The incoming Trump administration is signaling notable caution toward Netflix’s surprise $72 billion effort to acquire major assets from Warner Bros. Discovery, a move that could reshape the entertainment industry and intensify antitrust battles in Washington.
The proposed agreement, announced Friday, would give Netflix control of Warner Bros.’ historic film studio and its influential HBO Max streaming service. The deal arrives after months of competitive interest, with Paramount and Skydance repeatedly pursuing full ownership of the Warner Bros. Discovery portfolio, noted CNBC.
A senior administration official, appearing on CNBC with correspondent Eamon Javers, conveyed “heavy skepticism” about Netflix’s attempt to link with Warner Bros. Discovery. The sentiment reflects growing unease inside President-elect Donald Trump’s orbit that the transaction could further concentrate power in a media sector already dominated by a handful of global players.
Lobbying activity has escalated sharply. On Wednesday, Paramount Skydance CEO David Ellison met with Trump advisers and key lawmakers to outline concerns about Netflix emerging as Warner Bros. Discovery’s chosen merger partner. A Thursday New York Post report described Ellison’s efforts to highlight the potential downsides of a Netflix-led deal for both regulators and the broader industry.
Ellison’s father, Oracle co-founder Larry Ellison, is a long-time ally of President-elect Trump — a relationship that could provide Paramount additional leverage as the White House and Congress evaluate competing bids.
Regulatory resistance is expected to be fierce. In a formal message to Warner Bros. Discovery’s legal counsel, Paramount officials warned that a Netflix takeover “likely would ‘never close’” given domestic and international scrutiny. As reported in the Wall Street Journal, the letter further asserted that combining Warner’s studio and streaming divisions with Netflix “will entrench and extend Netflix’s global dominance in a manner not allowed by domestic or foreign competition laws.”
The Paramount-Skydance proposal has been repeatedly retooled over the past several months, allowing Ellison’s team to remain a viable alternative as the industry braces for lengthy antitrust reviews and potential intervention from the incoming administration.
Shares in Netflix and Warner Bros. Discovery experienced significant volatility in early trading following the announcement, reflecting investor uncertainty over the odds of regulatory approval and the direction of content consolidation under a more aggressive enforcement environment.
Further signals from Washington are expected as agency officials, congressional leaders, and entertainment executives weigh the implications of the first major antitrust battle of the Trump administration’s return.
