On December 8, Netflix announced a blockbuster deal last Friday, spending $72 billion to acquire Warner Bros. According to Bloomberg, people familiar with the matter said Netflix co-CEO Ted Sarandos went to the White House to meet with Trump in mid-November. During the meeting, which lasted more than an hour, the two discussed a range of topics, including the sale of Warner Bros.
Netflix co-CEO Sarandos
According to people familiar with the matter,Trump said at the time that Warner Bros. should be sold to the highest bidder. Sarandos agreed and laid out Netflix's rationale for the acquisition. He argued that Netflix, the leader in streaming television, is not a monopoly and suffered subscriber losses a few years ago.
Sarandos said Netflix does not own a broadcast network or cable channel. He also added that Netflix's competitors are not limited to streaming services and are the fifth or sixth largest distributor in the television industry. If Netflix acquires Warner Bros., it will be roughly the same size as YouTube in the United States.
Sarandos' sense at the end of the talks was that the acquisition would not attract immediate opposition from the White House, contrary to claims from rival Paramount.Sarandos believes the Ellison family, which controls Paramount, overestimated its political advantage and likely made a lower bid, creating an opportunity for Netflix.
So last Friday, Netflix agreed to acquire Warner Bros. for $72 billion ($82.7 billion including debt), one of the largest media deals in history. If the deal goes through, Netflix will take over Warner Bros., one of Hollywood's oldest and most prestigious studios, as well as HBO, which was its inspiration.