Trump Raises Antitrust Concerns Over Netflix-Warner Bros. Deal

President Trump has raised concerns regarding potential antitrust issues surrounding Netflix's planned $72 billion acquisition of Warner Bros. Discovery. As Trump noted upon arriving at the Kennedy Center, the market share of the combined entity could pose significant regulatory challenges.

He stated, 'That's got to go through a process, and we'll see what happens,' acknowledging his recent meeting with Netflix co-CEO Ted Sarandos, where they discussed the acquisition. Trump's comments have reportedly impacted market perceptions, with a prediction marketplace showing a drop from a 60% chance of the deal closing by 2026 to just 23% following his remarks.

In early trading, Warner Bros. shares rose by 1%, while Netflix's fell by 1.4%. The Justice Department's antitrust division is likely to scrutinize the deal, potentially arguing that it violates antitrust laws by pushing Netflix's market share beyond a critical 30% threshold.

Netflix plans to argue that its competition extends beyond traditional streaming services, citing platforms like YouTube and TikTok, which could mitigate concerns over market dominance. Additionally, Netflix contends that a significant portion of HBO Max subscribers are already Netflix users, suggesting the two services could coexist rather than compete.

The deal has drawn bipartisan scrutiny, with lawmakers expressing concerns over its potential consumer impact, while experts like Ed Yardeni suggest that technology monopolies tend not to last long due to emerging competition.