Donald Trump emphasized that due to the scale of market share, the transaction “may be a problem” and said that he would be involved in the decision-making process. He also announced that he met at the White House last week with one of Netflix's CEOs, Ted Sarandos, and said it was “fantastic.”
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How much of Warner Bros. does Netflix want to buy?
How much was Netflix valued in connection with the acquisition?
Who met with Donald Trump at the White House?
What do the president's advisers say about the transaction?
—We'll see what happens. Netflix is a great company, (…) but it is a large part of the market, said Trump when asked by a journalist about the takeover plan.
Netflix wants to buy part of Warner Bros
Warner Bros. Corporation Discovery (WBD) accepted on Friday an offer to purchase part of the enterprise, including film studios and streaming platforms, by Netflix as part of one of the largest transactions in the world of media and entertainment. The agreement does not cover television channels owned by WBD, including TVN and CNN.
As reported by Reuters, Netflix estimated the enterprise value of the acquired part of WBD at USD 82.7 billion, while the total value of the shares is USD 72 billion. WBD shareholders are to receive $23.25. in cash and $4.50. in Netflix shares. The giant's proposal in the streaming area was to exceed by $4. for a share the offer of its main rival in the bid to take over WBD, the Paramount Skydance concern, which intended to take over the entire WBD concern.
As reported by the Wall Street Journal, the agreement regarding Netflix's takeover of part of Warner Bros. is expected to be scrutinized by the Ministry of Justice. The resort has already started to analyze how the deal could further cement Netflix's dominance in the media industry.
High ranking an administration official said the president's advisers, including White House officials, were concerned about the deal. The announcement of the company's takeover also attracted the attention of politicians from both parties and Hollywood representatives.
Skydance Paramount incl. according to the New York Post, he was favored by the Trump administration for political reasons. It belongs to David Ellison, the son of one of the richest Americans, Larry Ellison, known for supporting President Trump. Ellison's company had also previously taken over Paramount and CBS, introducing programming changes preferred by the White House in the station's lineup.
