Netflix’s proposed $72 billion acquisition of Warner Bros has triggered several price target cuts from Wall Street analysts after U.S. President Donald Trump raised concerns about the combined company’s market share. His comments highlight the intense regulatory scrutiny the deal is expected to face.
The merger would unite the world’s largest streaming platform with HBO Max and one of Hollywood’s major studios. Critics — including lawmakers from both political parties and multiple industry unions — have warned that the deal could lead to job losses and potentially higher costs for consumers.
Speaking at the Kennedy Center on Sunday, Trump said the enlarged market share of the merged companies “could be a problem” and indicated that he intends to be involved in the review process. On Monday, White House economic adviser Kevin Hassett told CNBC that the Justice Department will evaluate the deal’s impact “for quite a while.”
Netflix has agreed to pay a termination fee of $5.8 billion if the transaction fails to secure regulatory approval, signaling strong confidence in its ability to pass review.
To address competition concerns, Netflix is expected to argue that the online video market includes platforms such as YouTube and TikTok, both of which have hundreds of millions of active users.
Rosenblatt analyst Barton Crockett noted that antitrust challenges could delay the deal for years and introduce meaningful uncertainty about its completion.
Hollywood unions have also expressed worries, warning that the merger could increase market concentration, reduce film output and ultimately raise prices for consumers.
Meanwhile, rival bidder Paramount Skydance has claimed that the process was biased, suggesting the possibility of a higher counteroffer or even a hostile takeover attempt. Analysts say the political backdrop may become more complicated after Warner Bros Discovery rejected Paramount Skydance — a company with ties to Trump — in favor of Netflix.
At least three brokerages have cut their price targets for Netflix following the news, with the consensus median now at $139, according to LSEG data.
