Catenaa, Monday, December 08, 2025- Netflix deal of $72 billion to acquire Warner Bros. led to several price target cuts by Wall Street analysts, as President Trump warned of market-share concerns.
The deal that combines the world’s largest streaming service with HBO Max and a major Hollywood studio has also drawn criticism from bipartisan lawmakers and unions on concerns it could lead to job cuts and higher prices for consumers.
Trump warned on Sunday, while speaking at the Kennedy Center, that the combined group’s enlarged market share “could be a problem” and that he will be involved in the decision.
Netflix has agreed to a $5.8 billion termination fee if it cannot obtain regulatory approval, in a sign of confidence of a green light.
To ease concerns of market concentration, it is likely to argue that the market for online video also includes YouTube and TikTok – two of the most popular platforms with hundreds of millions of users.
Hollywood unions have voiced concerns about increased market concentration, reduced film output, and the potential for higher consumer costs.
Rival bidder Paramount Skydance has said the deal process was biased, raising the chances of a higher bid or a hostile takeover.
At least three brokerages cut their price targets for Netflix, witthe h consensus median price target now at $139, according to data compiled by LSEG.
Netflix stock was down by over 6% last week, despite the deal, while Warner Bros stock was up by over 8% in the same week.
