Report: Netflix withdrew Warner Bros. Discovery bid after White House signal

Netflix exited after reported regulatory warning

John Malone said Netflix was close to pressing its case for acquiring Warner Bros. Discovery when the Trump administration informed the company that it had “no chance” of receiving U.S. regulatory approval. The reported warning prompted Netflix to withdraw, clearing the way for Paramount’s competing transaction.

Malone, a major Warner Bros. Discovery shareholder, made the claim on Wednesday at the Paley Center for Media’s International Council Summit in New York. He did not provide details about how the administration communicated with Netflix, and the evidence supplied for this article contains no independent White House confirmation of his account.

White House meeting preceded the withdrawal

Netflix co-CEO Ted Sarandos met with administration officials at the White House in late February and abandoned the bid later that day. Under the negotiations, Netflix still had four days to respond to Paramount’s latest proposal.

The withdrawal left Paramount’s approximately $110 billion leveraged buyout as the resulting transaction. Paramount offered Warner Bros. Discovery shareholders $31 per share and financing commitments, according to the reporting.

Netflix and Warner Bros. Discovery offered different explanations

Sarandos later said President Donald Trump was “completely neutral” on the transaction. He attributed Netflix’s withdrawal to Warner Bros. Discovery’s conclusion that Paramount’s offer was superior and described the White House meeting as routine.

Malone, however, said the reported regulatory warning was decisive. He also said reactions among Warner Bros. Discovery stakeholders were divided: some preferred the possibility of a Netflix combination and its different outcome, while others viewed Paramount’s final terms as sufficient for shareholders.

Regulatory review reached a later conclusion

The Justice Department announced in June that it would not challenge Paramount’s transaction. In explaining that decision, the antitrust division said alternatives such as YouTube, TikTok and social media competed broadly for consumer attention but did not appear to be competitive substitutes in the specific transaction under established antitrust precedents.

That later enforcement position did not confirm Malone’s account of the earlier White House communication. His description concerns what Netflix was reportedly told during the bidding process; the Justice Department’s announcement concerned its later decision not to challenge the completed transaction.

Reported signal remains unconfirmed

The central account is attributable to Malone, but the supplied evidence does not include a White House statement confirming that Netflix was told its bid faced no chance of approval. The precise channel, wording and decision-making authority behind the reported warning therefore remain unresolved.