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(NEW YORK) — If you’re looking for a new set of wheels next year, the choices can be overwhelming.

From 3-row SUVs to wagons and futuristic electric vehicles, buyers can select from a wide range of powertrains, prices and body styles.

Which models are already generating excitement in the industry? ABC News spoke to several insiders to get their take on the hottest vehicles headed to showrooms.

Mercedes-Benz CLA and GLB

The German automaker has a busy 2026 schedule planned with the launches of several newly updated models, including the CLA sedan, GLB SUV and the flagship S-Class.

Mercedes’ designers reimagined the interior of the GLB, which can be configured for five or seven passengers. The latest model offers greater comfort: headroom has increased as well as legroom for second-row passengers. A new panoramic roof is standard and owners can opt for a “floating” MBUX Superscreen that extends across the entire dashboard.

Buyers have three powertrains from which to choose. There’s a new 1.5-liter, inline-4 gasoline hybrid, and two electrics: the 250+ (268 horsepower) and 350 4MATIC (349 hp). The GLB can charge up to 260 kilometers (162 miles) of range in 10 minutes, according to Mercedes, and the hybrid version drives in electric-only mode at city speeds.

The latest CLA, available as an electric sedan ($47,250 for the 250+ and $49,800 for the 350 4MATIC) and hybrid, may be even more important for the luxury automaker. The entry-level car packs a ton of tech inside, making it “among the most intelligent vehicles from Mercedes-Benz to date,” according to the automaker.

The same four-cylinder turbocharged engine in the GLB powers the CLA220 hybrid, which is mated to an eight-speed dual-clutch transmission. A large, fixed panoramic glass roof in the CLA helps make the interior feel larger and more spacious. The CLA hybrid will be easy to spot at night: its radiator grille is adorned with the Mercedes‑Benz star pattern in chrome.

The electric CLA can travel 374 miles on a charge, according to Mercedes. Underneath the shell is an 800-volt electrical architecture, which allows the 48-volt lithium-ion battery to recoup roughly 200 miles in 10 minutes. DC fast charging up to 320 kilowatts (kW) is possible, too.

“It’s our vision for an EV to charge like fuel. We’re pushing the limits of what is possible with the CLA. Range anxiety will go away,” according to Markus Schäfer, a Mercedes board member and its chief technology officer.

The marque’s suite of advanced driver assistance systems is also available in the CLA models. Pricing for the GLB and CLA hybrid will be announced in 2026.

Kia K4 Hatchback

The K4 Hatchback, a stylish wagon that debuted in April, starts at $24,890 and will be available for sale in early 2026.

“I am so excited for it,” Robby DeGraff, manager of product and consumer insights at AutoPacific, told ABC News. “Hatchbacks might be making a comeback. It has a humongous cargo area and will be fun to drive. In terms of value, this should be a winner.”

A 2.0-liter engine produces 147 horsepower and 132 lb-ft of torque. For a sportier ride, consumers can choose the GT-Line Turbo model ($28,790); the 1.6-liter, turbocharged engine makes 190 hp and 195 lb-ft of torque.

The K4 Hatchback is also a new design for the Korean automaker and comes equipped with features like a heated steering wheel, Harman Kardon audio system and Digital Key technology that allows an owner’s smartphone to function as virtual key.

Degraff said Kia’s latest iteration of the Telluride SUV, now available with a hybrid powertrain, should also be popular with consumers.

“A hybrid Telluride is long overdue — we will see a big take rate for the hybrid version,” he said. “Losing the V6 [engine] will be a bummer for some people … there are shoppers out there that want a V6 in their 3-row SUVs. But the Telluride will be hit no matter what.”

According to Kia, the turbo hybrid powertrain adds more power and acceleration than the previous model: a combined 329 hp and 339 lb-ft of torque. The driving range is an estimated 600 miles. Kia’s flagship SUV, including the X-Line and X-Pro variants, go on sale in Q1 of 2026 and will be assembled at Kia’s plant in Georgia.

“The Telluride changed what Kia is,” according to Tony Quiroga, editor-in-chief of Car and Driver. “There was a ton of value in the first generation. The new Telluride looks more expensive than it will be and probably start around $40,000.”

