Warner Bros. (WBD) Stock: Trump Signals Antitrust Concerns Over Netflix Acquisition

TLDR

• President Trump confirmed he met with Netflix co-CEO Ted Sarandos to discuss the $82.7 billion Warner Bros. acquisition and signaled potential antitrust concerns
• Trump stated Netflix and Warner Bros.’ combined streaming market share “could be a problem” and confirmed he will be involved in the regulatory decision
• Warner Bros. Discovery shares fell 1.7% in premarket trading following Trump’s comments, while Netflix shares rose 1.07%
• The deal faces pushback from lawmakers across both parties and Hollywood unions who are demanding antitrust oversight
• Netflix agreed to pay a $5.8 billion termination fee if the deal fails to move forward or gets blocked by regulators

Warner Bros. Discovery shares dropped in premarket trading Monday after President Trump raised red flags about the company’s pending sale to Netflix.

The president’s remarks sent WBD shares down 1.7% to $25.64 in early Monday trading. Netflix stock moved in the opposite direction, climbing 1.07% to $101.33.

Warner Bros. Discovery, Inc., WBD

Deal Details and Market Reaction

Netflix announced Friday it reached an agreement to acquire Warner Bros. for $82.7 billion. The deal includes the company’s film and television studios plus HBO Max streaming service.

Under the terms, Warner Bros. Discovery will spin off its TV network business into a separate public company called Discovery Global. Netflix’s cash-and-stock offer values the studio and streaming business at $27.75 per share.

Each WBD shareholder would receive $23.25 in cash per share plus $4.50 worth of Netflix stock. The deal emerged after a weeks-long bidding war that included Paramount Skydance and Comcast.

Netflix has agreed to pay a $5.8 billion termination fee if the deal fails or regulators block it. That’s the price tag on regulatory risk.

Growing Opposition

The acquisition faces immediate resistance from Washington and Hollywood. Lawmakers from both parties are demanding antitrust oversight.

The WGA warned the deal would eliminate jobs, push down wages, raise prices for consumers, and reduce content diversity. Hollywood unions are taking a firm stance against consolidation.

What Netflix Says

The Netflix co-CEO called the deal “pro-consumer, pro-innovation, pro-worker, it’s pro-creator, it’s pro-growth.” He said Netflix plans to work closely with government officials and regulators.

Sarandos maintained the company expects to receive all necessary approvals. That confidence now faces a test with Trump’s involvement.

Paramount Skydance and Comcast both submitted bids before Netflix’s offer was accepted. Sources told Reuters that Paramount’s bid had funding concerns while Comcast’s offer didn’t provide as many early benefits to WBD shareholders.

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