Trump Warns of Antitrust Risks in Netflix-Warner Bros. Deal

US President Donald Trump's comments on the potential antitrust implications of Netflix's planned acquisition of Warner Bros. Discovery have sent shockwaves through the global entertainment industry. The $72 billion deal, which would combine the world's largest streaming service with the iconic Hollywood studio, is set to undergo a lengthy review by the US Justice Department's antitrust division. The proposed acquisition has sparked concerns among regulators and investors, with Trump noting that the combined entity's market share could pose a problem. "Well, that's got to go through a process, and we'll see what happens," Trump said, confirming that he had recently met with Netflix co-CEO Ted Sarandos. The market reacted swiftly, with bets on prediction marketplace Polymarket showing a 23% chance of Netflix closing the acquisition by the end of 2026, down from around 60% just before Trump's comments. Warner Bros. Discovery shares rose 1% in early trading, while Netflix dropped 1.4%. The deal would create a behemoth in the global entertainment industry, combining Netflix's 220 million subscribers with HBO Max's 70 million subscribers. The combined entity would control a significant share of the global streaming market, with estimates suggesting that it would account for around 40% of the market share in the US alone. The global streaming market has experienced rapid growth in recent years, with the pandemic driving a surge in demand for online entertainment. According to a report by Deloitte, the global streaming market is expected to reach $229 billion by 2025, up from $140 billion in 2020. The market is dominated by a handful of players, including Netflix, Amazon Prime Video, and Disney+, with smaller players such as HBO Max and Apple TV+ struggling to gain traction. The proposed acquisition has significant implications for the global entertainment industry, with many analysts predicting that it could lead to a wave of consolidation in the sector. The deal would create a powerful player with significant resources and a vast library of content, making it a major force in the global entertainment industry. The review process is likely to be lengthy and complex, with regulators scrutinizing the deal for potential antitrust implications. The US Justice Department's antitrust division has a reputation for being tough on large mergers, and the proposed acquisition is likely to face significant scrutiny. In the long term, the deal could have significant implications for the global entertainment industry, with many analysts predicting that it could lead to a shift towards more consolidation and fewer players in the market. However, the outcome of the review process remains uncertain, and investors will be watching closely as the deal unfolds. The proposed acquisition has also sparked concerns about the impact on content creators and producers, with many fearing that the combined entity could exert significant control over the types of content that are produced and distributed. The deal has been met with skepticism by some in the industry, with many arguing that it could lead to a homogenization of content and a loss of diversity in the market. In conclusion, the proposed acquisition of Warner Bros. Discovery by Netflix has sent shockwaves through the global entertainment industry, with regulators and investors watching closely as the deal unfolds. The outcome of the review process remains uncertain, but one thing is clear: the deal has significant implications for the global entertainment industry and could shape the market for years to come.