“This version gives off a Range Rover vibe,” Quiroga added.

Subaru Outback

Subaru packed a ton of new tech in the latest Outback, including a 12.1-inch high-resolution infotainment screen and advanced driver assistance features. Drivers can now enable a Hands-Free Assist function that works at speeds up to 85 mph on highways.

The automaker is calling the 2026 Outback “the most connected and capable Subaru yet” with the “biggest styling updates in the model’s history.”

DeGraff said the SUV’s updated styling – a new front fascia, larger grille and boxier profile – could be “make or break” for consumers, but the amenities are a “good value” and Subaru still offers “the best all-wheel drive system in the entire industry.”

For Quiroga, the design changes make the Outback look more like a traditional SUV versus a lifted wagon.

“The latest Outback has the refinement and practicality of a wagon but is still very car-like. I see that as a plus,” he said.

The seventh-generation Outback starts at $34,995 for the Premium trim.

Chevy Bolt

The polarizing Chevy Bolt, one of the few affordable EVs to be sold in the U.S, will make its return as a 2027 model, though production will be limited.

The Bolt had both its fans and detractors; the unpretentious crossover won over motorists for its range and simplicity at an appealing price.

The latest trims – the Bolt RS and LT – will start under $30,000 and charge 2.5x faster than the previous model. Owners can expect to get 255 miles of range on a fully charged battery. The Bolt also is the first Chevy to be fitted with a NACS [North American Charging Standard] charging port. Deliveries begin in the first half of 2025.

“We really like the old Bolt, it had a ton of practicality,” said Quiroga. “The upcoming Bolt has a bit more range and a newer battery.”

Added DeGraff: “The 2027 Bolt is a clone of the outgoing one but it has more modern tech. It has all the safety features and Super Cruise. For budget shoppers who want to go electric, the Bolt is a home-run product.”

BMW iX3

The all-new iX3, BMW’s first series-production Neue Klasse model, goes on sale in summer of 2026 and will be a “hugely important vehicle” for the marque, according to Alistair Weaver, editor-in-chief of Edmunds.

The compact sport utility vehicle’s ($60,000) two-box design underwent a dramatic metamorphosis, with the latest iteration taller, longer, wider and more commanding. It also has a range of up to 400 miles, according to BMW. Plus, the company’s 800V architecture could be a game-changer for the industry: BWM said iX3 drivers can add nearly 175 miles of range in less than 10 minutes (it has a maximum charging rate of 400 kW). The vehicle’s dual-motor all-wheel drive powertrain makes 463 hp and 476 lb-ft of torque.

“Most EV owners are happy with 300 miles, but this will do 400, and it can recharge almost twice as fast as a Tesla,” Jared Rosenholtz, editor at large for CarBuzz, told ABC News. “Not only is range anxiety gone, but so is motion sickness. You can not feel the regen braking working in the iX3. It’s the smoothest braking I’ve ever felt in my decade of reviewing cars. All of this will be available for just over $60,000, not $100,000.”

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(NEW YORK) — The stock market surged to record highs in 2025, hurtling past tariffs, a government shutdown and fears of a bubble in artificial intelligence.

The S&P 500 — the index that most people’s 401(k)s track — climbed about 17% this year, as of Dec. 23. That performance marks a slight slowdown from two consecutive years of more than 20% growth, but the latest uptick extends a run of gangbusters returns.

The yearslong bull market presents a stark choice for investors as the calendar turns to 2026: Flee from ever-higher stock prices or trust that the good times will continue to roll.

Earlier this month, investment bank Morgan Stanley summed up its market forecast with a single question: “Can the bull market endure?”

Analysts attributed the rise of share prices this year to overlapping trends: Resilient corporate earnings, a series of interest-rate cuts meant to boost hiring and near-inexhaustible enthusiasm for artificial intelligence.

Tariffs, which threatened to derail markets in the spring, eased into an afterthought over the latter half of the year.

A day after tariffs were announced on April 2, major stock indexes shed about $3.1 trillion in value. The selloff amounted to the biggest one-day decline in markets since the onset of the COVID-19 pandemic. Days later, a major swathe of the tariffs were suspended, sending the market to one of its largest ever single-day increases.

