Trump Pressures DOJ Over Netflix-Warner Bros. Merger Amid Antitrust Fears

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U.S. President Donald Trump has publicly raised concerns about Netflix's $72 billion proposed acquisition of Warner Bros. Discovery, warning that the combined entity could dominate the streaming market and pose antitrust challenges. Speaking at the Kennedy Center, Trump emphasized the need for regulatory review, noting that the deal would create an entity with "a lot of market share" according to reports. His remarks add political pressure to a deal already facing scrutiny from antitrust experts and lawmakers.

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The deal, which aims to merge the world's top streaming platform with Warner Bros. Discovery's film and TV studios, has drawn attention from across the globe. In India, industry analysts warn that the merger could intensify competition for regional streaming platforms and reduce opportunities for local content producers to scale. Meanwhile, in the U.S., the Independent Cinema Alliance has expressed fears that the deal could further reduce theatrical movie releases, harming both big and small theaters.

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Trump's comments also extend to the media arm of Warner Bros. Discovery, with the president suggesting that CNN should be sold as part of the deal or separately. Known for his frequent criticism of the network, Trump labeled CNN as "one of the worst in the business" and questioned its relevance. This stance aligns with broader skepticism about media consolidation and editorial independence.

Political and Regulatory Scruty Deepens

Trump's vocal opposition highlights the increasing political stakes of the deal. While he praised Netflix co-CEO Ted Sarandos as a "fantastic man," he stressed that the transaction would require close examination due to its potential impact on market power according to reports. The Justice Department's antitrust division is expected to scrutinize the merger, with legal experts noting that the combined market share could exceed the 30% threshold, a key red flag for regulators according to reports.

Meanwhile, Paramount Skydance has entered the fray with a competing $30-per-share hostile bid for Warner Bros. Discovery. In a letter to shareholders, CEO David Ellison argued that his offer is superior to Netflix's, emphasizing the need for a faster and more predictable approval process according to a statement. This development has intensified the battle for WBD's assets and raised questions about how the company will navigate the competing proposals.

Global Concerns and Market Reactions

The potential merger has sparked a wave of concern among international media stakeholders. In India, media industry leaders warn that the deal could limit the availability of content and affect the competitive landscape for regional streaming services according to industry analysis. Some fear that consolidation will force smaller platforms to differentiate themselves through niche genres and local-language content, rather than competing on scale.

The U.S. theatrical industry is also reacting with alarm. Movie theater operators and cinema trade groups have called the deal an "unprecedented threat" to the global exhibition business according to industry reports. AMC and Cinemark shares fell sharply following the announcement, reflecting investor worries about the future of theatrical releases. While Netflix has pledged to honor existing release agreements through 2029, critics remain skeptical about its long-term commitment to traditional moviegoing.

What This Means for Consumers and Investors

For consumers, the deal could reshape content availability and pricing models. Netflix has suggested that theatrical windows will "evolve" to become more "consumer-friendly," though it has not yet outlined specific changes according to company statements. The company also indicated that HBO and HBO Max titles will remain available for Netflix subscribers, raising questions about how the services will be bundled or priced in the future.

Investors are closely watching the regulatory and political developments. The Justice Department's stance, the outcome of the bidding war with Paramount, and potential shareholder reactions could all influence the deal's final structure. Given the high stakes, the coming months are likely to bring significant legal and legislative scrutiny, shaping the future of the global entertainment landscape.