How will Hollywood change if Netflix buys Warner Bros.
Netflix has announced that it will acquire Warner Bros., the legendary Hollywood studio that includes HBO and HBO Max, in a deal worth $72 billion.
President Donald Trump has addressed Netflix’s proposed $72 billion acquisition of Warner Bros. Discovery, saying he will be involved in the review and that the combined company’s market share “could be an issue.”
On December 7, President Trump told reporters upon arriving at the Kennedy Center Honors in Washington, D.C., that he had met with Netflix co-CEO Ted Sarandos. The president did not say whether he supported approving the deal, but he praised Sarandos and noted that Netflix has “a very large market share.”
“And when you have Warner Bros. under your umbrella… your market share goes up significantly,” Trump said. “That’s for some economists to decide…but this is a large market share. There’s no question it could be an issue.”
Netflix announced on December 5 that it has agreed to acquire Warner Bros. Discovery’s television and movie studios and streaming division for $72 billion. This will give the streaming pioneer control of one of Hollywood’s most valuable and oldest assets.
The deal follows a weeks-long bidding war in which Netflix took the lead with an offer of about $28 per share, outpacing Paramount Skydance’s bid of about $24 for the entire Warner Bros. Discovery, including the cable TV assets that are to be spun off.
The planned acquisition faces political opposition and antitrust concerns. Congressional Republicans have warned that a Netflix acquisition would reduce consumer choice and give the company an unacceptably high share of the streaming market.
Utah Republican Sen. Mike Lee, who heads the antitrust subcommittee, said on Dec. 3 that Netflix’s acquisition of Warner Bros. Discovery’s streaming assets “should be a wake-up call to antitrust enforcement officials around the world.” Democrats, including Sen. Elizabeth Warren, have also criticized the deal.
“This agreement is an antitrust nightmare,” Warren said in a statement. “A merger between Netflix and Warner Bros. would create a massive media behemoth that would control nearly half of the streaming market. It could force Americans to pay higher subscription prices, reduce their choices in what and how they watch, and put American workers at risk.”
Netflix said the partnership will create jobs and deliver “greater benefits” to its 300 million subscribers. The deal eliminates competition between HBO Max and Netflix and is likely to face significant antitrust review by the Justice Department.
Contributions: Mike Snider, Daniel de Visé, James Powel, USA TODAY. Reuters
