Trump has warned of interference as Netflix looks to buy Warner Bros., which could make the deal approval process politically complicated.
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US President Donald Trump has objected to streaming platform Netflix's purchase of iconic film studio Warner Bros. Discovery and HBO Max.
Netflix announced on Friday that it had moved forward with its $72 billion acquisition of Warner Bros. At a recent event in Washington, D.C., Trump said Netflix's market share was already large and would increase further after the acquisition, which could be a "problem," BBC journalist Osmond Shea wrote.
Netflix and Warner Bros. have reached an agreement to merge the two companies' vast content libraries, including Warner's popular franchises such as "Harry Potter," "Game of Thrones," and "Lord of the Rings." The deal is still subject to regulatory approval from the U.S. Department of Justice's Office of Competition and Consumer Protection. The agency could also raise questions about whether the merger between Netflix and HBO would create a monopoly in the streaming market.
The deal is considered the biggest deal in the entertainment industry. At an event held at the John F. Kennedy Center, Trump expressed his fear that Netflix's market share is already 'too big' and that if it also acquires Warner Bros., Netflix will remain dominant. Therefore, he said that he will play a direct role in the approval process of the purchase agreement.
American analysts have pointed out that the process is 'directed by the White House rather than technical analysis' due to Trump's comments. Netflix has succeeded in reaching a purchase agreement with Warner Bros. by beating Comcast and Paramount Skydance.
Earlier, Paramount Skydance chief David Ellison also tried to buy Warner. Since Ellison's father, Larry Ellison, is a close friend of Trump, there is also speculation that Trump may support Ellison by rejecting the merger of Netflix and Warner.
