The president of the United States, Donald Trump, has indicated that the acquisition of Warner Bros by Netflix could encounter obstacles from competition authorities, due to the high position that the resulting group would achieve in the streaming market.
In statements made this Sunday and reported by Bloomberg, Trump noted that the operation “has to go through a process” and that we will see “what happens,” although he insisted that it is “a large market share” and that “it could be a problem.”
The examination of the operation will fall to the US Department of Justice, which could block it if it considers that the new company would exceed a 30% share in the video on demand business.
Netflix has “a very large market share, and when they have Warner Brothers that share will increase a lot,” stressed Trump, who has also advanced his intention to get personally involved in the decision process regarding the operation.
The agreement, announced last Friday, contemplates the purchase of Warner Bros by Netflix for 82,700 million dollars (20,918 million euros) and values the company’s capital, excluding debt, at 72,000 million dollars (61,820 million euros). The transaction covers the film and television studios, as well as the HBO Max and HBO platforms.
The operation is expected to be completed within a horizon of between 12 and 18 months, once the previously announced spin-off of Discovery Global into a new listed company has been completed, the completion of which is estimated for the third quarter of 2026.
The acquisition garnered unanimous support from the boards of directors of Netflix and WBD. In addition to depending on the completion of the separation of Discovery Global, the definitive closing is conditional on the relevant regulatory authorizations, the approval of WBD shareholders and compliance with other usual requirements in this type of transaction.
Netflix is confident that the integration will generate cost synergies of at least between 2,000 and 3,000 million dollars (1,715 and 2,570 million euros) annually from the third year, and expects that the operation will increase earnings per share from the second year.
According to Netflix, the combination of both companies will bring more options, more opportunities and more value to the end user, underlining that the HBO and HBO Max offer is complementary for consumers. Therefore, the company intends to preserve the current activities of Warner Bros., including theatrical film releases.
Likewise, the platform maintains that, with the addition of the Warner Bros. film and television catalogs and the programming of HBO and HBO Max, Netflix will be able to better adjust its commercial plans for users, expanding viewing possibilities and facilitating access to a broader catalog of content.
