US: Trump casts doubt on Netflix-Warner Bros. deal

The US president has said "there could be a problem" with the proposed $82 billion deal that would see the streaming giant acquire the Hollywood studio. Donald Trump noted that Netflix already has a "big market share."

US President Donald Trump said Sunday that he would be involved in the review by federal regulators of a proposed consolidation deal between streaming platform Netflix and Hollywood studio Warner Bros.

The companies announced the agreement on Friday. Netflix would acquire parts of Warner Bros. Discovery for $72 billion (€61.8 billion) if the sale is completed.

The cash and stock transaction is valued at $27.75 per Warner Bros. share, with a total equity value of approximately $72 billion, reaching an enterprise value of $82.7 billion, which includes things like debt to be paid off.

If regulators approve, the deal would unite two of the biggest names in entertainment, Netflix and Warner Bros., the studio behind "Harry Potter," "Game of Thrones," and the DC films.

What did Trump say about the deal between Netflix and Warner Bros.?

"I'll be involved in that decision," Trump told reporters as he arrived at the Kennedy Center for its annual awards show.

The US president was referring to federal regulators reviewing the deal, which has raised antitrust concerns in Hollywood.

If the agreement is greenlit, Netflix — already the world's largest streaming platform — would control one of Hollywood's most recognizable film and TV houses.

While Trump did not comment on whether he supported the deal, the US president did suggest that Netflix's concentration of market power could be an issue.

"That's going to be for some economists to tell... But it is a big market share. There's no question it could be a problem," Trump said.

How has Hollywood reacted to the deal?

Cinema United, a trade organization that represents movie theaters across the US, said Friday that the deal risks eliminating 25% of the annual box office in the US and poses an "unprecedented threat" to cinemas around the world.

The Writers Guild trade union has called for the merger to be blocked.

"The world's largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent," the group said in a statement.

The director of "Titanic," James Cameron, said ahead of the announcement that any Netflix takeover of Warner Bros. would be a "disaster" for movie theaters, citing concerns that the streaming giant wants to limit cinema releases of its film productions.

Kathleen Brooks, a researcher at trading and investment firm XTB, told the AFP news agency Friday that Netflix is aiming to "dominate Hollywood." She warned that the deal raises a number of potential issues, namely a Netflix monopoly on the TV and movie business.

Editor's note: A previous version of this story had the wrong conversion for US dollars to euros, this has now been fixed. DW apologizes for the error.

Edited by: Dmytro Hubenko