Trump Sees Possible Problem in Netflix-Warner Bros Deal, Expresses Desire to Get Involved

US President Donald Trump warned on Sunday that Netflix's blockbuster move to acquire Warner Bros Discovery 'could be a problem', citing the huge market share the combined companies would command.

The deal, valued at around £61 billion ($82 billion), including debt, is set to reshape Hollywood if regulators give the green light.

Netflix-Warner Bros Merger

Warner Bros Discovery announced on Friday, 5 December, that it had agreed to sell its film, TV and streaming assets to Netflix. If federal regulators approve, the deal will bring together the world's most subscribed streaming platform with one of Hollywood's longest-running film studios.

'Our mission has always been to entertain the world,' Netflix co-CEO Ted Sarandos shared in a news release posted by NBC News. 'By combining Warner Bros.' incredible library of shows and movies — from timeless classics like "Casablanca" and "Citizen Kane" to modern favourites like "Harry Potter" and "Friends" — with our culture-defining titles like "Stranger Things", "KPop Demon Hunters" and "Squid Game", we'll be able to do that even better.'

Sarandos also said that the Netflix-Warner Bros deal will allow them to provide their audiences with more entertainment options from their expanded collection of film and television titles. It can also 'define the next century of storytelling.'

Netflix is known for its out-of-the-box movie and television programmes that people all over the world enjoy. They have also incorporated titles from different parts of the world, spanning diverse cultures and genres, making it a dominant force in streaming.

Trump Raises Red Flags

Speaking with reporters at the Kennedy Centre Awards in Washington, Trump said the merger should undergo scrutiny before being finalised. According to Trump, Netflix already has a large market share. 'When they have Warner Bros, that share goes up a lot,' the president said.

The streaming service giant already has more than 300 million subscribers worldwide, while Warner's HBO Max trails behind. Trump also said he would speak with some economists to discuss the merger before giving his approval. 'I'll be involved in that decision, too,' he added.

Traditionally, presidents have not played a direct role in antitrust approvals when business institutions plan to merge. Since both Warner Bros and Netflix do not own broadcast stations, their merger does not require the approval of the Federal Communications Commission. Yet they are expected to face review by the antitrust division of the US Department of Justice.

Sarandos Met With Trump

The Hollywood Reporter noted that Netflix's possible acquisition of Warner Bros was unexpected, since Paramount Skydance CEO David Ellison was thought to have secured Trump's support in his own bid to acquire the century-old entertainment studio.

However, multiple insiders reportedly told the publication that Netflix's Sarandos may also have had the go-ahead to acquire Warner after a private two-hour meeting with Trump. While the sources could not provide any information about what was discussed, speculation suggests Warner Bros was central to the talks, which led the entertainment streaming giant to push through with the deal.

However, the White House has declined to comment about the report of a Trump-Sarandos meeting.