Earlier, Trump demanded the removal of Netflix board member Susan Rice over her remarks critical of the Republican government.
- Ted Sarandos played down the Trump threat in a BBC interview on Monday: "He likes to do a lot of things on social media."
- Paramount has reportedly submitted its enhanced bid for Warner Bros. Discovery.
- Netflix and Paramount shares rise in after-market; Stocktwits sentiment for NFLX flips to ‘bullish’ from ‘bearish.’
Netflix, Inc. Co-CEO Ted Sarandos on Monday played down threats from President Donald Trump related to the business and its ongoing deal with Warner Bros. Discovery, Inc. Retail investors, too, maintained a bullish stance, though there were growing calls to walk away from the deal and invest that money in original content.
Earlier, Trump demanded that the streaming giant fire board member Susan Rice after she suggested that corporations were bowing down to the current political administration and skirting policies and laws in the process.
The President’s remarks reignited concerns that Donald Trump could intervene in the proposed Netflix-WBD deal, despite his earlier assurances that he would stay out. Regulators were revising the transaction before Warner Bros. reopened talks with the other suitor, Paramount Skydance, last week.
"This is a business deal, it's not a political deal,” Sarandos said in an interview with the BBC, responding to concerns about Trump’s involvement. "He [Trump] likes to do a lot of things on social media," he added.
Paramount Submits Fresh Bid
On Monday, Reuters and Bloomberg reported that Paramount had submitted an enhanced bid for Warner Bros. The new, unspecified bid improves on the $30-a-share, all-cash proposal that Paramount took directly to Warner Bros. shareholders on Dec. 8 and addresses some of the company’s concerns with previous Paramount bids, Bloomberg reported.
The period of talks with Paramount ends on Monday, following which Warner Bros. shareholders will vote on Mar. 20 on which deal to accept. If the Warner Bros. board deems the new Paramount offer as superior to the current agreement with Netflix, the streaming company will have four days to respond.
Sarandos, who had earlier presented his points to a Senate committee on antitrust (full testimony here), again argued that Netflix’s deal is better than Paramount’s for the film industry. "We're buying a movie studio and a distribution entity that we don't currently have - we'll be adding to the market," he said.
DOJ Probe Into NFLX-WBD Deal
Meanwhile, Bloomberg and Deadline are reporting that the Department of Justice has officially launched an investigation into whether the combination of Netflix and Warner would create a monopoly and harm competition. Neither the government department nor the companies has confirmed the probe.
NFLX, PSKY Stocks Under Pressure
As the deal drags on, shares of Netflix, Inc. and Paramount Global remain under pressure. Netflix is down about 42% from its June peak, while Paramount has fallen roughly 46% from its September high.
On Monday, Stocktwits sentiment on Netflix flipped to 'bullish' from 'bearish' the previous day, with chatter intensifying around the latest developments. Opinion was divided, with some investors urging Netflix to walk away from the deal and others betting on a rebound.
“Netflix CEO - We have a rich history of walking away from acquisitions and let others pay higher premiums,” posted one user.
“Take the 2.8B fee and walk away. We tried and didn’t get it. Paramount can have it. Netflix will do fine without WB! We will know in the coming days or this week! Netflix do not let us down. Let it go ppl,” said another.
“This is slowly torturing people,” one user wrote, sharing a chart of Netflix’s stock swings during the turbulent Warner Bros. saga.
Paramount shares gained 0.7% in the after-market session on Monday, while Netflix stock rose 0.2%.
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