Trump says he ‘will be involved’ in US$82.7 billion Netflix move as this ‘could be a problem’
Netflix is wagering more than US$80bn to buy Warner Bros. will lock in its lead in global streaming – and regulators and the White House will decide if that bet pays off.
According to CNBC, Netflix agreed to buy Warner Bros. Discovery’s film studio and HBO Max for US$27.75 per WBD share, valuing the equity at about US$72bn and the enterprise at roughly US$82.7bn. The consideration mixes cash and stock.
Each Warner Bros. Discovery shareholder will receive US$23.25 in cash and US$4.50 in Netflix shares per WBD share.
Warner Bros. Discovery will still spin out Discovery Global, which holds its linear TV networks, including CNN and TNT.
The acquisition of the studio and streaming assets is expected to close 12 to 18 months from signing, after the networks’ separation now targeted for the third quarter of 2026, subject to regulatory and WBD shareholder approvals.
The deal fuses Netflix’s streaming scale with one of Hollywood’s deepest catalogues.
CNBC noted that Warner Bros.’ library includes “The Wizard of Oz,” the Harry Potter franchise and the DC universe, as well as HBO series such as “The Sopranos” and “Game of Thrones.”
Netflix last reported more than 300m global streaming subscribers at the end of 2024, while Warner Bros. Discovery had 128m subscribers as of September 30.
The risk‑management levers in the agreement are large.
According to CNBC, Netflix has committed to a US$5.8bn reverse break‑up fee if the deal fails, while Warner Bros. Discovery would pay a US$2.8bn break fee if it walks away for another merger.
Paramount’s rival bid reached US$30 per share, all cash, and included a proposed US$5bn break‑up fee if the deal did not secure regulatory approval after about 10 months, people familiar with the matter told CNBC.
Regulatory and political scrutiny now dominate the outlook.
Reuters reported that US President Donald Trump said he “will be involved” in the decision on whether the merger goes ahead, arguing the combined company would have “a big market share” that “could be a problem.”
He called Netflix “a great company” that has done “a phenomenal job,” but stressed that economists will have to assess the concentration risk.
Bloomberg reported that Netflix co‑CEO Ted Sarandos met Trump at the White House in mid‑November for more than an hour, where they discussed the Warner Bros. auction among other topics.
Trump said Warner Bros. should sell to the highest bidder. Sarandos argued that Netflix is not “any kind of all-powerful monopoly,” pointed to recent subscriber losses, and stressed that Netflix does not own broadcast or cable networks.
He said that buying Warner Bros. would make Netflix roughly the size of YouTube in the US.
Bloomberg also reported that Republican congressman Darrell Issa raised concerns that the transaction could create a monopoly and that the White House convened a meeting to discuss whether Netflix already needs regulation even without the deal.
Powerful Hollywood guilds are opposing the transaction, and Paramount executives and allies have been lobbying in Washington against it.
The auction process itself adds deal‑execution risk.
According to Bloomberg, the newly merged Paramount Skydance made three early bids for Warner Bros., raising its offer from US$19 to US$22 and then to US$23.50 per share, and argued that a combined group could better compete with Netflix, Amazon and Disney.
Warner Bros.’ board believed the business was worth US$30 per share, even though the stock traded around US$12 before takeover speculation.
Once Warner Bros. launched a formal strategic review and invited other suitors, Netflix moved from long‑shot to front‑runner.
Bloomberg said Netflix code‑named the effort “Ace,” signed non‑disclosure agreements and formed a deal team led by Chief Financial Officer Spencer Neumann and senior corporate development and legal executives.
The team concluded they could extract significant value from HBO and the Warner Bros. library by pushing it through Netflix’s technology and global base, while keeping theatrical releases and third‑party TV licensing.
Netflix’s initial bid of US$27 per share for the studio and streaming assets topped Paramount’s offer and shifted momentum, a person familiar with the process told CNBC.
Bloomberg reported that in binding bids submitted on December 1, Netflix again led the field, offered to raise more than US$50bn in debt to fund a largely cash bid and committed to the US$5.8bn reverse break fee.
Warner Bros. viewed Paramount’s reliance on Middle Eastern sovereign wealth funds as a financing complication that would invite a national‑security review.
According to CNBC, Warner Bros. ultimately accepted Netflix’s offer at US$27.75 per share for the studios and streaming operations, with Warner Bros. investors also set to receive shares in the spun‑off cable networks valued at US$3 to US$4 per share.
Bloomberg reported that Netflix targets at least US$2bn in cost savings, less than what Paramount or Comcast proposed, and that Warner Bros. CEO David Zaslav has told staff Netflix plans to keep most employees.
On the announcement call, Sarandos said, “Over the years, we have been known to be builders, not buyers,” and described the deal as a “rare opportunity,” according to CNBC.
Co‑CEO Greg Peters added that Netflix is “not expert at doing large-scale M&A,” but argued the company has “done a lot of things historically that we didn’t know how to do,” as per Bloomberg.