“While tariffs remain a source of uncertainty, markets are pricing in limited disruption,” JPMorgan Wealth Management said in an investor note last month.

Even as markets proved resilient, the gains this year remained concentrated in a handful of tech giants, known as the magnificent seven: Alphabet, Amazon, Apple, Meta, Microsoft, Tesla and Nvidia. In September, worries over AI threw cold water on those stocks, causing their prices to waver.

In November, blockbuster earnings from chip giant Nvidia helped rebuke AI fears and shake markets out of the doldrums. Nvidia recorded $57 billion in sales over a three-month span, the company said, setting a quarterly sales record and demonstrating near-bottomless demand for the semiconductors at the heart of AI.

Nvidia, the world’s largest company by market capitalization, soared 40% this year, as of Dec. 23.

Still, some analysts have continued to voice concern about the market’s dependence on AI, as tech firms face increased pressure to turn massive capital investment into profits.

“Equity markets may remain exuberant but face rising risks,” investment giant Vanguard said in December, citing AI as a threat to growth.

Other risks abound, some analysts said. Key measures of the U.S. economy have shown mixed results, making the path forward uncertain. Hiring slowed sharply this year, while inflation remained about a percentage point higher than the Fed’s 2% goal. Economic growth withstood headwinds from tariffs and elevated interest rates, but consumer sentiment sputtered.

Ultimately, Vanguard said its baseline expectation remains optimistic, forecasting overall stock returns next year as high as 8%.

Some analysts predicted even better performance in 2026. JPMorgan Wealth Management predicted stock gains next year between 13% and 15%. BNY Wealth estimated the S&P 500 would end 2026 as high as $7,600, which would amount to about a 10% jump from where the index stood on Dec. 23. Morgan Stanley also forecasted an increase in 2026 of 10%.

In response to its own question about whether the bull market could endure, Morgan Stanley answered with little doubt, saying the odds of a recession next year are “extraordinarily low” and the upswing in stocks “still has room to run.”

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(NEW YORK) — Silver prices on Monday suffered their largest single-day drop in almost five years, before rebounding nearly 8% in midday trading on Tuesday. Some other precious metals, including gold, rode a similar rollercoaster.

The turbulent stretch comes near the end of a banner year for gold and silver, which rose far faster than even the robust stock market. Gold has climbed 66% in 2025, while silver has soared a staggering 160%. The S&P 500, by comparison, has jumped 17% over that span.

Bumpiness in recent days owes in part to the meteoric rise over prior months, some analysts told ABC News, saying investors likely cashed in on those gains by selling off their holdings.

The downturn in prices at the outset of this week followed an adjustment by exchange operator CME Group, which increased the amount futures traders must pony up in order to participate in the topsy-turvy markets for precious metals.

The uptick in the amount of such payments — known as margins — likely deterred some investors and pushed prices lower, analysts added. Prices boomeranged higher on Tuesday, suggesting some investors viewed the dip as a buying opportunity.

“These were some of the worst one-day losses in the history of trading in both gold and silver going back 50 years,” Jim Wyckoff, senior market analyst at Kitco Metals, told ABC News.

“Extreme price volatility in commodity markets is a signal of the final stages of a mature bull market run,” Wyckoff added.

Over the course of the year, heightened geopolitical and economic uncertainty boosted demand for gold and silver, which typically display a degree of independence from movements in stock prices. Volatility in bond markets and a devaluation of the U.S. dollar, meanwhile, unsettled alternative assets typically viewed as safe-haven investments.

The flight to gold in moments of market turbulence draws on decades of evidence, according to an analysis co-authored in 2025 by Campbell Harvey, a professor at Duke’s Fuqua School of Business who studies commodity prices. The price of gold moved higher during eight of the last 11 major stock market selloffs stretching back to the late 1980s, researchers found.

“Gold is a safe-haven asset because people believe it’s a safe-haven asset,” Paolo Pasquariello, professor of finance at the University of Michigan, told ABC News. “It’s a kind of self-fulfilling prophecy.”

However, gold and silver prices carry volatility of their own, especially when buyers enter the market at a high point, risking losses instead of providing a security blanket, analysts said.

