Donald Trump Raises Red Flag Over Netflix-Warner Bros. Deal

Trump popped up in D.C., sang Ted Sarandos' praises, and then immediately threw a big yellow flag on Netflix's plan to swallow Warner Bros. Discovery. It was one of those 'love the player, not totally sold on the game' moments.

What Trump said (and what he meant)

Speaking to reporters, President Trump said he met Netflix co-CEO Ted Sarandos in the Oval Office last week and called him 'fantastic,' 'a great person,' and someone who has done a 'legendary job.' Then he pivoted to the deal itself, warning that Netflix buying WBD could be 'a problem' because of how much market share it would consolidate. He also stressed that no promises were made to Sarandos about approvals.

'That is for some economists to tell. And I will be involved in that decision too.'

Translation: there is a formal process, but he is signaling he plans to have a say. He also told another outlet the merger 'has to go through a process' and we will 'see what happens.' For context, presidents typically do not put their thumb on the antitrust scale, but Trump is openly staking out a hands-on role in corporate oversight.

The deal Netflix is chasing

If your eyes glaze over at deal math, here is the clean version of what is on paper and how it fits together:

• Headline price everyone keeps tossing around: roughly $72 billion for Netflix to acquire Warner Bros. Discovery.
• Per-share terms: $23.25 in cash plus $4.50 in Netflix stock, for a total of $27.75 per WBD share.
• Enterprise value: $82.7 billion (that is equity plus WBD's debt; it is why the EV number is bigger than the $72B equity headline).
• Financing: Wells Fargo is ready to provide up to $59 billion in bridge loans to get it over the line.
• What comes with the deal: HBO, the Warner Bros. film studio, and HBO Max.
• What does not: cable networks like CNN and TNT are carved out.
• Safety valve: if regulators kill it, Netflix owes a $5.8 billion breakup fee.

The rival bid wrinkle

Paramount tried to crash the party with a $30-per-share all-cash offer backed by Larry Ellison. WBD did not bite. Paramount is now accusing Warner Bros. Discovery of favoring Netflix and is weighing legal options. Expect Netflix to argue to regulators that it is not just battling Disney and Amazon, but also YouTube, TikTok, and the broader attention economy, which is their way of saying the market is bigger than 'streaming services with prestige TV'.

Regulators, assemble

This whole thing still needs sign-off from the Department of Justice, the European Commission, and other watchdogs around the world. That is a lot of hurdles, especially with a breakup fee that large staring everyone in the face if it goes sideways.

Bottom line

Trump likes Sarandos. He is less cozy with the idea of Netflix getting even bigger by absorbing WBD's crown jewels. Given his comments about being 'involved,' expect extra scrutiny on a deal that was already going to get picked apart from every angle.