Netflix’s recent exit from the bidding for Warner Bros. Discovery can be linked to several factors—one being Susan Rice.
Rice, who served as the national security adviser and U.N. ambassador during the Obama administration, is currently on Netflix’s board. She made headlines recently, although perhaps not for the best reasons.
During a podcast hosted by Preet Bharara, a notable Democrat and former attorney, Rice expressed concerns regarding companies that adapt quickly to the demands of the Trump administration. She suggested they might face repercussions if Democrats regain power.
“I think these companies might think that if Democrats come back, they can revert to the old rules, believing they will be forgiven for their past actions,” she remarked.
Needless to say, these statements did not sit well with Trump, who took to Truth Social to voice his discontent: “Netflix should immediately fire Susan Rice for being a deranged racist, or they will have to pay the price,” he said.
This was particularly unfortunate timing as the Justice Department was intensifying its scrutiny of Netflix’s ongoing $73 billion acquisition of WBD, evaluating potential monopolistic implications, especially concerning HBO Max.
Amid mounting regulatory concerns, Netflix CEO Ted Sarandos started engaging with lobbyists to stave off any price increases. Following Rice’s comments, he met with key individuals in the Justice Department to make his case.
Shortly after that meeting, Netflix pulled out of the bidding, which has now shifted to Paramount Skydance, which had upped its offer to $80.5 billion. Sarandos explained that rising trading prices influenced the decision.
Despite Sarandos’ view that competition with YouTube alleviates antitrust worries, sources indicate that the Justice Department remains concerned about the deal.
Rice’s comments seem to have complicated Sarandos’ efforts, with some administration insiders suggesting he could have benefited from bringing her along to his meeting. A Netflix spokesperson clarified that Sarandos’ meeting had been scheduled two weeks prior and was unrelated to Rice. Attempts to reach her for comment were unsuccessful.
