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The U.S. president expressed doubts about the $72 billion agreement between Netflix and Warner Bros., which could concentrate a significant portion of the global entertainment market.
The President of the United States, Donald Trump, warned this Sunday that the agreement between Netflix and Warner Bros. Discovery to merge their operations "could be a problem" due to the high level of market concentration it would create in the entertainment industry.
According to a report by the Associated Press, Trump made the statements while attending the Kennedy Center Honors gala in Washington, where he answered questions from the press about the deal that will unite two of the largest content producers and platforms in the world.
"There is a lot of market power at stake. There is no doubt about it. It could be a problem," said the leader, referring to the merger valued at 72 billion dollars, which would combine the catalog of Warner Bros., HBO, and DC Studios with the global streaming and production infrastructure of Netflix.
Trump indicated that he plans to get involved in the decision on whether the federal government will approve the operation, which still needs to go through scrutiny by antitrust regulators.
"Netflix is a great company, Ted (Sarandos) is a fantastic man. I have a lot of respect for him, but it’s a lot of power, so we’ll see what happens,” he stated, referring to the company’s CEO, with whom he recently met at the White House.
If approved, the merger would create one of the largest corporations in global entertainment, combining iconic franchises such as Harry Potter, Friends, Game of Thrones, and The Dark Knight under the domain of the most powerful streaming platform on the planet.
The official insisted that the size and influence of the resulting conglomerate could impact competition and market freedom.
Her stance marks a difference from other governments that in the past allowed massive mergers within the U.S. media industry.
The agreement between Netflix and Warner Bros. Discover has generated divided opinions among economists, media analysts, and legislators, who fear an unprecedented concentration scenario in global digital entertainment.
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