In November, Ted Sarandos, co-CEO of Netflix, visited the White House for an in-depth meeting with Donald Trump. According to Bloomberg, the discussion covered several topics, but the main focus was Netflix’s plan to bid on Warner Bros. By the end of their talk, Sarandos felt that “Netflix wouldn’t face immediate opposition from the White House.”
This week, Netflix emerged victorious in the bidding war for Warner, offering $82.7 billion. Paramount, led by CEO David Ellison, was also keen on acquiring the famed studio and its streaming assets. Ellison and his father, Larry Ellison, have strong connections to the White House, and as part of their pitch to Warner, they claimed that only they were equipped to navigate the regulatory challenges of further media consolidation.
Sarandos appears to have accurately judged that the Ellisons overestimated their influence in this situation. Despite some public attempts to sway the White House against Netflix’s deal, the streaming giant prevailed—for now. However, there remains the possibility that Paramount could initiate a hostile takeover, or that the Justice Department might intervene—nothing is set in stone.
Sarandos previously tried to acquire Paramount before David Ellison moved in, so securing Warner Bros. away from their grasp is likely a personal win for him.
