The Trump administration said the proposed $72 billion deal Netflix get warner bros discoveryThere is “huge skepticism” about the film and streaming properties, a senior administration official told CNBC’s Eamon Javers on Friday morning.
Netflix announced Friday that it will acquire Warner Bros. HBO Max, a movie studio and streaming service; The deal requires regulatory approval.
“This deal is an antitrust nightmare,” said Massachusetts Sen. Elizabeth Warren.
“A merger between Netflix and Warner Bros. would create a media giant that controls nearly half of the streaming market, forcing Americans to pay more for subscriptions and giving them fewer choices in what and how they watch, potentially endangering American workers,” Warren said in a statement.
“Under Donald Trump, the antitrust review process has also become a breeding ground for political favoritism and corruption,” Warren said. “The Department of Justice must fairly and transparently enforce our nation’s antitrust laws. Warner Bros.’ contract review must not be used to invite influence or bribery.”
paramount skydance had made multiple bids for the entire WBD, rather than just a portion of the company’s assets.
CNBC previously reported that Paramount’s final bid was accepted Thursday night and was all cash at $30 per share.
comcast also made a bid for WBD’s film and streaming assets.
The New York Post reported Thursday that “Paramount Skydance chief David Ellison met with Trump administration officials and key lawmakers in Washington, D.C., on Wednesday to make the case for Warner Bros. Discovery’s possible selection of Netflix as a merger partner.”
Ellison’s billionaire father, Larry Ellison, is close to President Donald Trump.
On Thursday, the Wall Street Journal reported that Paramount warned in a letter to WBD’s lawyers that the sale to Netflix was likely “never to be completed” due to regulatory challenges in the U.S. and abroad.
Paramount’s lawyers said the acquisition of Warner’s streaming and studio assets would “consolidate and expand Netflix’s global dominance in matters not permitted by domestic or international competition law,” the newspaper reported.
Netflix’s acquisition of the WBD assets is expected to close following WBD’s previously planned spin-out of Discovery Global, subject to regulatory approval, and is currently expected to occur in the third quarter of 2026.
Discovery Global includes CNN, TNT Sports, and Discovery channels.
Netflix has agreed to pay $5.8 billion in reverse breakup fees if the deal is not approved, according to a filing with the Securities and Exchange Commission.
CNBC has reached out to Netflix, WBD, Paramount and Comcast for comment.
President Trump opposed the deal with the United States even before he took office in his first term in the White House. AT&To Buying Time Warner, saying “power is concentrated too much in too few hands.”
After he took office, the Justice Department filed a lawsuit in November 2017 to block the merger.
The Department of Justice lost the case, and the merger was completed in June 2018.
Before the 2024 presidential election, Trump opposed the then-proposed sale of U.S. Steel to the United States. Nippon Steel Japan. However, after re-entering the White House in January, President Trump signed an executive order approving the merger in June after both companies signed a national security agreement with the US government.
The deal gives the U.S. government a “golden stake” in the combined company, which Trump claims gives him “complete control.”
Experts said this share would give the government a greater say in corporate governance.
Correction: A senior administration official said the Trump administration views the deal with “deep skepticism.” Previous versions had incorrect official features.
Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC. With Comcast’s planned Versant spinoff, Versant will become CNBC’s new parent company.
