Netflix Warner Bros Acquisition Faces Antitrust Scrutiny After Trump Warning

President Donald Trump has raised antitrust concerns about Netflix‘s planned $72 billion purchase of Warner Bros. Discovery. He made the comments publicly on Sunday. The deal would combine the world’s top streaming service with a major Hollywood studio.

Trump confirmed he recently met with Netflix co-CEO Ted Sarandos. He stated the combined company’s market share “could be a problem.” This signals potential regulatory hurdles for the historic entertainment merger.

Deal Review Could Reshape Streaming Landscape

The acquisition would create a streaming giant with roughly 450 million users. According to Bloomberg, the U.S. Justice Department will conduct a lengthy antitrust review. Regulators may argue the deal puts Netflix over a critical 30% market share threshold.

Market reaction was swift. Bets on Polymarket showed a sharp drop in the deal’s perceived likelihood of closing. Warner Bros. stock rose slightly in early trading, while Netflix shares fell. The review process will now be closely watched by the entire industry.

Broader Political and Regulatory Impact Looms

The deal has already drawn criticism from lawmakers across the political spectrum. Figures like Senator Elizabeth Warren have called it harmful for consumers. Netflix is expected to argue that competitors like YouTube and TikTok should be included in market analyses, which would lessen its apparent dominance.

European and UK regulators are also likely to launch intensive reviews. The outcome will set a precedent for future media consolidation. Consumers may eventually see changes in subscription pricing and content availability depending on the final ruling.

The proposed Netflix Warner Bros acquisition now enters a period of intense regulatory uncertainty. President Trump’s antitrust warning adds significant political pressure to an already complex deal. The future of streaming may hinge on this review.

A quick knowledge drop for you

Q1: What did President Trump say about the Netflix deal?

President Trump said the deal has “got to go through a process.” He expressed concern that combining Netflix and Warner Bros. creates a “big market share” that “could be a problem” from an antitrust perspective.

Q2: What is the main antitrust concern?

The primary concern is market dominance. Regulators fear the combined entity would control too large a share of the streaming market, potentially reducing competition and harming consumer choice.

Q3: How did financial markets react?

Prediction markets slashed the odds of the deal closing by 2026. Netflix’s stock price dipped, while Warner Bros. shares saw a slight increase in early trading following the news.

Q4: What is Netflix’s likely defense?

Netflix will likely argue the market definition should include all online video, like YouTube and TikTok. This would make its market share appear much smaller and justify the merger.

Q5: Who else is reviewing this acquisition?

Beyond the U.S. Justice Department, European Union and United Kingdom regulators are expected to subject the deal to intense scrutiny. A global review process is underway.

Q6: What was the reported meeting about?

Bloomberg reported that Netflix co-CEO Ted Sarandos met with President Trump to lobby for the acquisition. He argued Netflix is not a monopoly and faces strong competition.