Trump’s Netflix Ultimatum: Fire Susan Rice as Warner Bros. Discovery Merger Faces DOJ Gauntlet

Former President Donald Trump has issued a stark demand to streaming giant Netflix: dismiss board member Susan Rice or “pay the consequences.” This ultimatum arrives as Netflix navigates a complex $72 billion bid for Warner Bros. Discovery, a deal currently under intense review by the Department of Justice. The controversy stems from Rice’s recent comments on corporate accountability, igniting a political firestorm that now casts a shadow over a major industry acquisition.

The Spark: Susan Rice’s Warning to Corporations

The catalyst for Trump’s demand was a podcast appearance last week by Susan Rice, a seasoned political figure who previously served as President Joe Biden’s domestic policy chief and held top foreign policy posts under President Barack Obama. Rice, who rejoined Netflix’s board in 2023, argued that “it is not going to end well” for corporations, news organizations, and law firms that “bent the knee” to Trump. She posited that such deference is unpopular and predicted a political “swing in the other direction.”

Speaking to Preet Bharara, a former U.S. attorney, Rice warned, “They’re going to be held accountable by those who come in opposition to Trump and win at the ballot box.” She further cautioned that if corporations expect Democrats to “play by the old rules” upon regaining power, they are mistaken, implying a reckoning for those who compromised principles or skirted laws.

Trump’s Swift Retort and Political Labeling

In a Truth Social post on Saturday, Trump swiftly condemned Rice, labeling her “purely a political hack” with “no talent or skills.” He emphatically declared, “HER POWER IS GONE, AND WILL NEVER BE BACK.” The former president’s comments were amplified by far-right activist and ally Laura Loomer, who shared a screenshot of Rice’s remarks, deeming them “anti-American” and urging Trump to “kill the Netflix-Warner Bros. merger now.” Loomer also tagged Federal Communications Commission Chairman Brendan Carr in her post, underscoring the political pressure.

Netflix-WBD Merger Faces DOJ Gauntlet

Trump’s intervention adds a new layer of complexity to Netflix’s proposed acquisition of Warner Bros. Discovery. The Department of Justice is actively reviewing the $72 billion deal, which notably excludes WBD’s cable networks, including CNN. The DOJ’s investigation centers on potential harm to competition, examining how Netflix’s previous acquisitions have impacted the market for creative talent and whether the streaming giant employs anticompetitive tactics in negotiations with independent content creators.

Competing Bids and Regulatory Concerns

Adding to the intricate landscape, Paramount Skydance has launched a hostile takeover bid for all of WBD, offering shareholders $30 per share in an all-cash deal. While Trump had previously indicated he would be involved in the DOJ’s review, he recently told NBC News that the Department of Justice would “handle” the deal independently.

Netflix Defends Its Market Position

Netflix’s legal team has pushed back against suggestions of monopolistic behavior. Steve Sunshine, Netflix’s outside counsel and head of the global antitrust group at Skadden, Arps, Slate, Meagher & Flom, stated that his firm had received no notice of a monopolization investigation from the DOJ. Netflix’s Chief Legal Officer, David Hyman, reiterated that the company operates in an “extremely competitive market.” “Any claim that it is a monopolist, or seeking to monopolize, is unfounded,” Hyman asserted, adding, “We neither hold monopoly power nor engage in exclusionary conduct and we’ll gladly cooperate, as we always do, with regulators on any concerns they may have.”

Netflix co-CEO Ted Sarandos expressed confidence last month in securing regulatory approval, emphasizing that the deal is “pro-consumer… pro-innovation, pro-worker.” The intertwining of high-stakes corporate mergers with volatile political rhetoric creates an unprecedented challenge for Netflix, highlighting the increasing entanglement of business and politics in the current climate.

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