Will Netflix’s proposed $82.7 billion deal to acquire Warner Bros. receive approval from federal regulators? While Paramount was initially considered the frontrunner to acquire the storied movie studio, thanks to CEO David Ellison’s connections to the Trump administration, new reporting suggests a different narrative. Netflix co-CEO Ted Sarandos reportedly met with President Donald Trump in November to discuss a potential deal.
According to reports, Trump told Sarandos that Warner Bros. should sell to the highest bidder. The Netflix executive apparently left the meeting convinced the president would not immediately oppose the acquisition. After stories about the meeting surfaced, Trump confirmed it took place. Regarding the deal, he stated, “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.”
Further reporting indicates that Warner Bros. CEO David Zaslav was initially reluctant to sell the company. He was surprised when Paramount began exploring an acquisition, having expected Ellison to wait until the studio completed a planned split of its movie and streaming businesses from its cable networks. Ultimately, Warner Bros. decided to consider other bids, leading to a competitive process that Netflix won. However, Paramount could still remain in contention with a hostile bid.