The rollercoaster this week could foretell volatility for gold and silver prices in 2026, Pasquariello said, pointing especially to a murky path forward for interest rates.

The Fed cut interest rates three consecutive times over the latter part of this year. Its benchmark rate now stands between 3.5% and 3.75%. That figure marks a significant drop from a recent peak attained in 2023, but borrowing costs remain well above a 0% rate established at the outset of the COVID-19 pandemic.

Policymakers at the central bank appear divided over where interest rates should go next. Three of the 12 voting members on the Federal Open Market Committee, or FOMC — a policymaking body at the Fed — dissented from the most recent quarter-point rate cut, the highest number of dissenters since 2019.

President Donald Trump, who has repeatedly called for lower interest rates, is set to appoint a Fed chair next year. The leadership perch offers a large public platform, but it carries a single vote, like any other member of the FOMC.

Lower interest rates establish financial conditions favorable for gold and silver, since meager interest rates reduce the comparative benefit of interest-bearing investments such as savings accounts. A rate reduction also slashes the cost of borrowing for traders who speculate in precious metals, potentially juicing investment further.

“It looks like there is a significant split at the Federal Reserve about whether to cut interest rates or not,” Pasquariello said. “Markets like gold and silver – which in my mind have sensitivity to this rate uncertainty – will experience volatility the most.”

“People buy gold and silver for a safe haven,” Pasquariello added. “I don’t see that happening in 2026.”

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(NEW YORK) — Nearly 20 U.S. states are set to raise their minimum wage in 2026, boosting pay for millions of workers spanning from Arizona to New Jersey.

A mix of Republican- and Democrat-controlled states will raise their wage floors on Jan. 1 in keeping with inflation-adjusted increases or as part of scheduled hikes that take effect at the beginning of each calendar year.

The pay increases will affect about 8.3 million workers, who will gain a combined $5 billion over the course of 2026, according to the left-leaning Economic Policy Institute, or EPI.

Beginning next year, the number of workers living in a state that guarantees a $15 minimum wage will exceed the number living in a state that offers the federal wage floor of $7.25 per hour, the EPI found.

After the wave of wage hikes, Washington will become the state with the highest minimum wage, offering workers $17.13 per hour.

Workers in New York will enjoy the second-highest wage floor, as the state implements a minimum hourly wage of $17 for workers in New York City, Long Island and Westchester. Outside those areas, workers in New York will receive at least $16 per hour.

Overall, the 19 states set to raise their minimum wage on Thursday include: Arizona, California, Colorado, Connecticut, Hawaii, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Rhode Island, South Dakota, Vermont, Virginia and Washington.

The nation’s highest wage floors will take effect in some of the nearly 50 cities and other localities that will impose minimum pay hikes.

Twenty-nine localities in California will see pay hikes, including a $20.25 an hour wage floor that will take effect in West Hollywood. Eight localities in Washington will increase their minimum wage, among them the country’s highest wage floor: $21.65 an hour in Tukwila.

The latest round of pay increases, however, will not affect 20 states concentrated in the South that lack a minimum wage or offer a minimum wage that does not exceed the federal minimum.

The last federal minimum wage hike took place in 2009, when Congress raised the pay floor to its current level. Since then, the federal minimum wage has lost more than 30% of its value due to inflation, EPI found.

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(NEW YORK) — The U.S. economy expanded more than economists expected over a recent three-month period, recording robust growth despite concerns about sluggish hiring and cash-strappped shoppers, federal government data on Tuesday showed.

The U.S. economy grew at an annualized rate of 4.3% in the third quarter in the government’s initial estimate, marking an acceleration from 3.8% growth recorded in the previous quarter.

A boost in consumer spending helped propel the economic surge in gross domestic product (GDP) over three months ending in September, the U.S. Commerce Department said. Consumer spending, which accounts for about two-thirds of U.S. economic activity, is a key bellwether for the outlook of the nation’s economy.

The GDP reading stemmed in part from a rise in exports and a drop-off in imports, which may have resulted from tariffs issued earlier this year by President Donald Trump.

The government’s GDP formula subtracts imports in an effort to exclude foreign production from the calculation of total goods and services.

