Netflix co-CEO Ted Sarandos sounded predictably optimistic when he spoke to analysts on Friday about the company’s future regulatory direction. A deal to acquire Warner Bros. Studios, HBO, and HBO Max for $82.7 billion.
“We are very confident in the regulatory process,” the executive said, noting that the timeline for completion of the transaction, pending regulatory and WBD board approvals, is 12 to 18 months. “This deal supports consumers, innovation, workers, creators and growth (…) These two businesses are complementary and beloved businesses.”
WBD CEO David Zaslav echoed similar sentiments in a memo to staff, saying, “This decision reflects the realities of an industry undergoing generational change,” adding that the acquisition “reflects complementary strengths, increasing choice and value for consumers, strengthening the entertainment industry, increasing opportunities for creative talent, and creating long-term value for our shareholders.”
Talking about job creation and fair pricing before regulators scrutinize the deal is standard for mergers and acquisitions, but these comments still do not allay doubts that proposals will be subject to scrutiny in the United States as well as Europe.
No word from Trump…so far.
Although Donald Trump had not commented publicly or on the Truth Social platform at the time of writing (he was busy collecting the inaugural FIFA Peace Prize at the 2026 World Cup draw in Washington, DC), the US president has shown that he is comfortable exerting his influence on media activities that come to his attention.
CNBC reported that a senior Trump administration official said the government views the proposed deal with “deep skepticism.” Democratic senator Elizabeth Warren was very clear in her assessment, calling the proposed deal an “anti-monopoly nightmare” and adding: “Netflix and Warner Bros. would create one giant media behemoth that would control nearly half of the streaming market, threatening to force Americans to pay higher subscription prices and have fewer choices about what and how they watch, while putting American workers at risk.”
The Justice Department oversees antitrust issues, but it remains to be seen what action the department will take. The Federal Communications Commission, which evaluates whether deals are in the public interest, is chaired by Brandon Carr, who appeared to be aligned with President Trump during his second administration. In September, Carr hinted that ABC would face serious consequences if it did not go off the air. Jimmy Kimmel Live!host Trump has repeatedly attacked him personally.
The proposed transaction would not involve a transfer of ownership of the television licenses, so the FCC may not be involved. However, the impact on the streaming market could come under intense scrutiny from regulators. Netflix is by far the market leader with over 300 million subscribers worldwide, and HBO Max currently has nearly 130 million subscribers. Netflix executives weren’t specific on Friday’s investor call, but a combined business, or two businesses under the control of one company, could well set off alarm bells.
“A great effort”
“It’s going to take a lot of effort to get Netflix and Warner Bros. Discovery over the line,” said Corey Martin, head of Granderson Des Rocher’s entertainment finance practice. screen.
“Netflix was already a huge company,” Martin added. “Any regulator could easily conclude that Netflix and Warner Bros. Discovery’s streaming operations create a streaming monopoly.”
Martin also noted that the proposed deal could end up on the desks of state attorneys general in states such as California and Georgia if dominant companies drive up production costs.
On a conference call with investors, Sarandos noted that Netflix is California’s largest producer of original content, and said, “[The proposed deal]allows us to invest in productions across the HBO brand, the Warner Bros. brand and the Warner Bros. TV studio. This is a healthy growth business, and it will help us grow another bus and open up an audience reach that these creators never had before.”
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