A seismic shift in the entertainment landscape was proposed last week when Netflix announced its intention to acquire the studio and streaming assets of Warner Bros. Discovery. The deal, valued at over USD 80 billion, would unite two of the world's most powerful content libraries and streaming platforms. However, the path to regulatory approval has hit a significant hurdle, with President Donald Trump publicly questioning the merger's impact on market competition, setting the stage for a high-stakes antitrust review.
A Landmark Deal Faces Immediate Scrutiny
Announced on December 5, 2025, the proposed acquisition would see Netflix pay USD 27.75 per share for Warner Bros. Discovery's studio business and its flagship streaming service, HBO Max. Warner Bros. Discovery plans to spin off its linear TV networks, including CNN and TNT, into a separate entity. The transaction, one of the largest in media history, is projected to close no sooner than the third quarter of 2026, pending regulatory approvals. The combination would bring iconic franchises like Harry Potter, Game of Thrones, DC Studios, and The Lord of the Rings under the Netflix umbrella, fundamentally altering the balance of power in Hollywood.
Deal Financials & Structure
- Acquirer: Netflix
- Target Assets: Warner Bros. Discovery's studio business & HBO Max streaming service
- Offer Price: USD 27.75 per share
- Total Deal Value: > USD 80 billion
- Excluded Assets: Warner Bros. Discovery's linear TV networks (e.g., CNN, TNT) to be spun off into a separate company.
- Projected Close: No sooner than Q3 2026.
Presidential Intervention Amplifies Antitrust Fears
The deal's regulatory prospects became more complicated on Sunday, December 8, when President Trump addressed reporters at the Kennedy Center Honors in Washington D.C. He stated he would be "involved" in the decision and repeatedly emphasized the issue of market share. "Netflix has a very big market share, and when they have Warner Brothers, you know, that share goes up a lot," Trump said. He characterized the merger by saying, "There’s no question about it. It could be a problem." These comments directly amplify concerns already voiced by lawmakers and industry observers who fear the merger would create a dominant force capable of stifling competition in the streaming and film production markets.
Regulatory and Political Hurdles Mount
The Justice Department is expected to undertake a lengthy and rigorous review of the merger. President Trump's remarks suggest the White House may take a keen interest in the process. His comments align with pre-existing criticism from figures like Democratic Senator Elizabeth Warren of Massachusetts, who labeled the deal "an anti-monopoly nightmare." Furthermore, former WarnerMedia CEO Jason Kilar argued on social media that he could not think of "a more effective way to reduce competition in Hollywood." The central question for regulators will be whether the combined entity's control over a vast content library and subscriber base would harm consumers and rival companies.
Notable Statements of Concern
- President Donald Trump (Dec 8): "It could be a problem... They have a very big market share and when they have Warner Bros., you know, that share goes up a lot."
- Sen. Elizabeth Warren (D-MA): Called the deal "an anti-monopoly nightmare."
- Jason Kilar, former WarnerMedia CEO: "I cannot think of a more effective way to reduce competition in Hollywood than selling WBD to Netflix."
Industry Implications and Unanswered Questions
Beyond antitrust, the merger raises profound questions about the future of entertainment. A major point of uncertainty is the theatrical film market. Warner Bros. has a history of major theatrical releases, while Netflix has famously prioritized its streaming platform. It is unclear if Netflix would continue Warner Bros.'s theatrical commitments long-term, potentially shrinking the number of major studio films in cinemas. The deal also represents a strategic coup for Netflix, which outmaneuvered rivals like Comcast and Paramount Skydance to secure the acquisition, solidifying its position as the undisputed leader in the streaming wars.
Key Warner Bros. Intellectual Property Included The acquisition would bring major franchises and studios to Netflix, including:
- Harry Potter
- Game of Thrones / HBO
- DC Studios
- The Lord of the Rings
- The Matrix
- Looney Tunes
A Defining Moment for Media Consolidation
As the process unfolds, the Netflix-Warner Bros. Discovery deal has become a litmus test for media consolidation in the digital age. The combination of President Trump's skeptical stance, intense regulatory scrutiny, and industry anxiety ensures a contentious review period. The outcome will not only determine the fate of two corporate giants but will also set a precedent for how governments address market concentration in the rapidly evolving global entertainment industry. All eyes will now be on the Justice Department and the White House as they weigh the benefits of corporate scale against the risks of diminished competition.