President Donald Trump has expressed mixed views on Netflix's proposed $83 billion acquisition of Warner Bros., praising co-CEO Ted Sarandos while warning that the deal could create excessive market share in streaming. The merger, announced last Friday, awaits regulatory scrutiny from the Justice Department and Federal Trade Commission. Trump confirmed a recent White House meeting with Sarandos and stated he will be involved in the approval process.
Deal Overview
Netflix announced its blockbuster $83 billion deal to acquire Warner Bros. studios and its streaming assets, including HBO Max, on December 6, 2025. The agreement values Warner Bros. Discovery's equity at around $72 billion and is structured as $23.25 in cash plus $4.50 in Netflix stock per share. Netflix, with over 300 million global subscribers, would gain Warner Bros. Discovery's 128 million streaming users from HBO Max, Discovery+, and sports services. Executives project closure in 12-18 months, pending approvals, and have secured $59 billion in bridge financing from Wells Fargo.
The merger combines horizontal streaming rivals and vertical integration, potentially streamlining content distribution but raising fears of reduced competition for producers. Netflix co-CEO Ted Sarandos told analysts the deal is 'pro-consumer, pro-innovation, pro-worker, pro-creator, and pro-growth,' emphasizing that even post-merger, Netflix would hold less than 10% of U.S. TV viewing—comparable to YouTube but smaller than other conglomerates.
Trump's Remarks
Speaking on the red carpet at the Kennedy Center Honors in Washington, D.C., on December 8, Trump confirmed a recent Oval Office meeting with Sarandos, describing him as a 'fantastic man' and 'great person' who has done a 'legendary job' at Netflix. However, he flagged antitrust issues: 'It's a lot of market share... There's no question about it. It could be a problem.' Trump added that the deal 'will require a review' and affirmed, 'I'll be involved in that decision.' The meeting, held last week and lasting over an hour, also touched on federal film tax incentives, per sources.
Industry Reactions and Challenges
The deal outbid rivals like Paramount-Skydance and Comcast, with Paramount accusing Warner Bros. of an unfair process and hinting at legal action. Critics, including Sen. Elizabeth Warren, cite antitrust risks, while filmmakers like Jane Fonda call it 'catastrophic,' warning it could 'destroy our creative industry' by undermining theaters. Oscar winner Sean Baker urged creators to 'put foot down' on theatrical windows, vowing no big-studio pursuits post his film 'Anora.' A group of A-list producers is considering an open letter opposing the sale to protect cinema viability. Netflix reassures users that 'nothing is changing today,' but the outcome hinges on regulatory reviews by the DOJ and FTC, with no FCC involvement expected.
