On Sunday, President Donald Trump said that he intends to play a direct role in the federal review of Netflix Inc.'s (NASDAQ:NFLX) takeover of Warner Bros. Discovery (NASDAQ:WBD), even as he praised the former's co-CEO, Ted Sarandos.
Trump Signals Hands-On Review Of Netflix's Bid
"I'll be involved in that decision," Trump told Deadline's Ted Johnson on the Kennedy Center Honors red carpet, adding that the merged company would command a "very big market share" that "could be a problem" depending on what economists determine.
Netflix agreed Friday to acquire Warner Bros. Discovery's film and TV studios and its streaming business for $72 billion in cash and stock. The deal, which carries an enterprise value of $82.7 billion, is expected to close in 12 to 18 months pending regulatory approval.
See Also: Netflix Enters Exclusive Talks To Acquire Warner Bros. Discovery: Regulatory Roadblocks Ahead
Praise For Sarandos, But No Guarantees Discussed
Despite raising concerns over consolidation, Trump spoke warmly of Sarandos, calling him a "fantastic" person who has "done a legendary job" at Netflix, the report said.
He said the executive visited the Oval Office last week, though the two did not discuss the merger.
The sale requires Warner Bros. Discovery to separate its studio and streaming assets from its traditional television networks before handing the Warner Bros. segment to Netflix.
The streamer has arranged up to $59 billion in bridge financing through Wells Fargo and agreed to a $5.8 billion breakup fee if regulators reject the deal.
Intensifying Competition and Accusations Of An Unfair Process
The merger follows a heated bidding war that included David Ellison's Paramount Skydance (NASDAQ:PSKY) and Comcast Corp (NASDAQ:CMCSA).
Paramount Skydance has also accused Warner Bros. Discovery of engineering a process that favored Netflix.
Price Action: Netflix shares are down 5.88% in the past five days, according to Benzinga Pro.
Benzinga's Edge Stock Rankings show NFLX slipping across short, medium and long-term time frames, with additional performance data available here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
