Netflix’s co-CEO Ted Sarandos is set to visit the White House for meetings on Thursday as negotiations heat up over the streamer’s bid for Warner Discovery. The main topic of discussion is likely to be President Trump’s recent demand that Netflix fire board member Susan Rice, although it remains unclear whether Sarandos will meet with Trump directly.
In a post on Truth Social, Trump urged Netflix to “immediately” fire Rice or “pay the consequences.” Sarandos responded by emphasizing that the deal between Netflix and Warner Discovery is purely a business transaction and not a political issue.
As Netflix works towards finalizing a deal to acquire Warner Bros. Discovery’s studios and streaming businesses for $83 billion, Paramount Skydance has recently upped its offer to $31 a share. Warner Bros. Discovery’s board will further engage with Paramount to explore the possibility of a superior proposal, as defined in their existing agreement with Netflix. If Paramount Skydance’s offer is deemed superior, Netflix will have the opportunity to propose revisions to its deal within four business days.
Meanwhile, Paramount CEO David Ellison attended the State of the Union address as a guest of Republican Senator Lindsey Graham, showcasing the company’s political connections. Additionally, the Department of Justice Antitrust division is currently evaluating Netflix’s market power and dealmaking activities. Sarandos has been actively working to dispel any misconceptions about Netflix’s market share, emphasizing that Nielsen data shows Netflix only holds a 9% share of the business, or 10% when combined with HBO.
In a recent interview with Variety, Sarandos stated, “Most of the work that we’ve been doing is un-ringing the bells of a misinformation campaign. What is our market share? I mean, the market share is very clear. Nielsen publishes the market share constantly, called The Gauge, and it shows that we are 9% of the business. And if you put HBO together with us, we’re 10% of the business. And it certainly is nowhere near monopoly, which folks have been batting around the last couple of days, which is 50-70% market share. It’s insane.”
Netflix has refrained from commenting on the ongoing developments. The streaming giant’s future plans and potential impact on the entertainment industry are eagerly awaited as the negotiations with Warner Discovery and Paramount continue to unfold.
