Netflix’s Co-CEO Ted Sarandos To Reportedly Visit White House To Discuss Warner Bros. Deal As Paramount’s Bid Gains Momentum

• Among the agenda for the meeting are Netflix’s bid for the media giant and President Donald Trump’s demand that Netflix fire board member Susan Rice. 
• However, it was not sure whether Sarandos will meet Trump, the Politico report added. 
• Earlier in the day, a coalition of 11-state attorneys general had called the Department of Justice (DOJ) to scrutinize the proposed merger of Netflix and WBD.

Netflix CEO Ted Sarandos will reportedly attend meetings at the White House on Thursday to discuss the company’s proposal to acquire Warner Bros. Discovery. 

Among the agenda for the meeting are Netflix’s bid for the media giant and President Donald Trump’s demand that Netflix fire board member Susan Rice, a former Biden administration adviser, Politico reported on Wednesday citing people familiar with the matter. 

Netflix is under significant pressure from Paramount Skydance to acquire Warner Bros., particularly following Paramount’s recent $31-per-share offer. This new bid has led Warner Bros. to suggest that Paramount’s proposal might be more favorable than Netflix’s offer.

However, it was not sure whether Sarandos will meet Trump, the report added. 

Deal Under Scrutiny 

Earlier in the day a coalition of 11-state attorneys general had called the Department of Justice (DOJ) to scrutinize the proposed merger of the two firms. The attorneys general in the letter raised several concerns surrounding the deal. 

The letter said that if Netflix is allowed to complete its purchase of Warner Brothers, removing competitors and restricting access to essential content libraries could create a monopoly. This may result in higher subscription costs and less, lower-quality content for the State’s residents. 

The letter further said that the merger could be “disastrous for the theatrical motion picture business”, citing Netflix’s historic reluctance to put its movies in cinemas.

WBD Engaging More With Paramount

Warner Bros. Discovery (WBD) on Tuesday had said that its board has determined that the revised proposal from Paramount Skydance Corporation (PSKY) could reasonably be expected to lead to a "Company Superior Proposal”, and it said it will engage further with Paramount to determine if a deal can be reached. 

Warner Bros., however, said that its Netflix Merger Agreement remains in effect, and the board continues to recommend in favor of the Netflix transaction, and is not withdrawing or modifying its recommendation.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around WBD and NFLX stock trended in ‘extremely bullish’ territory at the time of writing, while for PSKY, it trended in ‘bullish’ territory. 

Shares of PSKY and NFLX have fallen 11% and 17%, respectively, in the past year. Meanwhile, WBD shares have risen 160% over the same period. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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