WASHINGTON (AP) — President Donald Trump expressed reservations regarding Netflix's substantial acquisition of Warner Bros. Discovery, a deal valued at $72 billion, during a recent event at the Kennedy Center Honors.
“There’s no question about it,” Trump stated, indicating that the merger, which would consolidate two of the most significant names in streaming, could potentially pose regulatory challenges due to the elevated market share it would create.
Should regulators approve the merger, Warner's television and motion picture division, which notably includes properties like DC Studios, would be combined with Netflix's vast content library and production capabilities.
In discussing the merger’s implications, Trump noted, “Netflix is a great company. They’ve done a phenomenal job.” He acknowledged a recent meeting with Netflix CEO Ted Sarandos, expressing respect for his leadership but also reiterated concerns about the potential for significant market consolidation.
Licensed to drive discussions on such mergers, Trump revealed his intention to be involved in the approval process, emphasizing the potential for the merged entity to dominate the streaming landscape.
“They have a very big market share and when they have Warner Bros., you know, that share goes up a lot so, I don’t know,” he remarked. He highlighted that while Netflix’s acquisition might be beneficial for the company, it presents questions for federal regulators.
In conclusion, Trump raised key points regarding competition in the entertainment industry, illuminating the delicate balance between corporate growth and regulatory oversight.