The strong economic growth in the third quarter appeared to defy fears about the sluggish labor market, which some observers have viewed as a warning sign for the wider economy.

Hiring slowed sharply in recent months. The unemployment rate ticked up to 4.6% in November from 4.4% in September. Unemployment remains low by historical standards but has inched up to its highest level since 2021.

Meanwhile, inflation has hovered nearly a percentage point higher than the Federal Reserve’s target rate of 2%.

Those conditions have put the Fed in a bind, since the central bank must balance a dual mandate to keep inflation under control and maximize employment. To address pressure on both of its goals, the Fed primarily holds a single tool: interest rates.

Earlier this month, the Fed cut its benchmark interest rate a quarter of a percentage point in an effort to boost hiring. The move amounted to the third rate cut this year, bringing the Fed’s benchmark rate to a level between 3.5% and 3.75%.

Interest rates have dropped significantly from a recent peak attained in 2023, but borrowing costs remain well above a 0% rate established at the outset of the COVID-19 pandemic.

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(NEW YORK) — Oil prices jumped about 3% after President Donald Trump this week threatened to blockade all sanctioned oil tankers traveling in and out of Venezuela.

Venezuela, which has the largest known oil reserves in the world, exports hundreds of thousands of barrels of oil each day.

The threatened blockade risks a reduction of global oil supply and an amplification of geopolitical uncertainty — both of which could further push up oil prices and, in turn, pinch drivers at the pump, some analysts told ABC News.

But, they added, the effect on prices will likely remain muted unless the conflict escalates significantly, since Venezuela accounts for less than 1% of global oil output and most of its oil is sold on the black market.

Here’s what to know about what the threatened U.S. blockade means for oil and gasoline prices:

Where does the blockade stand and how has Venezuela responded?
On Tuesday, Trump threatened what he called a “blockade” of all sanctioned oil tankers traveling in and out of Venezuela, ratcheting up pressure on the Venezuelan President Nicolas Maduro, whose government depends in part on revenue derived from oil sales.

“Venezuela is completely surrounded by the largest Armada ever assembled in the History of South America,” Trump wrote in a social media post. “It will only get bigger, and the shock to them will be like nothing they have ever seen before.”

A day later, Maduro said Venezuela would continue to trade oil, defying Trump’s threat.

“Trade in and out will continue — our oil and all our natural wealth that by the constitution and Bolivar’s legacy belongs — our wealth, our land, and our oil — to its only legitimate owner, which for centuries and centuries has been our sovereign people of Venezuela,” Maduro said on Wednesday, originally in Spanish.

The U.S. currently has 11 warships in the Caribbean — the most in decades — but even with an increased military presence, that would likely not be enough to put in place a blockade in the traditional sense, which involves sealing a country’s coastline completely and would effectively have been a declaration of war.

Why has the threatened blockade pushed up oil prices?
The threatened blockade of sanctioned oil tankers drove up the U.S. West Texas Intermediate futures price — a key measure of U.S. oil prices — by about 3%, landing the price around $56.50 per barrel.

The measure had dropped to its lowest level since 2021 on Tuesday, just hours before Trump’s announcement. The dip in prices stemmed from a glut of oil alongside relatively slow global economic growth, which has constricted demand for fossil fuels.

“Everybody and their grandmother is bearish on oil prices,” Denton Cinquegrana, chief oil analyst at the Oil Price Information Service, told ABC News.

The threatened blockade disrupted those price doldrums, at least to a minor degree, some experts said.

Venezuela has exported about 749,000 barrels per day this year, with at least half that oil going to China, according to data from Kpler. That oil output amounts to less than 1% of global supply.

The news caused a “knee-jerk reaction” in oil markets due to heightened uncertainty tied to the U.S.-Venezuela conflict, Christopher Tang, a professor at the UCLA Anderson School of Management who studies supply chains, told ABC News. A continued standoff could push oil prices up to around $65 or $70 per barrel, but they’re unlikely to go much higher, Tang added.

“It’s not going to go up to $100 a barrel,” Tang said.

