Trump hints Netflix-Warner Bros Discovery mega deal may face regulatory heat

New Delhi: US President Donald Trump has effectively put Netflix’s $82.7-billion takeover of Warner Bros Discovery’s studios and streaming business under the regulatory scanner, warning that the merger involves “a lot of market share” and will have to “go through a process”.

BestMediaInfo reported on December 5 that Netflix has agreed to buy Warner Bros Discovery’s film and TV studios and streaming division in a cash-and-stock transaction valuing the business at about $82.7 billion.

Under the agreement, Warner Bros Discovery (WBD) shareholders will receive $23.25 in cash and roughly $4.50 in Netflix stock per share. The offer values WBD at $27.75 a share and around $72 billion in equity, with the rest of the enterprise value coming from assumed debt.

The deal would give Netflix control of some of Hollywood’s most powerful franchises, including Harry Potter, Game of Thrones, Friends, the DC universe and Warner’s classic film and TV library, alongside Netflix originals such as Stranger Things and Squid Game.

The transaction covers Warner’s studio and streaming assets such as HBO, HBO Max and Warner Bros Television and Motion Picture Group. It excludes cable networks including CNN, Discovery and TNT Sports, which will be spun off into a separate, publicly traded company called Discovery Global before the Netflix deal closes.

Shows and films such as The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz and the broader DC Universe would sit under the same corporate umbrella as Netflix’s hit series including Wednesday, Money Heist, Bridgerton, Adolescence and films such as Extraction.

Reacting to the deal, Trump said: “That has to go through a process, and we will see what happens. Netflix is a great company... But it’s a lot of market share, so we will have to see what happens.”

The comment is being read as a clear signal that regulators in the US and Europe will subject the transaction to heavy antitrust scrutiny, given it combines the world’s largest subscription streamer with a major Hollywood studio group and premium service HBO Max, which together count well over 200 million streaming subscribers.

The separation of Discovery Global is expected to be completed in the third quarter of 2026, with the Netflix–Warner deal slated to close 12–18 months from now, subject to shareholder approvals and regulatory clearance.

Netflix has also agreed to a $5.8-billion breakup fee if it walks away from the deal, while Warner Bros Discovery would owe $2.8 billion if it withdraws, underscoring the execution risk both sides see around approvals.

Netflix co-CEO Ted Sarandos has said the combination would advance the company’s mission “to entertain the world”, arguing that bringing Warner’s century-old studio and premium HBO programming under the same roof as Netflix’s global streaming platform would “give audiences more of what they love” and help define “the next century of storytelling”.

Warner Bros Discovery chief executive David Zaslav has framed the deal as the next chapter for a company that has spent more than 100 years shaping global culture through its films and series, saying that joining forces with Netflix would ensure those stories reach even larger audiences worldwide in the years ahead.

Addressing concerns in Hollywood, Netflix has pledged to maintain Warner’s theatrical release model for its studio films, a key issue for cinema owners and creatives who feared a streaming owner could push more titles straight to OTT.

The agreement capped months of intense speculation and a competitive bidding process. Paramount Skydance and Comcast had also pursued Warner Bros Discovery after the company signalled in October that it was open to a sale as part of a broader restructuring.

Reuters reported that Netflix’s near-$28 per share offer for the studios-and-streaming business effectively eclipsed rival bids, with the final terms reflecting a premium of more than 120% to WBD’s share price before deal talks became public in September.

Following the announcement, Warner Bros Discovery shares rose in early trading, while Netflix and some rival media stocks fell amid investor concerns over deal costs and potential regulatory hurdles.

Beyond the immediate market reaction, Trump’s “lot of market share” warning places an added political overhang on a transaction already expected to face detailed competition tests. Any extended review, additional conditions or possible remedies could now become central to how and when Netflix is able to close on Warner’s studios and HBO assets.