Trump raises concerns about Netflix-Warner deal
The president said the $72 billion deal “could be a problem.”
WASHINGTON—President Trump said Netflix’s $72 billion deal to acquire Warner Bros. “could be a problem" because it would result in a large market share for the streaming giant, signaling possible government resistance in his first public comments about the sale.
“They have a very big market share," Trump said Sunday night of Netflix. “And when they have Warner Brothers, that share goes up a lot." He added, “I’ll be involved in that decision."
Trump, who spoke to reporters before a Kennedy Center event, also praised Netflix Co-Chief Executive Ted Sarandos and said that they met last week in the Oval Office.
“I have a lot of respect for him. He’s a great person. He’s done one of the greatest jobs in the history of movies and other things," Trump said. “But it is a big market share, there’s no question about it. It could be a problem."
His remarks raise new questions about the path forward for the deal, which regulators are expected to review, but fell short of outright condemnation.
On Friday, Netflix agreed to acquire Warner Bros. after the entertainment company splits its studios and HBO Max streaming business from its cable networks, beating rival bidders Paramount and Comcast. The deal stunned Hollywood, where many assumed David Ellison’s Paramount was the most likely suitor.
Trump’s advisers, including White House officials, are concerned about the deal, a senior administration official said last week.
The transaction is expected to be investigated by the Justice Department, which has already begun considering how the tie-up would further cement Netflix’s dominance in the media industry.
Netflix and HBO Max together would control around 30% of the U.S. subscription streaming marketplace. Netflix has argued that the streaming marketplace should also include mostly free video platforms such as YouTube, Facebook and TikTok.
Paramount, which sought to buy all of Warner Bros. Discovery, has said it was the only bidder whose proposal didn’t raise antitrust issues. Trump is close with Paramount CEO David Ellison and his father, Larry Ellison, and could pressure antitrust enforcers to steer Warner toward Paramount instead.
Write to Alex Leary at alex.leary@wsj.com and Joe Flint at Joe.Flint@wsj.com
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