US, Dec 09 : Hollywood’s biggest merger drama of the decade is turning into a high-stakes showdown involving Netflix, Warner Bros Discovery (WBD), Paramount, and even the US government. The $83 billion deal for Netflix to acquire Warner Bros’ film studio, HBO, and streaming platform HBO Max is now facing political, regulatory, and corporate hurdles.
Trump Raises Red Flags
At a public appearance at the Kennedy Center, President Donald Trump expressed concerns over the merger, warning that Netflix already holds a “very big market share” and acquiring Warner Bros could “be a problem.” Trump revealed that Netflix CEO Ted Sarandos had met him at the Oval Office but made no guarantees regarding the deal. A senior administration official confirmed the White House is viewing the acquisition with “heavy skepticism.”
Paramount Enters the Race
Just as Netflix braced for regulatory scrutiny, Paramount Skydance launched a hostile takeover bid, offering $108.4 billion including debt—far higher than Netflix’s $82.7 billion offer. Paramount’s CEO David Ellison argued that their bid avoids regulatory complications, is faster, and provides greater certainty. The bid is backed by Jared Kushner’s Affinity Partners and investment funds from Saudi Arabia, Abu Dhabi, UAE, and Qatar, all without seeking governance control to sidestep CFIUS review.
Stakeholders and Regulators Watch Closely
The deal has drawn opposition from multiple quarters. Senator Elizabeth Warren criticized the merger as an “anti-monopoly nightmare,” while the Writers Guild of America warned it could lead to job cuts and lower wages. Global regulators, including those in Europe, are expected to examine the deal closely. A planned Discovery Global spinoff, including CNN, TNT Sports, and Discovery Channel, must occur before the Netflix acquisition can close, delaying completion potentially until Q3 2026.
Hollywood Power Play Intensifies
The Netflix-Warner Bros deal has transformed from a corporate acquisition into a political and strategic battle, involving investors, lawmakers, labor unions, and regulators. While Netflix aims to reshape the entertainment industry, Paramount and competitors like Comcast are fighting to block the merger. Meanwhile, Wall Street, Silicon Valley, and Hollywood talent are watching closely, as the outcome could redefine the future of media power.
Trump’s final word: “There’s no question about it. It could be a problem.”