Netflix co-chief executive Ted Sarandos met with President Donald Trump in November to discuss a potential acquisition of Warner Bros. ahead of Netflix’s $82.7bn bid for the studio’s film and streaming businesses, according to reporting by Bloomberg and The Hollywood Reporter.
Meeting With Trump Ahead of the Bidding Process
Bloomberg and The Hollywood Reporter reported that Sarandos raised the prospect of a Warner Bros. deal during a meeting with Trump several months before the acquisition was announced. Trump reportedly told Sarandos that Warner Bros. should sell to the highest bidder. Sarandos is understood to have left the meeting believing that Trump would not immediately oppose the transaction.
After the reports were published on Sunday, Trump confirmed that the meeting had taken place. Commenting on the proposed acquisition, he said, “Netflix is a great company. They’ve done a phenomenal job. Ted is a fantastic man. I have a lot of respect for him. But it’s a lot of market share, so we’ll have to see what happens.”
Regulatory Uncertainty and Political Context
Netflix’s agreement to acquire Warner Bros. is valued at $82.7bn on an enterprise basis. The deal requires approval from federal regulators, and there remains uncertainty over whether it will clear antitrust review.
Before Netflix emerged as the successful bidder, Paramount had been widely viewed as the frontrunner to acquire the studio. That assumption was tied in part to Paramount chief executive David Ellison’s connections to the Trump administration.
Warner Bros. Leadership and the Sale Process
Bloomberg reported that Warner Bros. chief executive David Zaslav had been reluctant to pursue a sale and was surprised when Paramount began to explore an acquisition. Zaslav had expected Ellison to wait until Warner Bros. completed a planned corporate restructuring that would separate its film and streaming businesses from its cable television networks.
Following Paramount’s initial move, Warner Bros. said it would consider additional bids. That decision opened the door to a competitive process that ultimately resulted in Netflix securing the winning offer.
Although Netflix has prevailed in the bidding so far, Paramount could still re-enter the process by submitting a hostile bid.
Featured image credits: Heute.at
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