President Donald Trump signaled a major shift in his administration’s approach to the media landscape on Wednesday, announcing he will not personally intervene in the blockbuster $82.7 billion merger between Netflix Inc. (NASDAQ:NFLX) and Warner Bros. Discovery Inc. (NASDAQ:WBD).
In an interview with NBC News anchor Tom Llamas, the President reversed his December stance, where he had suggested he would be “involved in that decision” due to concerns over market concentration. Instead, Trump stated he would defer to career regulators.
“I haven’t been involved,” Trump told Llamas from the White House. “I must say, I guess I’m considered to be a very strong president. I’ve been called by both sides… but I’ve decided I shouldn’t be involved. The Justice Department will handle it.”
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The deal, which would combine the world’s leading streamer with the historic Warner Bros. studio and HBO, has sparked a fierce corporate battle.
While WBD’s board has unanimously recommended Netflix’s all-cash offer of $27.75 per share, Paramount Skydance Corp. (NASDAQ:PSKY)—led by David Ellison—has pursued a hostile $108.7 billion takeover attempt.
Trump acknowledged the high-stakes friction between the two entertainment giants. “There’s a theory that one of the companies is too big and it shouldn’t be allowed to do it, and the other company is saying something else,” Trump noted.
“They’re beating the hell out of each other — and there’ll be a winner.”
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The President’s pivot comes just one day after Netflix co-CEO Ted Sarandos faced a grueling Senate Judiciary subcommittee hearing.
Lawmakers grilled Sarandos on everything from “woke” content to the potential for a streaming monopoly. Analysts estimate a combined Netflix-Warner entity could control over 30% of the U.S. streaming market.
The merger remains subject to a complex antitrust review by the DOJ’s Antitrust Division. If the current deal fails, Netflix faces a record $5.8 billion breakup fee, while a pivot to Paramount would cost WBD $2.8 billion.
