President Trump addressed the proposed Netflix purchase of Warner Bros. for the first time since news of the deal broke last week.
Trump was asked by reporters ahead of Sunday night’s Kennedy Center Honors in Washington D.C. what he thought of the proposed deal, which is valued at $82.7 billion.
He praised Ted Sarandos, co-CEO of Netflix alongside Greg Peters, and noted that Netflix will have “a lot of market share” if the deal goes through.
“Well, that’s gotta go through a process, and we’ll see what happens,” he said. “Netflix is a great company. They’ve done a phenomenal job. Ted is a fantastic man. I have a lot of respect for him. But it’s a lot of market share, so we’ll have to see what happens.”
Asked if Netflix “should be allowed” to buy Warners, Trump added: “Well, that’s the question. They have a very big market share, and when they have Warner Bros., you know, that share goes up a lot. So I don’t know. That’s going to be for some economists to tell. … And I’ll be involved in that decision too, but they have a very big market share.”
Another question centered around Sarandos specifically, with a reporter asking whether the Netflix chief made “any guarantees” about the merger if it goes through. Trump confirmed news that The Hollywood Reporter reported earlier Sunday, that he’d met with Sarandos ahead of the latter winning the WB deal.
“No, no, not at all,” Trump said. “He came up. He was in the Oval Office last week. I have a lot of respect for him. He’s a great, he’s a great person. But he’s done one of the greatest jobs in the history of movies and other things. He’s got a lot of interesting things happening aside from what you’re talking about, but it is a big market share. There’s no question about it. It could be a problem.”
The companies revealed the acquisition early Friday, The streaming giant’s proposal includes a $5.8 billion breakup fee and promises to maintain Warner Bros. current operations, “including theatrical releases.” The deal will have to undergo heavy regulatory scrutiny.
“I know some of you are surprised that we’re making this acquisition, and I certainly understand why. Over the years, we have been known to be builders, not buyers,” Sarandos told Wall Street analysts on a conference call Friday morning. “We already have incredible shows and movies and a great business model, and it’s working for talent, it’s working for consumers and it’s working for shareholders, but this is a rare opportunity and it’s going to help us achieve our mission to entertain the world and to bring people together through great stories.”
Sarandos noted that Netflix started off as a DVD-by-mail company, evolving to a streaming service before adding original content and live program ing.
“In a world where people have so many choices, more choices than ever how to spend their time, we can’t stand still,” he added. “We need to keep innovating and investing in stories that matter most to audiences, and that’s what this deal is all about.”
Many in Hollywood are wary of the deal, including theater owners. Cinema United said in a statement that “the proposed acquisition of Warner Bros. by Netflix poses an unprecedented threat to the global exhibition business,” while the Directors Guild of America said that the proposed deal raises “significant concerns.”
Alex Weprin contributed to this report.
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