Trump Says Netflix’s $82.7B Warner Bros Deal ‘A Problem’ As 15M Face Forced Migration

Netflix’s bid to buy Warner Bros. Streaming & Studios for $82.7 billion has become a defining test of power in modern entertainment, pitting a dominant digital platform against a weakening cable-based legacy while regulators, rivals, and viewers assess how much consolidation the industry can bear.

Streaming Supremacy on the Line

On December 5, 2025, Netflix said it had entered exclusive negotiations to acquire Warner Bros. Streaming & Studios in a deal valued at $82.7 billion, including about $72 billion in equity. The transaction would fold HBO Max and the Warner Bros. film studio into Netflix’s global operation, creating the largest takeover in streaming history and marking the first time a pure streaming company moves to absorb a traditional Hollywood studio.

For Netflix, the acquisition would significantly expand its library of scripted series, films, and premium dramas while reinforcing its position at the center of on‑demand viewing. For Warner Bros. Discovery, the move caps years of pressure as audiences abandoned cable bundles and competitors poured billions into direct‑to‑consumer platforms. The deal now serves as a watershed moment in the shift from linear channels to streaming services as the primary way audiences access entertainment.

Cable Under Strain and Sports in Flux

The proposed merger lands amid steep challenges for the cable ecosystem that once anchored Warner’s business. As viewers cut the cord, advertising declines and affiliate fees have come under strain. The financial hit intensified when the NBA decided to move its domestic broadcast package away from TNT, a flagship Warner Bros. Discovery cable network, to NBC, Amazon, and Disney in a deal reported at around $76 billion. Losing those rights weakened one of cable’s most valuable live sports properties and further eroded the appeal of traditional bundles.

Warner Bros. Discovery has been reworking its portfolio in response. Its plan calls for separating out cable and non‑streaming assets into a new entity, Discovery Global, which would house brands such as CNN, HGTV, and TBS. Discovery Global intends to lean heavily on sports, including rights to Major League Baseball and the Olympics, and aims to list as a separate public company by the third quarter of 2026. Whether a sports‑centric strategy can offset the broader decline of linear television remains uncertain as audiences increasingly migrate to on‑demand platforms and fragmented digital sports packages.

Deal Mechanics, Timetable, and Synergy Push

Under the proposed structure, Netflix would acquire HBO Max’s streaming business and Warner Bros.’s film and television production operations while Warner Bros. Discovery executes the spin‑off of its cable networks into Discovery Global. Netflix executives, led by co‑CEOs Ted Sarandos and Greg Peters, have described the combination as a major strategic step, projecting between $2 billion and $3 billion in annual cost savings by the third year after completion. Those savings are expected to come from consolidating overlapping technology, marketing, and production operations and from using Warner’s studios to feed a larger slate of global originals under the Netflix brand.

The companies estimate the regulatory review and closing process could take 12 to 18 months, pushing a potential completion date into 2027. A $5.8 billion termination fee has reportedly been built into the agreement, a point of frustration for Warner Bros. Discovery CEO David Zaslav, who had been preparing the separation of cable assets well before negotiations with Netflix became public. The equity value of roughly $72 billion makes the proposed takeover one of the largest media and entertainment deals on record and the largest ever focused on streaming.

Consumers and Competitors React

If regulators sign off, Warner Bros. Discovery’s 128 million global streaming subscribers would gradually fold into Netflix’s user base. Analysts estimate that as many as 15 million U.S. customers—including over 10 million dual subscribers—could be directly affected by account migrations, packaging changes, or pricing shifts. Key questions for households include whether HBO-branded series and films will remain easily accessible within Netflix, how pricing tiers might evolve, and whether existing HBO Max promotions through cable and wireless partners will continue.

Rivals are not standing still. Paramount has reportedly floated an all‑cash proposal valued at $108.4 billion that would compete with Netflix’s offer for Warner’s prized entertainment assets, underscoring how central premium libraries have become in the streaming race. NBC’s expanded ties with the NBA and Disney’s participation in the new basketball rights package further illustrate how legacy conglomerates are repositioning around both live sports and streaming. Each move narrows the field of independent players and raises the stakes for studios and technology platforms that lack global scale.

Political and Regulatory Obstacles

The scale and timing of the Netflix–Warner deal have triggered immediate scrutiny in Washington. President Donald Trump has publicly warned that the combination could create a monopoly‑like presence in streaming and signaled that the agreement may pose an antitrust “problem” following a meeting with Sarandos. Lawmakers in Congress are divided, with some expressing concerns that further consolidation among large media companies could reduce competition, limit consumer choice, and put upward pressure on subscription prices.

Both the Department of Justice and the Federal Trade Commission are reviewing the transaction as a major instance of market concentration in entertainment and digital distribution. Regulators are expected to examine not only the combined share of scripted and premium video on demand but also Netflix’s strengthened bargaining power over talent, production partners, and international distribution. The approval process could lead to conditions on licensing, data practices, or bundling, or in an extreme case, result in a lawsuit to block the agreement.

A Turning Point for Hollywood and Streaming’s Future

If completed, the merger would symbolize a decisive shift in power away from traditional studios and cable channels toward large, global streaming aggregators. For Hollywood, it would mean one of its oldest film studios operating inside a technology‑driven company whose primary measure of success is subscription growth and viewing time rather than box office alone. Production decisions, release strategies, and international rollouts could be reoriented around Netflix’s algorithms and data‑driven commissioning.

For cable, the transaction highlights a shrinking role in shaping popular culture, even as Discovery Global seeks to anchor itself with news and live sports. For viewers, the outcome will influence how many services they need to access marquee shows and events and how much those services cost. As regulators weigh antitrust questions, competitors mount counteroffers, and Warner reshapes its remaining assets, the coming years will determine whether Netflix consolidates its position as the dominant entertainment platform or whether political and market forces redraw the map of streaming once again.

Sources:
Variety: “Netflix to Acquire Warner Bros. in $82.7 Billion Deal” (December 5, 2025)
Fortune: “Trump warns Netflix-Warner deal may pose antitrust ‘problem’” (December 6, 2025)
Morningstar: “What does Netflix’s offer to buy HBO Max mean for you?” (December 6, 2025)
Forbes: “NBA Ending Deal With TNT And Shifting Games To NBC And Amazon” (July 24, 2024)