Trump Officials Warned Netflix Its Warner Bros. Deal Was Doomed
WHO:
Deadline - Netflix co-CEOs Ted Sarandos and Greg Peters addressed staff at a town hall.
Deadline - Netflix replaced Chief Content Officer Bela Bajaria with Peter Rice.
ComingSoon - John Malone said the Trump administration warned Netflix about its proposed Warner Bros. Discovery bid.
Deadline - John Malone, described as a media mogul, said the Trump administration informed Netflix that its proposed acquisition of Warner Bros. Discovery would be blocked.
Deadline - Netflix and Paramount were involved in the bidding for Warner Bros. Discovery.
WHAT:
Deadline - Netflix laid off 1,000 employees and changed its executive ranks.
Deadline - Netflix reported mixed financial results in its Q3 earnings call.
ComingSoon - The Trump administration warned Netflix that its bid for Warner Bros. Discovery would not receive regulatory approval.
Deadline - Malone said the administration told Netflix it had “No chance” of getting regulatory approval for the merger.
Deadline - Netflix dropped out of the bidding after the administration’s warning, clearing the way for Paramount’s purchase of Warner Bros. Discovery.
Deadline - Malone said, “They were right…”
WHERE:
Deadline - Malone made his remarks at the Paley Center for Media’s International Council Summit.
WHEN:
Deadline - The town hall took place Wednesday, one day after Netflix’s Q3 earnings call.
Deadline - Malone made his remarks on Wednesday.
WHY:
Deadline - The Trump administration’s stated position that Netflix’s proposed acquisition would be blocked preceded Netflix’s withdrawal from the bidding.
(UPDATED October 22, 2026 01:22 UTC)
Netflix has laid off 1,000 employees, reshuffled its executive ranks and dropped out of the bidding for Warner Bros. Discovery, clearing the way for Paramount to buy the company. The changes came amid mixed financial results, as co-CEOs Ted Sarandos and Greg Peters addressed staff at a town hall held one day after Netflix’s quarterly earnings call. Netflix also replaced Chief Content Officer Bela Bajaria with Peter Rice. Media mogul John Malone said the Trump administration told Netflix its proposed acquisition of Warner Bros. Discovery had “No chance” of receiving regulatory approval. Malone made the remarks at the Paley Center for Media’s International Council Summit. He said Netflix withdrew after receiving the warning, and added, “They were right…” Paramount and Netflix had both been involved in the bidding.
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(UPDATED October 21, 2026 20:24 UTC)
Media mogul John Malone says the Trump administration warned Netflix that its proposed purchase of Warner Bros. Discovery would not win regulatory approval. Speaking at the Paley Center for Media’s International Council Summit, Malone said officials told Netflix it had “No chance” of getting the merger approved. Netflix and Paramount were both involved in the bidding for Warner Bros. Discovery. After receiving the administration’s warning, Netflix dropped out of the process, according to Malone’s account. That withdrawal cleared the way for Paramount to purchase Warner Bros. Discovery. Malone indicated that the administration’s position came before Netflix’s decision to leave the bidding. He also said, “They were right…” His remarks describe how a warning about regulatory approval shaped the contest between the two bidders and left Paramount positioned to complete the acquisition.