Trump says $72B Netflix-Warner Bros Deal ‘A Problem’

US President Donald Trump has raised potential concerns about Netflix's planned $72 billion (£54 billion) deal to acquire Warner Bros.

sarah

Dec 8, 2025 - 19:27

Trump says $72B Netflix-Warner Bros Deal ‘A Problem’

US President Donald Trump has raised potential concerns about Netflix's planned $72 billion (£54 billion) deal to acquire Warner Bros. Discovery's movie studio and the popular HBO streaming network.

At an event in Washington, DC, on Sunday, he said Netflix has a "huge market share" and the combined size of the firms "could be a problem."

On Friday, the two companies said they had reached an agreement to bring Warner Bros. franchises like Harry Potter and Game of Thrones to Netflix, creating a new media giant.

The planned deal, which has raised concerns among some in the industry, is yet to receive approval from competition authorities.

Launched in 1997 as a postal DVD rental business, Netflix has become the world's largest subscription streaming service. This deal, the largest in the film industry in a long time, would further cement its number one position.

Under this agreement, several global entertainment franchises, such as Looney Tunes, The Matrix, and Lord of the Rings, will be transferred to Netflix. The deal is expected to be completed in the second half of 2026 after Warner Bros. splits its business.

The US Justice Department's Competition Division, which oversees major mergers, could rule that the deal violates the law if the combined businesses take too much of the streaming market.

At an event at the John F. Kennedy Center in the US Capitol, Trump said that Netflix has a "huge market share" that will "increase significantly" if the deal goes through.

Trump said he would be personally involved in the decision to approve the deal and repeatedly emphasized the size of Netflix's market share.

He also noted that Netflix co-CEO Ted Sarandos recently visited the Oval Office and praised his work at the company.

"I respect him so much. He's a wonderful man," Trump said. "He's done one of the greatest things in the history of movies."

Mr. Sarandos previously acknowledged that the agreement might surprise investors, but he said it was an opportunity to position Netflix for success for "decades to come."

Blair Westlake, a media executive and former chairman of Universal Studios' television and networks group, said on the Today program that when it comes to competition, "only two things matter" – the combination of Netflix and Warner Bros.' HBO streaming business.

He said, "Netflix isn't in the studio production business like Warner Bros. is, and Netflix's library of films and television programming is much smaller than Warner Bros.'s."

Although the Netflix deal will give it a strong foothold in video streaming, experts say it will be less effective if regulators adopt a broader definition that includes cable and broadcast TV, and even YouTube, as competitors.

Mr. Westlake said, "Many people don't realize that YouTube is the world's largest consumer destination for content, far surpassing anything else." He said he believed the deal would ultimately be approved, but "I think some concessions will probably have to be made."

Bill Kovacic, former chairman of the US competition watchdog Federal Trade Commission, told the Today program that Trump's comments mean that any negotiations regarding the deal "will go through the White House."

He said, "This means we will probably have a deeper, never-before-seen, presidential control over resolving the technical analysis of the merger."

Netflix beat out several competitors, including Comcast and Paramount Skydance, to reach an agreement with Warner Bros.

David Ellison, head of Paramount Skydance, had previously tried to acquire Warner Bros., including all of its cable networks.

Warner Bros. rejected that approach before selling itself.

David Ellison's billionaire father, Larry Ellison, is a close ally of Trump. The East and West branches of the Writers Guild of America demanded a halt to the merger, saying, "The world's largest streaming company is swallowing one of its biggest competitors, something antitrust laws were designed to prevent."

"This will result in job losses, wage cuts, worsening conditions for all entertainment workers, raising prices for consumers, and reducing the quantity and diversity of content for all audiences," it said on Friday.

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