After Netflix announced that it was acquiring Warner Bros. Discovery last week, observers immediatley wondered when or if the deal could obtain regulatory approval. Now, President Trump has made comments indicating that said approval is likely to take awhile if it happens at all, Bloomberg reported.
“Well, that’s got to go through a process, and we’ll see what happens,” Trump told reporters in a recent Q&A scrum. “But it is a big market share. It could be a problem.” The President added that he will be personally involved in the approval process.
As we pointed out last week, Netflix and HBO Max combined would account for around 33 percent of the US streaming video market, ahead of Prime Video’s 21 percent share and likely enough to attract the antitrust division of the US Justice Department. For its part, Netflix has said that it will “maintain Warner Bros. current businesses,” which includes HBO Max and HBO, theatrical releases for films as well as movie and TV studio operations.
Headwinds were likely with any deal, so in November Netflix’s co-CEO Ted Sarandos reportedly met with Trump at the White House, arguing that the acquisition wouldn’t create a monopoly. Trump said that Warner Bros. Discovery should sell to the highest bidder, and Sarandos left the meeting feeling that Netflix wouldn’t face White House opposition in the short term.
Even before regulators address the acquisition, more drama may ensue. Paramount, which first expressed interested in buying WBD when it wasn’t even for sale, may launch a hostile bid. And Hollywood’s unions and guilds are up in arms over fears that Netflix may significantly reduce Warner Bros.’ theatrical distribution, along with its back end profits and production jobs.