US President Donald Trump has raised concerns about Netflix’s planned $72bn acquisition of Warner Bros Discovery’s movie studio and HBO streaming networks, saying the combined size of the two companies “could be a problem” because of Netflix’s existing market share.
Comments at Washington Event
Speaking at an event in Washington DC on Sunday, Trump said Netflix already holds a “big market share” and that figure would increase significantly if the deal is approved. He said he would be personally involved in the decision on whether the transaction should proceed and repeatedly referenced the scale of Netflix’s position in the streaming market.
The BBC has contacted Warner Bros Discovery, Netflix and the White House for comment.
Overview of the Proposed Acquisition
On Friday, Netflix and Warner Bros Discovery confirmed they had reached an agreement that could bring franchises such as Harry Potter and Game of Thrones to Netflix. The deal would also move other global franchises, including Looney Tunes, The Matrix and The Lord of the Rings, under the Netflix platform.
The transaction remains subject to approval by competition authorities. If completed, it would be the largest deal in the film industry in many years and would further consolidate Netflix’s position as the world’s largest subscription streaming service.
Netflix was launched in 1997 as a postal DVD rental company and has since expanded into a global streaming business.
Regulatory Oversight and Antitrust Review
The US Justice Department’s antitrust division, which reviews major mergers, could challenge the deal if it determines that the combined businesses would account for too large a share of the streaming market.
Trump made his remarks at the John F. Kennedy Center in the US capital, where he said Netflix’s market share would “go up by a lot” if the acquisition is completed.
Interaction With Netflix Leadership
Trump also said that Netflix co-chief executive Ted Sarandos had recently visited the Oval Office and praised him for his leadership at the company.
“I have a lot of respect for him. He’s a great person,” Trump said. “He’s done one of the greatest jobs in the history of movies.”
Sarandos had previously said the agreement may have surprised some investors but described it as an opportunity to position Netflix for success in the coming decades.
Industry Opposition From Unions
The deal has drawn criticism from parts of the entertainment industry. The Writers Guild of America’s East and West branches called for the merger to be blocked.
In a statement issued on Friday, the union said the “world’s largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent.” It added that the outcome would eliminate jobs, reduce wages, worsen working conditions, raise prices for consumers and reduce the volume and diversity of content available to viewers.
Featured image credits: Wikimedia Commons
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