Donald Trump on Potential ‘Problem’ With Netflix Warner Bros. Deal

Donald Trump lauded Netflix co-CEO Ted Sarandos and addressed the implications of the proposed Netflix-Warner Bros. merger during a public appearance in Washington, D.C. The former president praised Sarandos’ leadership while raising concerns about the deal’s potential impact on market share and regulatory scrutiny.

What did Donald Trump say about Ted Sarandos and Netflix Warner Bros. deal?

President Donald Trump told Deadline that he met with Netflix co-CEO Ted Sarandos and praised him as “fantastic” and “a great person,” adding, “Ted has really done a legendary job.” Trump confirmed Sarandos had visited the Oval Office the previous week. However, Trump warned that Netflix’s $72 billion acquisition of Warner Bros. Discovery “could be a problem” due to market concentration. “They have a very big market share. When they have Warner Bros., that share goes up a lot,” he said.

Trump stated that he would be involved in the review process, saying, “That’s for some economists to tell. And I’ll be involved in that decision too.” He emphasized that no regulatory guarantees were discussed during his meeting with Sarandos. Trump commented further on the merger to NBC News, saying, “Well, that’s got to go through a process, and we’ll see what happens.” While presidents traditionally do not get involved in antitrust approvals, Trump noted his administration’s active role in corporate oversight.

Netflix will acquire Warner Bros. for $23.25 in cash and $4.50 in stock per share, with Wells Fargo backing up to $59 billion in bridge loans. The enterprise value of the deal is $82.7 billion. The deal includes HBO, the Warner Bros. film studio, and HBO Max but excludes cable networks like CNN and TNT. Netflix has agreed to a $5.8 billion breakup fee if regulators block the deal.

Paramount offered $30 per share in cash, backed by Larry Ellison, but was rejected. Paramount accused Warner Bros. Discovery of favoring Netflix and may consider legal action. Netflix is expected to argue that it competes with YouTube, TikTok, and others in a broad streaming market. The deal awaits approval from the DOJ, the European Commission, and other global regulators.

Source: Comingsoon.net