Netflix Inc. (NASDAQ:NFLX) co-CEO Ted Sarandos is reportedly scheduled to attend meetings at the White House on Thursday as the bidding war to acquire Warner Bros. Discovery (NASDAQ:WBD) heats up.
The meetings are likely to be centered around Netflix’s acquisition bid and President Donald Trump‘s demand for the streaming giant to remove board member and former Biden-era advisor Susan Rice, POLITICO reported on Wednesday.
Although it is unclear if Sarandos will have a meeting with Trump during this visit, Sarandos reportedly had a private meeting with Trump in November.
Paramount Skydance Corp (NASDAQ:PSKY) raised its offer for Warner Bros. Discovery to $31 per share in cash, up from its earlier $30-per-share ($108.4 billion) bid on Tuesday. The revised proposal includes a $7 billion regulatory termination fee and a $2.8 billion breakup fee that Warner Bros. would need to pay Netflix if it exits its current agreement.
Warner Bros.’ board said Paramount’s revised bid could potentially qualify as a “superior proposal” compared to Netflix’s offer. The company will now continue discussions with Paramount to evaluate the bid, after which Netflix would have four business days to improve its agreement if the proposal meets that threshold.
Netflix did not immediately respond to Benzinga‘s request for comment.
Political Pressure On Netflix
Sarandos downplayed political pressure from Trump, telling BBC Radio 4 that “This is a business deal. It’s not a political deal.” Meanwhile, the company faces scrutiny from the U.S. Department of Justice’s Antitrust Division over its market power and dealmaking practices.
On Tuesday, Republican attorneys general from 11 states asked the DoJ to closely review Netflix’s proposed acquisition, arguing the deal could threaten U.S. leadership in the film industry.
Interestingly, Paramount CEO David Ellison‘s father, Oracle (NASDAQ:ORCL) co-founder Larry Ellison, has close ties with Trump. David Ellison also attended Trump’s State of the Union address as a guest of Sen. Lindsey Graham (R-S.C.).
Despite the ongoing political intricacies, investor Gary Black predicted that Netflix would “emerge as victor” in the tussle. He also suggested that even if Paramount succeeds in the bid, Netflix shares could rebound to the $100 mark.
Benzinga Edge Stock Rankings shows that Netflix had a weak price trend over the short, medium, and long term. Its quality ranking was strong at the 77th percentile, whereas its value ranking was poor at the 16th percentile. Benzinga’s screener allows you to compare Netflix’s performance with its peers.
NFLX Price Action: Netflix shares declined 9.11% on a year-to-date basis, according to Benzinga Pro data. On Wednesday, it closed 5.98% higher at $82.70
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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