Netflix’s proposed acquisition of Warner Bros. for $82.7 billion is currently under scrutiny by federal regulators. The deal’s approval is yet to be determined.
Reports from Bloomberg and The Hollywood Reporter indicate a twist in the acquisition race. Despite initial assumptions favoring Paramount, new revelations suggest that Netflix co-CEO Ted Sarandos engaged in discussions with President Donald Trump regarding the potential deal in November.
During their meeting, Trump allegedly advised Sarandos that Warner Bros. should sell to the highest bidder, leaving Sarandos with the impression that the president might not oppose the acquisition outright.
Further complicating matters, Warner Bros. CEO David Zaslav expressed reluctance to sell the company and was taken aback by Paramount’s sudden interest. Zaslav had anticipated that any acquisition talks would occur after the studio’s planned division of its movie and streaming divisions from its cable networks.
Despite Warner Bros.’ initial hesitance, the studio eventually opened up to alternative bids, resulting in a competitive bidding process that Netflix emerged victorious in. However, Paramount could still potentially enter the fray with a hostile bid.
