President Donald Trump confirmed Sunday that he met with Netflix co-CEO Ted Sarandos in the Oval Office last week to discuss the network’s plans to acquire studios Warner Bros. and HBO Max, but noted that the deal could attract antitrust scrutiny, noting that the combined market share of both entities could “be an issue.”
Key data
Speaking to reporters on the red carpet at the Kennedy Center Honors, which he hosted, Trump said the proposed deal will have to “go through a process and we’ll see what happens,” before calling Netflix a “great company” that has done a “phenomenal job.”
Trump later showered Sarandos with praise, calling him “a fantastic man” who has done “an incredible job.”
When asked if Netflix should be able to buy Warner Bros., Trump said: “They have a very large market share, and when they have Warner Bros.… That share goes up a lot.”
“That will be something that some economists will say, and I will be involved in that decision,” Trump added, indicating that the deal will undergo very careful antitrust scrutiny.
The president was asked if Sarandos had made any guarantees about the deal, and Trump responded “No, not at all,” adding that Netflix “has a lot of interesting things going on besides what you’re saying.”
“But it’s a big market share, there’s no doubt about that… There could be a problem,” Trump said of the planned acquisition.
What has Netflix said about possible antitrust scrutiny?
In a conference call with analysts shortly after the deal was announced, Sarandos said: “We’re very confident in the regulatory process. You know, this deal is pro-consumer, pro-innovation, pro-worker, it’s pro-creator, it’s pro-growth. Our plans here are to work very closely with all the relevant governments and regulators, but we’re very confident that we’re going to get all the necessary approvals that we need.”
How has the market reacted to Trump’s comments about Netflix and Warner?
In early premarket trading Monday, Warner Bros. Discovery’s share price fell 1.7% to $25.64 after Trump suggested the deal could face antitrust hurdles. Netflix shares rose 1.07% in early trading to $101.33 after falling nearly 2.9% on Friday. On cryptocurrency-based betting platform Polymarket, the “Yes” odds on a new contract that asks “Will Netflix close its acquisition of Warner Bros. before the end of 2026?” they fell from 59% to 22% after Trump’s comment.
You may be interested in: Netflix-Warner Bros. agreement creates a streaming giant, but faces challenges
Key background
On Friday, Netflix announced that it had reached an agreement to acquire Warner Bros. — including the company’s film and television studios and the HBO Max platform — in an $82.7 billion deal. The announcement came after a weeks-long bidding war between Paramount, Skydance and Comcast. Under the deal, Warner Bros. Discovery will spin off its television network business into a separate public company, Discovery Global, while Netflix’s cash-and-stock offer values Warner’s studio and streaming business at $27.75 per share. If the deal goes through, each WBD shareholder will receive $23.25 in cash per share and $4,501 in Netflix shares. However, the deal faced immediate resistance from lawmakers of both parties and Hollywood unions, who demanded antitrust oversight.
Large Number
5.8 billion dollars. That’s the total termination fee Netflix has agreed to pay Warner Bros. if its proposed deal doesn’t move forward or is blocked by regulators.
Tangent
Paramount Skydance, the other big bidder for Warner Bros. assets, has denounced the sales process, allegedly calling it “tainted.” In a letter sent last week to Warner CEO David Zaslav, Paramount’s lawyers alleged that Warner’s board had “initiated a short-sighted process with a predetermined outcome that favors a single bidder,” referring to Netflix. Last week, the New York Post reported that several senior White House officials raised antitrust concerns about Netflix’s candidacy. In a subsequent report Thursday night, the New York Post reported that Paramount Skydance CEO David Ellison met with Trump officials and key lawmakers in Washington, D.C., to make his case against Netflix’s acquisition of Warner. Ellison’s legal team is led by Makan Delrahim, who was the Justice Department’s competition chief during Trump’s first term, and his billionaire father, Larry Ellison, has forged close ties to the Trump White House.
This article was originally published in Forbes US
Do you like photos and news? Follow us on our Instagram
