Trump says $72bn Netflix-Warner Bros deal ‘might be an issue’

US President Donald Trump has flagged potential issues over Netflix’s deliberate $72bn (£54bn) deal to purchase Warner Brothers Discovery’s film studio and well-liked HBO streaming networks.

At an occasion in Washington DC on Sunday, he mentioned Netflix has a “large market share” and the corporations’ mixed dimension “might be an issue”.

On Friday, the 2 firms mentioned they’d reached an settlement to carry Warner Brothers’ franchises like Harry Potter and Recreation of Thrones to Netflix, creating a brand new media big.

The deliberate deal, which has raised issues amongst some within the business, is but to be authorized by competitors authorities. The BBC has contacted Warner Bros, Netflix and the White Home for remark.

Launched in 1997 as a postal DVD rental enterprise, Netflix has grown to turn out to be the world’s largest subscription streaming service. The deal, the largest the movie business has seen in a very long time, would cement its primary place.

Beneath the settlement a number of international leisure franchises, akin to Looney Tunes, The Matrix and Lord of the Rings, would transfer to Netflix.

The deal is anticipated to be accomplished after Warner Bros splits its enterprise within the second half of 2026.

The US Justice Division’s competitors division, which oversees main mergers, might contend that the deal violates the legislation if the mixed companies account for an excessive amount of of the streaming market.

At an occasion on the John F Kennedy Heart within the US capital, Trump mentioned that Netflix has a “very large market share” which might “go up by quite a bit” if the deal goes forward.

Trump added he could be personally concerned within the choice on whether or not or to not approve the deal and repeatedly highlighted the scale of Netflix’s market share.

He additionally mentioned that Netflix’s co-CEO Ted Sarandos just lately visited the Oval Workplace and praised him for his work on the firm.

“I’ve a whole lot of respect for him. He is an incredible individual,” mentioned Trump. “He is accomplished one of many biggest jobs within the historical past of flicks.”

Mr Sarandos earlier acknowledged that the settlement might have shocked traders however mentioned it was an opportunity to place Netflix for achievement within the “a long time to return”.

Invoice Kovacic, a former chair of the US competitors watchdog the Federal Commerce Fee, instructed the BBC’s At present programme that Trump’s feedback meant negotiations over any issues surrounding the deal had been “going to run by the White Home”.

“That implies that we will have most likely a deep stage, an unprecedented stage of presidential management within the decision of what was once a technical evaluation of a merger,” he mentioned.

Netflix beat a number of rivals together with Comcast and Paramount Skydance to strike an settlement with Warner Bros.

Paramount Skydance, which is headed by David Ellison, had beforehand tried to purchase all of Warner Bros, together with its cable networks.

Warner Bros rejected that strategy earlier than placing itself up on the market.

David Ellison’s multi-billionaire father, Larry Ellison, is an in depth ally of Trump.

The Writers Guild of America’s East and West branches referred to as for the merger to be blocked, saying the “world’s largest streaming firm swallowing certainly one of its largest rivals is what antitrust legal guidelines had been designed to forestall.”

“The result would get rid of jobs, push down wages, worsen situations for all leisure staff, increase costs for customers and scale back the amount and variety of content material for all viewers,” it mentioned on Friday.