Sunday, Chairman Donald Trump said he plans to play a direct role in the federal review of Netflix Inc (NASDAQ:NFLX) takeover of Warner Bros. Discovery (NASDAQ:WBD)even as he praised the former’s co-CEO, Ted Sarandos.
Trump signals a practical assessment of Netflix’s offer
“I will be involved in that decision,” Trump said told Deadline’s Ted Johnson on the Kennedy Center Honors red carpet, adding that the merged company would have a “very large market share” that “could be a problem” depending on what economists determine.
Netflix agreed on Friday to buy Warner Bros. film and TV studios. to acquire Discovery and its streaming business for $72 billion in cash and stock. The deal, which has an enterprise value of $82.7 billion, is expected to close within 12 to 18 months, pending regulatory approval.
See also: Netflix is in exclusive discussions about the acquisition of Warner Bros. Discovery: Regulatory Roadblocks Ahead
Praise for Sarandos, but no guarantees discussed
Despite expressing concerns about consolidation, Trump spoke warmly about Sarandos, calling him a “fantastic” person who has “done legendary work” at Netflix, the report said.
He said the director visited the Oval Office last week, although the two did not discuss the merger.
The sale requires Warner Bros. Discovery separates its studio and streaming assets from its traditional television networks before transferring the Warner Bros. segment to Netflix.
The streamer has arranged up to $59 billion in bridge financing through Wells Fargo and has agreed to pay a $5.8 billion break fee if regulators reject the deal.
Intensification of competition and accusations of unfair trial
The merger follows a heated bidding war David Ellison’s Paramount Skydance (NASDAQ:PSKY) And Comcast Corp (NASDAQ:CMCSA).
Paramount Skydance has signed Warner Bros. Discovery also accused of developing a process that favored Netflix.
Price promotion: According to Netflix, shares are down 5.88% over the past five days Benzinga Pro.
Benzinga’s Edge Stock Rankings shows that NFLX glides over short-, medium-, and long-term time frames, with additional performance data available here.
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