UPDATE: President Donald Trump has raised significant concerns about the potential for regulatory challenges facing the $82.7 billion merger between Netflix and Warner Bros. Discovery. Speaking to reporters on December 8, 2023, from the red carpet of the Kennedy Center Honors in Washington, D.C., Trump stated that the merger must navigate a “process” before any approval can be granted.
“Netflix is a great company. They’ve done a phenomenal job,” Trump acknowledged, but emphasized the merger’s implications on market share. “It’s a lot of market share, so we’ll have to see what happens,” he added, prompting questions about the potential economic impact of Netflix acquiring Warner Bros., including its massive assets like HBO Max.
As the streaming giant seeks to finalize the deal—which includes Warner Bros.’ film and television studios—Trump’s comments highlight the heightened scrutiny such mergers face in today’s competitive market. “That’s going to be for some economists to tell,” he remarked, indicating that experts will play a crucial role in determining the merger’s fate.
Netflix announced its intention to acquire Warner Bros. on December 5, 2023, with a projected completion date in Q3 2026. The deal’s enterprise value of $82.7 billion and equity value of $72 billion underscore the significant scale of this transaction.
“Our mission has always been to entertain the world,” said Ted Sarandos, co-CEO of Netflix, in a statement upon the announcement of the merger. At the same event, Trump praised Sarandos as a “fantastic man” and noted that he had met with him in the Oval Office the previous week, although he did not disclose details of their discussion.
Trump’s remarks come at a pivotal time as Netflix boasts over 300 million paid memberships across more than 190 countries. The implications of this merger could reshape the streaming landscape, reflecting the ongoing battle for dominance among major content providers.
As the merger moves forward, the industry will be watching closely for updates on regulatory assessments and potential pushback from competition watchdogs. The outcome could have far-reaching effects not only on Netflix and Warner Bros. but also on the broader entertainment ecosystem.
For now, the future of this monumental merger hangs in the balance as both companies prepare for what may be a lengthy approval process. Industry analysts and viewers alike are eager to see how this pivotal moment will unfold.