What could the threatened Venezuelan oil blockade mean for gas prices?
A jump in oil prices typically brings about an ensuing uptick in the cost of gasoline at the pump, some experts said, since crude oil makes up the key ingredient in auto fuel.

“The single most important price driver of gasoline is crude oil. As crude oil goes up, we expect gasoline to go up,” Timothy Fitzgerald, a professor of business economics at the University of Tennessee who studies the petroleum industry, told ABC News.

The average price of a gallon of gas stands at about $2.88, which marks a 5% decline from a year earlier, AAA data showed. Gas prices are hovering near their lowest level in four years due in part to the low cost of crude oil.

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(WASHINGTON) — An inflation report to be released on Thursday will offer a look at price increases for the first time in nearly two months, after the 43-day government shutdown impaired data collection.

The fresh data is set to arrive amid an uptick of inflation over recent months that has coincided with a flurry of tariffs issued by President Donald Trump. Economists expect that acceleration of price increases to have continued last month, forecasting a jump in year-over-year inflation from 3% in September to 3.1% in November.

The report will detail the latest price movements for high-profile items like coffee, beef and eggs.

In September — the most recent month for which data is available — the price of coffee soared nearly 19% and the price of beef jumped about 15%, when compared to the same month a year prior.

The year-over-year price of eggs dropped nearly 5% in September, offering a bright spot for consumers.

The federal government will issue partial price data for October, but the release will not include a figure for the overall rise in prices that month, since officials failed to collect sufficient information during the government shutdown, the Bureau of Labor Statistics (BLS) previously said in a statement.

The latest snapshot of price increases comes at a wobbly period for the U.S. economy, landing in a period marked by sluggish hiring and elevated inflation.

Two major economic data releases earlier this week flashed warning signs, some analysts previously told ABC News.

The U.S. added 64,000 jobs in November, which marked a significant decline from 119,000 jobs added in September, the most recent month for which complete data is available, the BLS said in a jobs report on Tuesday.

The unemployment rate ticked up to 4.6% in November from 4.4% in September. Unemployment remains low by historical standards but has inched up to its highest level since 2021.

A retail sales report on Tuesday also sounded a cautionary note about consumer spending, which accounts for about two-thirds of U.S. economic activity. Retail sales were left unchanged in October from September, meaning performance remained flat despite the ramp-up of the holiday season, U.S. Census Bureau data showed.

Last week, the Federal Reserve cut its benchmark interest rate a quarter of a percentage point in an effort to boost the sluggish labor market. The move amounted to the third rate cut this year, bringing the Fed’s benchmark rate to a level between 3.5% and 3.75%.

Interest rates have dropped significantly from a recent peak attained in 2023, but borrowing costs remain well above a 0% rate established at the outset of the COVID-19 pandemic.

The Fed is stuck in a bind, since the central bank must balance a dual mandate to keep inflation under control and maximize employment. To address pressure on both of its goals, the Fed primarily holds a single tool: interest rates.

The pressure on both sides of the Fed’s dual mandate present a “challenging situation” for the central bank, Fed Chair Jerome Powell said at a press conference in Washington, D.C., last week.

“There’s no risk-free path for policy as we navigate this tension between our employment and inflation goals,” Powell added.

The Fed will meet again to adjust interest rates next month. The odds of interest rates being left unchanged stand at about 75%, while the chances of a quarter-point rate cut register at 25%, according to CME FedWatch Tool, a measure of market sentiment.

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(NEW YORK) — The board at Warner Bros. Discovery Inc. said early on Wednesday that its members had unanimously recommended that shareholders reject Paramount Skydance’s bid for the company in favor of Netflix’s earlier bid.

“Following a careful evaluation of Paramount’s recently launched tender offer, the Board concluded that the offer’s value is inadequate, with significant risks and costs imposed on our shareholders,” Samuel A. Di Piazza, Jr., board chair, said in a statement.

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(NEW YORK) — The Walt Disney Company on Thursday announced plans to invest $1 billion in artificial intelligence company OpenAI, in a deal that will grant the company access to copyrighted characters from “Star Wars,” Marvel and other properties for users of AI short-form video generator Sora.

