According to Engadget, President Trump has publicly commented on Netflix’s proposed acquisition of Warner Bros. Discovery, stating the deal “could be a problem” due to its significant market share. The combined entity would control about 33% of the U.S. streaming video market, ahead of Prime Video’s 21%. Trump confirmed he will be personally involved in the regulatory approval process, which is expected to face intense antitrust scrutiny from the U.S. Justice Department. This follows a meeting in November where Netflix co-CEO Ted Sarandos reportedly argued to Trump that the deal wouldn’t create a monopoly. Meanwhile, Paramount, which previously expressed interest in Warner Bros. Discovery, may launch a hostile bid, and Hollywood unions are alarmed over potential job and theatrical distribution cuts.
The Regulatory Headwinds Are Real
Here’s the thing: when the President says he’s getting personally involved and uses phrases like “big market share,” that’s not a great sign. A 33% market share sounds dominant, but is it monopolistic in the fragmented streaming world? The DOJ will definitely be looking at it. But this isn’t just about subscriber numbers. It’s about content control. Netflix absorbing Warner Bros. means it gets HBO’s prestige library, DC Comics, massive film franchises, and a major movie studio. That’s a level of vertical integration that makes regulators very, very nervous. Sarandos might have thought he had a green light after that White House chat, but public comments like this change the game entirely. Now it’s a political issue, not just a regulatory one.
Why Netflix Wants This Mess
So why is Netflix even pursuing this, knowing the fight it’ll invite? Look, Netflix’s growth model has hit a wall. They’ve squeezed the subscription price lever and chased password sharers. Acquiring Warner Bros. Discovery isn’t just about adding subscribers—it’s about fundamentally changing their business. They’d instantly own a top-tier film and TV studio with decades of profitable IP. They’d get a huge theatrical distribution arm, which they’ve always lacked. Basically, they’d transform from a pure-play streamer into a full-blown, old-school media conglomerate overnight. The revenue would diversify massively, moving beyond just monthly subscription fees into box office, licensing, and cable network profits. For a company staring down competitors like Disney and Comcast, that’s the holy grail.
The Coming Drama
And let’s not forget the other players. Paramount launching a hostile bid? That’s a real possibility and would turn this into a chaotic bidding war. Hollywood’s unions are already “up in arms,” and for good reason. Netflix’s model is famously lean on back-end profits for talent and has a spotty record with theatrical releases. A lot of people’s livelihoods are tied to the traditional Warner Bros. way of doing business. I think the real question is: does Netflix even want the *whole* company? Or would they be happy to make some divestitures to get the deal through? Selling off parts, like the cable networks or maybe even the theatrical division, might be the price of admission. But then, what’s the point if you have to gut the very assets you’re buying?
This whole saga is a perfect snapshot of where the media industry is right now—desperate for scale, terrified of being left behind, and caught in a regulatory vise. Buckle up. It’s going to be a long, messy process.
