Trump Says Netflix’s WBD Deal ‘Could Be a Problem’ Amid Hostile Paramount Bid
President Donald Trump cast fresh doubt Sunday night on Netflix’s surprise move to buy major pieces of Warner Bros. Discovery, signaling that the massive entertainment deal may face significant scrutiny from his administration. Speaking on the Kennedy Center red carpet, Trump said the acquisition “could be a problem” given the size of the streaming platform’s footprint.
Speaking to reporters on Sunday, when asked directly whether regulators should allow the transaction, Trump replied, “Well, that’s the question.”
“They have a very big market share. And when they have Warner Brothers, you know, that share goes up a lot. So, I don’t know, that’s going to be for some economists to tell. I’ll be involved in that decision, too.”
Netflix’s proposed purchase, announced Friday, would include WBD’s famed film studio and streaming properties such as HBO Max and comes with an enterprise value of roughly $83 billion. A senior Trump administration official told CNBC that the White House is looking at the proposal with “heavy skepticism.”
Trump also remarked that Netflix co-CEO Ted Sarandos, whom he met with in the Oval Office last week, made “no guarantees” about the outcome of the merger. Still, Trump offered praise.
“He’s a great person. He’s done one of the greatest jobs in the history of movies and other things, and he’s got a lot of interesting things happening, aside from what you’re talking about. But it is a big market share. There’s no question. It could be a problem.”
The uncertainty around Netflix’s bid has opened an opportunity for rivals. Paramount and Skydance announced Monday that they are moving ahead with a hostile effort to purchase all of WBD after losing out to Netflix in the initial round.
David Ellison, Skydance’s CEO, told CNBC’s “Squawk on the Street,” “We’ve had great conversations with the president about this, but I don’t want to speak for him.” His father, Oracle billionaire Larry Ellison, is a longtime Trump ally.
Paramount disclosed in a Securities and Exchange Commission filing that its offer is being supported in part by Jared Kushner, Trump’s son-in-law and former White House advisor, through his firm Affinity Partners. The filing further revealed that investment funds tied to Saudi Arabia, Abu Dhabi, the United Arab Emirates, and Qatar are also participating.
According to the document, Affinity Partners and the Gulf state investors “have agreed to forgo any governance rights, including board representation, associated with their non-voting equity investments.” Because of that structure, the filing argues, “the Transaction will not be within CFIUS’s jurisdiction,” referring to the Committee on Foreign Investment in the United States.
The competing bids come as lawmakers and industry competitors raise alarms about potential anticompetitive effects. Sen. Elizabeth Warren, D-Mass., called the proposed Netflix–WBD deal “an anti-monopoly nightmare.” Paramount, in a recent letter cited by The Wall Street Journal, warned WBD’s legal team that any sale to Netflix would “never close” due to expected regulatory challenges both domestically and abroad.
Comcast had also explored acquiring WBD’s film and streaming divisions before Netflix emerged as the preferred buyer.
WBD, meanwhile, has laid out broader restructuring plans. Alongside the potential asset sale to Netflix or Paramount, the company intends to spin out Discovery Global — a new entity encompassing CNN, TNT Sports, and Discovery-branded channels.
Moumita Basuroychowdhury is a Contributing Reporter at The National Digest. After earning an economics degree at Cornell University, she moved to NYC to pursue her MFA in creative writing. She enjoys reporting on science, business and culture news. You can reach her at moumita.b@thenationaldigest.com.
