In November, Ted Sarandos, the co-CEO of Netflix visited the White House for an extensive discussion with Donald Trump. As per Bloomberg, they covered various topics, primarily focusing on Netflix’s intent to bid on Warner Bros. By the conclusion of their discussion, Sarandos felt that “Netflix wouldn’t encounter immediate resistance from the White House.”
This week, Netflix clinched victory in the bidding competition for Warner, presenting an offer of $82.7 billion. It’s widely recognized that Paramount, led by CEO David Ellison, was keen on obtaining the renowned studio alongside its streaming assets. Ellison and his father, Larry Ellison, maintain strong connections with the White House and during their proposal to Warner, insinuated that they were uniquely positioned to navigate the regulatory challenges associated with further media consolidation.
Sarandos appears to have correctly anticipated that the Ellisons overvalued their political influence. Despite some public attempts to sway the White House against the transaction, Netflix triumphed, at least for the moment. There’s still a possibility that Paramount might initiate a hostile takeover attempt or that the Justice Department might seek to undermine the agreement — nothing is finalized yet.
Sarandos had previously attempted to secure Paramount before David Ellison intervened, hence snatching Warner Bros. right from under him is likely a personal triumph.
