After a meeting in which Netflix co-CEO Ted Sarandos called Donald Trump “fantastic,” the President is nonetheless expressing some skepticism over the entertainment giant’s massive proposed acquisition of Warner Bros. Discovery’s streaming and studio assets, Deadline reports.
Trump told Deadline at the Kennedy Center Honors red carpet in Washington, D.C. on Sunday that whether the deal violates federal antitrust laws is “for some economists to tell. And I’ll be involved in that decision too.”
The President went on to praise Sarandos. “He came up. He was in the Oval Office last week. I have a lot of respect for him. He is a great person,” he said, confirming their meeting. “Ted has really done a legendary job.”
According to Deadline, Trump also said that Sarandos had not sought any pledges from the President ahead of the deal, which closed on Friday and saw Netflix shell out $72 billion, or $27.75 per share, in cash and stock, edging out Comcast and Netflix’s chief competitor, David Ellison’s Paramount Skydance.
“I think, in the history of Hollywood, there’s really been almost nothing like what he has done,” Trump said of Sarandos’ Netflix leadership over the years. However he also hesitated to endorse the deal. “They have a very big market share, and when they have Warner Bros. their market share goes up a lot” he told Deadline in his first comments on the merger since its announcement. “And that could be a problem.”
The acquisition is expected to be completed in 12-18 months, after WBD undergoes its previously plannned separation of its studio and streaming assets from its linear networks, and after the agreement receives regulatory approval, according to Deadline.
That’s not a given, though, as the tie-up has already invited bipartisan criticism, including from Democratic Senator Elizabeth Warren and Republican Representative Darrell Issa, which could ultimately influence the Trump administration to sue to block the deal. In that case, Netflix has agreed to pay a $5.8 breakup fee as part of the deal, per Deadline.
Paramount Skydance chief Ellison, whose father Larry Ellison is a major Trump donor, has raised his own concerns regarding the deal. Last week, the company accused WBD of running an unfair bidding process with Netflix as the predetermined victor, while also arguing that it was the only bidder that could bypass regulatory issues, according to Deadline. Notably, Paramount’s latest offer is reported to be $30 a share, higher than the $27.75 a share Netflix offer approved by WBD.