“The rapid advancement of artificial intelligence marks an important moment for our industry, and through this collaboration with OpenAI we will thoughtfully and responsibly extend the reach of our storytelling through generative AI, while respecting and protecting creators and their works,” Disney CEO Bob Iger said in a statement on Thursday.

Disney is the parent company of ABC News.

This is a developing story. Please check back for updates.

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(NEW YORK) — Paramount launched a hostile bid for Warner Bros. Discovery this week, just days after Netflix struck a deal to acquire the legacy media company.

The rival multi-billion dollar efforts to purchase streaming platform HBO Max and movie studio Warner Bros., among other assets, could upend the media industry and shape content viewed by hundreds of millions of people.

For now, the outcome remains highly uncertain. Any acquisition of Warner Bros. Discovery would likely be reviewed by the Trump administration, which could move to block a proposed merger over anti-monopoly concerns, according to antitrust experts from Vanderbilt University, the University of Tennessee and the Cardozo Law School.

The government approval process could take anywhere from several months to more than a year, the experts said.

The Department of Justice did not immediately respond to ABC News’ request for comment.

Here’s what to know about the government hurdles faced by a potential blockbuster deal to acquire Warner Bros:

What government hurdles await a bid from Netflix or Paramount?

Streaming giant Netflix appeared to win the bidding war for Warner Bros. Discovery last week, when the two firms announced a merger. Within days, however, Paramount launched a hostile bid for Warner Bros. Discovery, meaning Paramount plans to appeal to shareholders in an effort to overcome the wishes of management.

The $108 billion bid from Paramount encompasses the HBO Max streaming service, the Warner Bros. film production company and cable channels such as CNN. Netflix established its agreement with Warner Bros. Discovery at a lower price of $83 billion, though the Netflix offer excluded the cable channels.

Ultimately, the prevailing bid for Warner Bros. Discovery — whether from Paramount or Netflix — will likely face scrutiny from the Trump administration that could doom the proposal if agency officials consider the newly created company in violation of anti-monopoly law, experts said.

An antitrust review of the merger would draw on a standard established in the Clayton Antitrust Act of 1914, some experts said. The law prohibits mergers in which “the effect of such acquisition may be substantially to lessen competition, or to tend to create a monopoly.”

As part of its assessment, Trump officials would examine the market share of the newly created company, especially with regard to whether it could result in higher prices for consumers or reduced fees for creators selling content to media companies, Maurice Stucke, a law professor at the University of Tennessee, told ABC News.

An antitrust review could also focus on the potential impact on content distributors, such as movie theaters, Stucke noted.

“It’s not just a question of higher prices,” Stucke said. “It could be less content, less choice, less innovation and a decrease in quality — all of those could be a concern.”

If the Trump administration considers a potential merger illegal, a federal agency could seek a settlement under terms that would assuage government concerns.

Typically, the Federal Trade Commission or the Department of Justice (DOJ) are tasked with settlement negotiations or legal action tied to antitrust concerns.

In June, for instance, the DOJ announced a settlement agreement that permitted Hewlett Packard Enterprise’s (HPE) $14 billion purchase of Juniper Networks, a digital infrastructure firm. The settlement requires HPE to divest a part of its business and license Juniper Network’s critical software to competitors, the DOJ said.

If a settlement between the government and the firm cannot be reached, the Trump administration may move to sue the company in an effort to block the merger. A lawsuit would present a task for the Trump administration, Stucke said: “How do you prove this in court?”

The potential merger could also receive scrutiny from state-level regulators or the European Union.

How may regulators weigh a bid from Netflix or Paramount?

Proposals from Netflix or Paramount could each raise antitrust concerns, but for slightly different reasons, some experts said.

Netflix is the most popular streaming service, boasting 300 million subscribers worldwide as of late 2024, the most recent time for which data is available. The company accounts for 46% of mobile app monthly active users in global streaming, according to a CNBC analysis of data from intelligence firm Sensor Tower. After acquiring HBO Max, that share of app users would rise to 60%, CNBC said.

“Netflix has studios and a big chunk of streaming,” Sam Weinstein, a professor at the Cardozo School of Law who focuses on antitrust, told ABC News. “If you think that’s a market, they might have a big enough chunk that they can raise prices to impact streamers.”

