Netflix dropped a bombshell earlier, announcing plans to...$827 millionThe acquisition of Warner Bros.' core assets, including its film and television studios, HBO Max, and HBO operations, aims to create the world's most powerful film and television empire. However, the deal's success is now facing its biggest variable—US President Donald Trump.
According toBloomberg NewsThe report alleges that Trump expressed clear concerns about the merger when questioned by reporters. He stated bluntly, "This has to go through a process, and we'll see what happens. But this is a huge market share, and that could be a problem." Furthermore, Trump added that he would be personally involved in the approval process.
The combined market share reached 33%, far exceeding Prime Video.
Trump's concerns are not unfounded. Market analysis indicates that if Netflix successfully acquires Warner Bros.' assets, including HBO Max, the combined entity will control approximately 33% of the US streaming video market. In comparison, competitor Amazon Prime Video holds about 21% of the market share.
Such a high level of market concentration would almost certainly attract rigorous scrutiny from the U.S. Department of Justice's (DOJ) antitrust division. Although Netflix emphasizes that it will "maintain Warner Bros.' current business," including theatrical distribution and television studio operations, regulators may not be so easily swayed.
Did the CEO lobby the White House and cause Trump's attitude to change?
Interestingly, Netflix seems to have anticipated regulatory resistance. Reports reveal that Netflix co-CEO Ted Sarandos met with Trump at the White House as early as November, attempting to persuade the president that the acquisition would not create a monopoly. At the time, Trump seemed inclined to believe that Warner Bros. Discovery (WBD) should be sold to the "highest bidder," leading Ted Sarandos to believe that he would not face opposition from the White House in the short term.
However, Trump's latest remarks on the "market share issue" suggest that the tide may have turned.
Internal and external troubles: Paramount's interference and union backlash
In addition to regulatory pressure from Washington, the deal also faces numerous challenges in Hollywood.
Paramount, which had previously expressed strong interest in Warner Bros. Exploration, is now rumored to be reluctant to give up easily and is even considering a hostile bid to acquire the assets. Meanwhile, major Hollywood unions and associations are on high alert, worried that Netflix's acquisition will lead Warner Bros. to significantly reduce its theatrical releases, thereby impacting back-end profit sharing and production job opportunities.
