Netflix Faces Political Pressure as DOJ Reviews Warner Deal

President Donald Trump called on Netflix (NASDAQ: NFLX) to remove board member Susan Rice, saying the company should “pay the consequences” if it does not, as the U.S. Department of Justice reviews the company’s proposed acquisition of Warner Bros. Discovery (NASDAQ: WBD).

In a post on Truth Social late Saturday, Trump criticized Rice, describing her as politically aligned with Democratic administrations and questioning her role at the company. Rice previously served as domestic policy adviser to President Joe Biden and held senior foreign policy positions during the Obama administration.

Rice said during a podcast appearance last week that corporations and other institutions that “bent the knee” to Trump could face repercussions if Democrats regain power in November’s midterm elections. She told former U.S. attorney Preet Bharara that companies should not expect leniency from future Democratic leadership if they supported policies she characterized as contrary to prior standards.

Rice was a member of Netflix’s board from 2018 to 2021 and rejoined in 2023 following her departure from the Biden administration.A Netflix spokesperson declined to comment on Trump’s remarks. The White House did not immediately respond to a request for comment.

Trump’s comments come as Netflix seeks to acquire Warner Bros. Discovery in a transaction valued at $72 billion. The proposed deal would exclude Warner’s cable networks, including CNN. The Department of Justice is reviewing the transaction for potential antitrust concerns. Earlier this month, Trump told NBC News that the Justice Department would “handle” the review process and that he would not be directly involved, after previously suggesting he might play a role.

According to reports from The Wall Street Journal and Bloomberg, the Justice Department is examining whether the proposed acquisition could reduce competition, including its potential impact on creative talent markets and negotiations with independent content producers. The agency is also reviewing how Netflix’s prior acquisitions have affected industry competition.

Steve Sunshine, Netflix’s outside counsel and head of the global antitrust group at Skadden, Arps, Slate, Meagher & Flom, said the firm has not received notice of a monopolization investigation. Netflix Chief Legal Officer David Hyman said the company operates in a highly competitive market and does not hold monopoly power or engage in exclusionary conduct. He added that Netflix would cooperate with regulators.

Co-CEO Ted Sarandos said last month that he believes the transaction will receive regulatory approval, describing the deal as beneficial to consumers, workers and innovation. Separately, Paramount Skydance (NASDAQ: PSKY) has launched a hostile bid for all of Warner Bros. Discovery, offering shareholders $30 per share in cash.

About Netflix

Founded in 1997 and headquartered in Los Gatos, California, Netflix (NASDAQ: NFLX) is a global streaming entertainment company offering subscription-based access to television series, films and original programming. The company operates in more than 190 countries and produces content across multiple genres and languages.

At the time of publishing, Stocks.News holds positions in Netflix as mentioned in the article.