Trump says Netflix's plan to buy HBO owner Warner “could be a problem.” “I will be involved in the decision”, assures the president
Netflix, HBO Max and other streaming platforms on TV, PHOTO: Rafael Henrique / Dreamstime.com
Netflix became the surprise winner in the auction for Warner Bros on Friday, beating rival bids from Paramount and Comcast, writes the Financial Times.
Donald Trump said late Sunday that Netflix's “very large market share” in the video streaming market could be a problem as the company seeks regulatory approval to buy Warner Bros. in an $83 billion deal.
“They have a very large market share, and with the acquisition of Warner Brothers, that share will increase even more,” he said. “It could be a problem,” the president added.
Trump said he “will be involved in the decision” on whether to approve the deal.
Netflix emerged as the surprise winner in the bidding for Warner Bros. on Friday, beating out rival bids from Paramount and Comcast.
Netflix has officially announced that it will buy one of its biggest rivals and become the owner of HBO and HBO Max in a deal worth tens of billions of dollars
Netflix and Warner Bros. Discovery (WBD), the broader conglomerate that owns Warner Bros. studios, said Netflix will pay $27.75 per WBD share, bringing the total value of the deal to about $82.7 billion.
The deal covers Warner Bros Discovery's film studios, HBO television and its streaming service, HBO Max.
The deal also excludes Warner Bros Discovery's CNN and TNT TV networks, which will be spun off into a separate entity to be listed on the stock exchange after the split.
A thorough analysis
The Financial Times writes that it is expected that the Netflix-Warner deal will be subject to a thorough review by the Department of Justice.
When AT&T struck a deal to acquire Time Warner during the first Trump administration, a long battle with the Department of Justice ensued before the deal was finally approved.
Trump said Ted Sarandos visited him in the Oval Office for a meeting last week, adding that the Netflix chief executive did not give him any assurances about the Warner deal when they met.
Five takeaways from the shock Netflix-Warner Bros deal that could redefine the future of film
In his brief statement on Sunday, Trump called Sarandos “a wonderful person” and compared her to Louis B Mayer, the movie magnate who co-founded the Metro-Goldwyn-Mayer studio in 1924.
“I think it's fantastic,” he said of Sarandos. “I have a lot of respect for him. In the history of Hollywood, you can say there's been nothing like what he's accomplished. But it's a big market share, no doubt about it,” the president said.
Surprise offer
Netflix's winning bid surprised many in Hollywood.
A rival bid from Paramount was seen as the front-runner, and likely to win regulatory approval because the company is backed by Larry Ellison, the billionaire co-founder of Oracle and a Trump supporter.
In October, Trump also appeared to support the Paramount bid, telling reporters that the Ellisons are “friends with me.”
Netflix CEO Sarandos, a Democrat whose wife was ambassador to the Bahamas during the Obama administration, has also visited Trump at Mar-a-Lago since he was re-elected last year.
The Netflix-Warner deal won't close until the third quarter of 2026, or maybe even later. This is subject to regulatory approval in the US and Europe.
The union representing Hollywood screenwriters was among industry voices arguing the deal should be blocked.
The Eastern and Western branches of the Writers Guild of America requested that the merger be blocked, saying that “the takeover of one of its biggest competitors by the world's largest streaming company is exactly what the antitrust laws were designed to prevent.”
“The result would be job losses, lower wages, worse conditions for all entertainment workers, higher prices for consumers and reduced volume and diversity of content for all viewers,” the organization said Friday.
