According to media mogul John Malone, the Donald Trump administration warned Netflix that it stood virtually no chance of securing regulatory approval for its proposed acquisition of Warner Bros. Discovery.
Previously, Netflix had offered a different explanation for withdrawing from the deal. The streaming giant announced its agreement with WBD in December last year, but the deal was ultimately abandoned. After months of regulatory scrutiny, Paramount Skydance completed its acquisition of Warner Bros. earlier in October, with CEO David Ellison leading the company.
Malone has been a Warner Bros. stakeholder since 2022, having previously held a significant stake in Discovery, Inc. During a recent appearance at the Paley Center for Media’s International Council Summit, Malone discussed the pressure the Trump administration allegedly placed on Netflix to prevent its acquisition of Warner Bros.
“They were right on the verge of pressing on, and were told by the administration that they had no chance of getting regulatory approval from the U.S.,” Malone shared. “I think that was really the spike that got ’em.”
Netflix’s White House meeting sparked questions over the deal
Following the signing of the Paramount-Warner Bros. agreement, Netflix co-CEO Ted Sarandos reportedly met with White House officials. Later that day, Netflix withdrew its bid, although Sarandos maintained that the President was “completely neutral” on the transaction.
Netflix’s official reason for backing out was that Warner Bros. Discovery deemed Paramount’s offer to be superior. Sarandos’ meeting with the Trump administration drew suspicion from Democrats, who at the time alleged that the deal involved political favoritism.
“There was mixed opinion amongst us [about Netflix dropping out] on the Warner Bros. Discovery side,” Malone added regarding the decision. “We would have seen, and would have liked to have seen, the different outcome. Though for shareholders this final outcome was more than sufficient.”
Most recently, Netflix laid off over a thousand people, including former head of film Dan Lin. The layoffs come at a turbulent period for the company, which is currently struggling with major drops in share prices.