“On the other hand, they’re a big buyer of projects. Creators might think, ‘Well now there’s one less studio to bid on my work,” he added.

Netflix may seek a broad definition of the market that includes consumers of online video, such as YouTube and short-form social media content, rather than merely traditional streaming, according to Weinstein.

“In that larger market, Netflix has a much smaller share,” Weinstein said.

Speaking to reporters on an earrings call on Friday, Netflix co-CEO Ted Sarandos voiced confidence about government approval of the merger.

“This deal is pro-consumer, pro-innovation, pro-worker, it’s pro-creator, it’s pro-growth,” Sarandos said, adding that the firm would “work really closely with all the appropriate governments and regulators.”

Paramount+ counts a smaller streaming audience than Netflix, recording about 79.1 million subscribers in September 2025, or less than a third of the audience of Netflix. The comparatively small market share for streaming could lessen concern among regulators about the potential to push up prices for consumers, some experts said.

Still, Paramount boasts a movie studio of its own, Paramount Pictures, presenting a risk of decreased competition for content production in the event of a potential merger, Rebecca Allensworth, a law professor at Vanderbilt University, told ABC News. In turn, TV shows or movies could command lower prices for creators, while actors or other workers could lose out on pay, she noted.

“At this moment, you can approach either Warner or Paramount as competitive studios,” Allensworth said. “This will take away one of those options.”

Speaking to CNBC on Monday, Paramount Skydance CEO David Ellison addressed antitrust concerns, saying the offer from Paramount compares favorably to the one from Netflix when considered through the lens of preserving a competitive industry.

“What we’re creating by putting these two companies together is a real competitor to Netflix, a real competitor to Amazon, a real competitor to Disney — not something that is so anti-competitive,” Ellison said.

Could the Trump administration take into account issues unrelated to competition?

The Trump administration may retain leeway to consider issues unrelated to competition, including potential agreements surrounding coverage at new outlets such as Warner Bros. Discovery-owned CNN, some experts said, noting the murky nature of antitrust law.

“A speeding violation or murder is fairly clear cut,” Stucke said. “With bringing an antitrust claim, there’s a lot of discretion.”

Trump, a frequent critic of major news outlets including CNN, told reporters on Sunday that he would “be involved” in the decision on a potential Warner Bros. Discovery merger. Trump’s willingness to take a direct role in deal evaluation departs from standard practice in which the president has sought to distance himself from antitrust reviews, Weinstein noted.

“The norm is that the White House wouldn’t get involved — that definitely isn’t happening here,” he said.

Speaking on the red carpet at the Kennedy Center honors on Sunday, Trump raised antitrust concerns about a potential Netflix acquisition, saying the deal “could be a problem” due to the market share of the new firm.

The circumstances afford the Trump administration leverage to extract potential concessions from a buyer like Netflix or Paramount, since in each case the purchase presents legitimate antitrust issues, granting Trump an opportunity to exercise robust oversight of the merger while seeking a favorable settlement, Allensworth said.

“Because antitrust law would likely find at least serious problems with the merger, Trump can make that all go away on terms that he agrees to,” Allensworth added.

Weinstein agreed, suggesting that their may be a court-enforceable agreement.

“It’s entirely possible you might have a consent decree with conditions that are non-competitive,” Weinstein said.

As part of a process seeking Federal Communications Commission approval for its $8 billion acquisition of Paramount earlier this year, Skydance agreed to a series of concessions that appeared to align with the views of the Trump administration, including agreements to forego implementation of diversity, equity or inclusion programs and appoint an ombudsman.

In a statement when the acquisition was approved in July, FCC Chairman Brendan Carr said the changes aimed to improve public trust in mainstream news outlets like CBS.

“Americans no longer trust the legacy national news media to report fully, accurately, and fairly. It is time for a change,” Carr said. “That is why I welcome Skydance’s commitment to make significant changes at the once storied CBS broadcast network.”

Experts underscored the uncertainty surrounding the outcome of a potential review of the Warner Bros. Discovery merger.

“If it’s a straight-up merger under antitrust guidelines, that’s one thing,” Weinstein said. “If you can win favor of the administration by making promises, that makes the deal unpredictable.”

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