Netflix’s Sarandos Met Trump Ahead of Historic Warner Bros. Deal

Netflix co-CEO Ted Sarandos met with President Donald Trump at the White House in mid-November to discuss a range of topics, including the upcoming sale of Warner Bros. Discovery, according to people familiar with the meeting. The conversation lasted over an hour.

During the discussion, Trump reportedly said Warner Bros. should go to the highest bidder. Sarandos agreed and argued that Netflix’s offer was strong. He also defended his company, saying it wasn’t a monopoly and had faced subscriber losses in past years.

“Netflix doesn’t have broadcast networks or cable channels,” Sarandos told Trump. “Our competition isn’t just other streaming services. We’re the fifth or sixth largest TV distributor in the U.S. Buying Warner Bros. would make us about the size of YouTube here.”

After the meeting, Sarandos felt that Netflix wouldn’t face immediate opposition from the White House, contrary to claims made by rival bidder Paramount Skydance Corp. He concluded that Paramount’s leadership was overestimating its political influence and might underbid, giving Netflix an advantage, according to Bloomberg.

On Friday, Netflix agreed to pay $82.7 billion, including debt, to acquire Warner Bros., one of the largest media deals ever. If completed, Netflix would take over the historic Hollywood studio and HBO. However, the deal isn’t guaranteed. Paramount may still launch a hostile bid, and Netflix faces opposition from Hollywood guilds. Warner Bros. must also spin off its struggling cable networks.

Sarandos’ White House visit shows the importance of political connections in major media deals. On Dec. 3, just two days before Netflix announced the agreement, Paramount sent a letter to Warner Bros., claiming the sale was “tainted.” The Ellison family, which controls Paramount, could try to influence the White House to block Netflix’s deal.

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