Key Points
- President Trump publicly raised antitrust concerns about Netflix’s $72 billion plan to buy Warner Bros.
- He stated the combined company’s large market share “could be a problem.”
- The deal’s chances of approval plummeted on prediction markets immediately following his comments.
- Netflix remains confident, backing its bid with a massive $5.8 billion breakup fee if the deal fails.
President Donald Trump has raised a major red flag over Netflix’s planned $72 billion takeover of Warner Bros. Discovery, suggesting the deal could create an illegal monopoly. His comments on Sunday are sparking fears that regulators might move to block the industry-shaking merger.
Speaking to reporters, Trump confirmed he had recently met with Netflix co-CEO Ted Sarandos. When asked about the deal, the president was blunt. “Well, that’s got to go through a process, and we’ll see what happens,” Trump said. “But it is a big market share. It could be a problem.” He added that he will be personally involved in the decision-making process.
The market reacted immediately to the president’s warning. The odds of the deal closing by 2026 on the prediction marketplace Polymarket plunged from 60% to just 23%. The proposed merger would combine the world’s number one streaming service with HBO Max, giving the new company control of roughly 30% of the streaming market.
For its part, Netflix remains publicly optimistic. Sarandos told investors he is “highly confident in the regulatory process,” arguing the deal is good for consumers and workers. To back up that confidence, Netflix has agreed to pay Warner Bros. a massive $5.8 billion breakup fee if regulators kill the deal—one of the largest such fees in history.
Netflix is expected to argue that its true competitors include not just other streamers like Disney and Amazon, but also platforms like YouTube and TikTok.
However, the company is facing a tough battle. The deal has already drawn criticism from both Republican and Democratic lawmakers, and now it has the president’s direct attention.
