Even though the US Department of Justice (DOJ) possesses the authority to prevent mergers it considers contrary to antitrust regulations, Trump’s sway over the DOJ should not be ignored. While Paramount seemed to cultivate a positive rapport with the president in the past, Netflix co-CEO Ted Sarandos may have forged a similar connection recently.
Sarandos “had a discussion with the president in the past few weeks that lasted approximately two hours,” The Hollywood Reporter reported on Sunday, citing “multiple” unnamed sources. A White House official informed the publication that they cannot comment on “private meetings that may or may not have occurred,” and Netflix did not reply to the publication’s inquiries for comment.
At the same time, Trump’s association with the Ellisons and Paramount might have shifted recently. Today, the president criticized Paramount following an interview with Rep. Marjorie Taylor Greene (R-Ga.) that was featured on the news program 60 Minutes. As he stated on Truth Social, according to The Hollywood Reporter: “My main issue with the show, however, was not the low IQ traitor, but that the new ownership of 60 Minutes, Paramount, would permit a program like this to be broadcast. THEY ARE NO BETTER THAN THE PREVIOUS OWNERSHIP, who just compensated me millions of dollars for FAKE REPORTING about your beloved President, ME! Since they acquired it, 60 Minutes has actually become WORSE.”
Engaging the movie theater sector
The movie theater sector is among the staunchest opponents of Netflix’s WBD acquisition due to concerns that the streaming giant might limit theatrical releases and reduce licensing fees. Paramount is capitalizing on this anxiety.
As one of the longest-standing film studios (Paramount was established as Famous Players Film Company in 1912), Paramount has significantly stronger connections to the theater industry. Ellison asserted that if Paramount and WBD merge, there will be “an increased number of films in theaters.”
Sarandos remarked last week that Netflix intends to uphold WBD’s current movie release timeline, which reportedly extends through 2029.
Regarding streaming, Paramount’s announcement hinted at a “merger of Paramount+ and HBO Max,” supporting a November report that Paramount would integrate HBO Max into its primary streaming platform should it acquire WBD.
With various industries, major players, billions of dollars, and political factors in play, the narrative of the WBD division and/or merger is just beginning.
This article was updated on December 8 at 2:31 p.m. ET with comments from Sarandos.
