Trump to Weigh in on $72B Netflix-Warner Bros Merger Decision
Written by Emily J. Thompson, Senior Investment Analyst
Source: Newsfilter
Updated: 1 hour ago0mins
- Merger Oversight: Trump stated he would have a say in the decision regarding Netflix's $72 billion acquisition of Warner Bros, highlighting concerns about potential market share concentration in the entertainment industry, which could lead to regulatory scrutiny.
- Market Impact: This deal would grant Netflix control over significant Hollywood assets, and while Trump did not express a clear stance for or against the merger, his comments on market power concentration could influence the approval process.
- Industry Outlook: Post-merger, Netflix is poised to strengthen its leadership in the streaming market, potentially exerting pressure on competitors and altering the competitive landscape of the industry.
- Economic Analysis: Trump's remarks about needing economists to assess the merger's potential issues reflect a cautious governmental approach to large corporate mergers, which may result in a stricter regulatory environment.
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Analyst Views on NFLX
Wall Street analysts forecast NFLX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NFLX is 139.13 USD with a low forecast of 95.00 USD and a high forecast of 160.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
36 Analyst Rating
28 Buy
7 Hold
1 Sell
Strong Buy
Current: 103.220
Low
95.00
Averages
139.13
High
160.00
Current: 103.220
Low
95.00
Averages
139.13
High
160.00
Huber Research
Craig Huber
Neutral -> Underweight
downgrade
$92
2025-12-05
New
Reason
Huber Research
Craig Huber
Price Target
$92
2025-12-05
New
downgrade
Neutral -> Underweight
Reason
Huber Research analyst Craig Huber downgraded Netflix (NFLX) to Underweight from Neutral with a $92 price target after the company announced an agreement to buy the studio and streaming assets of Warner Bros. Discovery (WBD)
Huber Research
Overweight -> Underweight
downgrade
$92
2025-12-05
New
Reason
Huber Research
Price Target
$92
2025-12-05
New
downgrade
Overweight -> Underweight
Reason
Huber Research downgraded Netflix (NFLX) to Underweight from Overweight with a $92 price target after the company announced an agreement to buy the studio and streaming assets of Warner Bros. Discovery (WBD).
Huber Research
Huber Research
Overweight -> Underweight
downgrade
$92
2025-12-05
New
Reason
Huber Research
Huber Research
Price Target
$92
2025-12-05
New
downgrade
Overweight -> Underweight
Reason
Huber Research downgraded Netflix (NFLX) to Underweight from Overweight with a price target of $92, down from $137.50, following the company's agreement to buy the film and television studios, HBO, and HBO Max streaming assets from Warner Bros. Discovery (WBD). The firm views this as "a very risky transaction," particularly given its announced size of $82.7B enterprise value and fact that it marks "a significant change in strategy at Netflix" that the firm does not think is needed. The transaction is expected to take 12-18 months to close and the firm does not think Netflix's stock will trade well through that period or likely for a while after closing, if the deal closes at all, the analyst tells investors.
Barrington
Patrick Sholl
Outperform -> Market Perform
downgrade
2025-12-05
New
Reason
Barrington
Patrick Sholl
Price Target
2025-12-05
New
downgrade
Outperform -> Market Perform
Reason
Barrington analyst Patrick Sholl downgraded Warner Bros. Discovery (WBD) to Market Perform from Outperform after the company announced a deal for its studios and streaming operations to be acquired by Netflix (NFLX). While there is uncertainty regarding the regulatory environment and the potential to close the transaction and the stock is currently trading below the transaction price, the firm sees the deal "providing a solid valuation" for the studio and streaming assets, the analyst tells investors.
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About NFLX
Netflix, Inc. is a provider of entertainment services. The Company acquires, licenses and produces content, including original programming. It provides paid memberships in over 190 countries offering television (TV) series, films and games across a variety of genres and languages. It allows members to play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time. The Company offers members the ability to receive streaming content through a host of Internet-connected devices, including TVs, digital video players, TV set-top boxes and mobile devices. It is engaged in scaling its streaming service, such as introducing games and advertising on its service, as well as offering live programming. It is developing technology and utilizing third-party cloud computing, technology and other services. The Company is also engaged in scaling its own studio operations to produce original content.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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