3 min read
The $82.7 billion acquisition of Warner Bros. by Netflix isn’t just a business win, it is a political coup. While “Wall Street” focused on the price tag, the real deal-making happened in “Washington”. New reporting reveals that a secret, high-stakes meeting with President Donald Trump was the turning point that emboldened Netflix to seize the victory.
The Kingmaker in the Oval Office
In mid-November, Netflix co-CEO Ted Sarandos ventured to the “White House” for a crucial sit-down with President Trump. For over an hour, the two discussed the media landscape. According to insiders, Trump was direct. He told Sarandos that Warner Bros. should simply sell to the highest bidder.
This private directive was the green light Netflix needed. Sarandos argued that his company was not a monopoly, comparing its size to YouTube and citing recent struggles. Trump, who has developed a friendly rapport with Sarandos, seemingly accepted the argument. Consequently, the Netflix executive left convinced that the President would not immediately oppose the acquisition.
Wooing the President
The battle for Warner Bros. was largely fought over who had the better relationship with the Trump administration. Paramount CEO David Ellison, the initial frontrunner, believed he had the inside track. His father, Larry Ellison, is a major donor, and Trump has publicly praised the family. Paramount convinced itself that only it could secure regulatory approval from the Trump Department of Justice.
However, Netflix had been quietly building its own bridge. Realising he lacked ties to the administration after the election, Sarandos engaged in a charm offensive. This culminated in a dinner at Trump’s Mar-a-Lago Club in December 2024, where the two bonded over their childhoods and love of entertainment.
Ultimately, Paramount’s reliance on political connections backfired. They underestimated Sarandos’ ability to pivot and win Trump’s favour directly.
Donald Trump: “I’ll Be Involved”
Despite the successful meeting, President Trump remains the wild card for the deal’s final approval. On Sunday, following the announcement, Trump confirmed the Oval Office meeting took place.
He lavished praise on the players involved. Trump said:
Netflix is a great company. They’ve done a phenomenal job.
Ted is a fantastic man. I have a lot of respect for him.
However, the President stopped short of a full endorsement. He signalled that his administration is watching the monopoly implications closely. Trump warned, explicitly noting that he will be “involved” in the final decision. He said:
But it is a big market share. It could be a problem.
While Netflix has won the auction, the fate of the merger now rests in the hands of a President who is eager to weigh in. As the regulatory review begins, all eyes are on the “White House”.
