Donald Trump has thrown fresh uncertainty over Netflix Inc (NASDAQ:NFLX, XETRA:NFC) planned $72 billion takeover of Warner Bros Discovery Inc (NASDAQ:WBD, XETRA:J5A)y, warning that the combined group’s enlarged market share “could be a problem”.
His off-the-cuff remarks, made as he arrived at the Kennedy Center on Sunday, were enough to rattle both prediction markets and early trading, with bets on the deal closing by 2026 dropping sharply.
The acquisition would fuse Netflix, the world’s largest subscription streamer, with HBO Max and a major Hollywood studio, a combination almost certain to trigger a lengthy review by the US Justice Department.
Regulators could argue that the merged company would sail past the 30% market-share threshold often used as a warning sign in competition cases. Trump has signalled he will be directly involved in the process.
Netflix is reportedly preparing a robust defence, insisting the market is far broader than subscription video.
It is expected to argue that YouTube, TikTok, Disney+ and Amazon Prime all compete for the same attention, which dilutes its share.
The company is also expected to claim that because most HBO Max customers already pay for Netflix, the services are complementary rather than head-to-head rivals.
Politics adds further intrigue. Warner Bros. spurned Paramount Skydance, a studio with longstanding Trump connections, to pursue Netflix, a choice that may colour the debate in Washington.
Lawmakers across the aisle have already questioned whether the deal would harm consumers. Regulators in Europe and the UK are also preparing to scrutinise the plan closely, ensuring the takeover faces a global regulatory gauntlet.