Americans into higher subscription prices and fewer choices over what and how they watch, while putting American workers at risk."
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Netflix has said the deal would create jobs and give its 300 million subscribers "more bang for their buck." The deal, which would eliminate competition between HBO Max and Netflix, is likely to face significant antitrust review by the Justice Department.