Hollywood is holding its breath because the proposed deal in which Netflix would acquire the film studios and streaming assets of Warner Bros Discovery (WBD) for billions would change the entire entertainment landscape.
But now the fate of that deal may rest not just with regulators and corporate boards but also with US President Donald Trump.
Why Donald Trump's Getting Involved
As per sources, on 7th December, while the US President was arriving at a public event, Trump told reporters plainly, 'I'll be involved in that decision.' The deal here would see Netflix absorb Warner Bros Discovery's TV and film studios, and its streaming division, including HBO Max. Netflix itself reports the acquisition price as $72 billion (£53.98 billion), and when debt and other considerations are added, the total enterprise value reaches roughly $82.7 billion (£62.0 billion approx).
Moreover, the size of the deal clearly shows its potential to radically and definitely change the entertainment industry. If completed, Netflix would gain control of an enormous trove of content, including everything from blockbuster franchises like the DC Universe, Harry Potter, and Game of Thrones to years and years of film and television output from one of Hollywood's most historic studios, Warner Bros.
Trump did not go as far as to say whether he supported or opposed the merger as of this writing. But he pointed out serious worries about the combined market power of Netflix and Warner Bros. 'They have a very big market share,' he said, 'and when they have Warner Brothers, you know, that share goes up a lot. It could be a problem.'
Furthermore, given Trump's public promise to participate in the review, this suggests a potentially more challenging, more political path ahead for the megamerger than many anticipated.
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Why the Netflix and Warner Deal is Worrying
Even before the US President's comments, the merger faced a whole lot of pushback. Analysts, according to a Forbes report, warn that a combined Netflix–Warner entity could control between 30 and 40% of the US streaming market, a dominance that could attract scrutiny from the US Department of Justice (DOJ) and perhaps even the Federal Trade Commission (FTC).
Furthermore, according to a report by The Guardian, critics argue the consequences could go beyond corporate competition. Some say that such consolidation might reduce content diversity, limit opportunities for smaller studios and creators, and ultimately harm consumers.
Moreover, others fear it could damage theatrical film releases, as films produced by the merged entity might be withheld from cinemas in favour of streaming, potentially damaging the whole film ecosystem.
On the other hand, Netflix insists the merger will deliver benefits; in its announcement, the company stressed that the union of its global streaming reach with Warner's production strength and rich content libraries would create a stronger 'studio-plus-streaming' powerhouse. Netflix has promised to maintain theatrical releases, continue producing high-quality films and series, and expand opportunities for creators and talent.
Still, the scale of consolidation and the concentration of content and distribution power within a single company remain highly controversial. At this stage, the deal is far from final. The merger depends on regulatory approvals in the US and possibly abroad, and the companies must complete a planned separation of Warner Bros Discovery's global networks division before closing.
That spin-off means it will separate assets such as CNN and certain cable networks into a new company, which is expected to be completed by Q3 2026. Only then could the Netflix–Warner transaction proceed.
