U.S. President Donald Trump has expressed potential antitrust concerns regarding Netflix's (NFLX.US) planned acquisition of Warner Bros. Discovery (WBD.US), citing the merged entity's market share as a possible issue. When asked about the deal on Sunday, Trump stated, "Well, this will go through a process, and we'll see how it turns out." He confirmed a recent meeting with Netflix CEO Ted Sarandos and praised the streaming giant.
Trump noted, "But this is a very big market share. It could be a problem. Netflix already has a significant share, and combining with Warner Bros. would substantially increase it." He added that he would personally be involved in the decision-making process.
The $72 billion deal would merge the world's top-ranked streaming service with the fourth-largest HBO Max, raising concerns among antitrust regulators. The U.S. Department of Justice's antitrust division will review the transaction, which could be deemed illegal if the combined market share exceeds the 30% threshold.
Netflix is expected to argue that competitors like Google's (GOOGL.US) YouTube and ByteDance's TikTok should be included in market analysis, thereby diluting its perceived dominance. Earlier reports indicated that Sarandos met with Trump at the White House to advocate for the deal, emphasizing that Netflix is not an all-powerful monopoly and has faced subscriber losses in the past.
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