Not a done deal? Donald Trump raises anritrust concerns over Netflix-Warner Bros tieup, says he’ll step in
United States President Donald Trump, According to reports, on December 7, the streaming giant raised concerns about antitrust “issues” arising from Netflix’s acquisition of rival and movie studio Warner Bros Discovery.
He said he would personally step in to check the process and details. Bloomberg reported.
Netflix-Warner deal: What Donald Trump said
“This has to go through a process, and we’ll see what happens,” Donald Trump told reporters at the John F Kennedy Center for the Performing Arts in Washington DC.
Donald Trump also confirmed that he met Netflix co-CEO Ted Sarandos. While complimenting the company, he added that the acquisition was something to consider: “But it’s a big market share. It could create problems.”
The President said that Netflix “has a very large market share, and with the presence of Warner Bros., this share has increased greatly.” Bloomberg And Reuters Both reported that Donald Trump confirmed that he would personally be involved in overseeing the process.
“I’ll be involved in that decision,” Donald Trump told reporters as he arrived at the Kennedy Center for the annual awards ceremony. Reuters in question.
However, he did not specify which direction his decision would take. “Some economists will say that… But that’s a big market share. There’s no question it could be a problem,” Donald Trump said. Reuters report.
There’s a long way to go: Netflix acquisition of Warner Bros raises red flags
Bloomberg The report added that Netflix’s $72 billion bid for Warner Bros. Discovery would create the world’s largest streaming player, surpassing its fourth-largest rival, HBO Max. It is this market share expansion that has raised the concerns of antitrust regulators.
Netflix’s deal could be considered illegal because its total market share with Warner would put it above the 30% threshold, according to the U.S. Department of Justice’s antitrust division. B.B. the report said. The Justice Department may be the government body that will review the agreement.
Netflix, in particular, is expected to claim that the inclusion of video platforms YouTube (Google) and TikTok (ByteDance) in its market analysis would “significantly” reduce its “perceived” market dominance. Bloomberg report added.
Netflix’s Sarandos, who wants to pave the way for the controversial deal, recently met with Trump at the White House. Sources told Bloomberg“The executive argued at the time that Netflix was not a very strong monopoly and had experienced its own subscriber losses a few years ago.”
(With input from institutions)
