Ted Went All That Way For Nuthin’: Netflix Lost WB While Sarandos Was Pitching Deal At The White House

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Ted Sarandos‘s White House visit today proved an exercise in real-time realpolitik for the Netflix co-CEO as Paramount won the multibillion-dollar bid for Warner Bros Discovery.

Usually Sarandos is such a good pitch man that he can pretty much sell ice to polar bears, but not Thursday and not at the White House of David Ellison‘s “good friend” Donald Trump.

Caught between a rock and a MAGA place today in his long scheduled visit to chilly D.C., Sarandos’s efforts to win over Team Trump were overshadowed by fast-moving events back in L.A. as Paramount scored the pricey winning bid for WBD. In many ways, if you look at the timeline, it looks the fix was in even before Sarandos walked up to the security checkpoint at the Executive Mansion this afternoon.

Just as Sarandos was sitting down for meetings with White House staffers and Department of Justice officials around 1 p.m. PT, his good buddy David Zaslav and the WBD board revealed that Paramount’s latest $31-per-share offer was now a “company superior proposal” and essentially in the pole position for the company.

Giving Netflix four days to react with what many assumed would be a raising of its $83 billion bid for the studio and streaming assets, that missive landed in most people’s inboxes at 1:18 p.m. PT. Less than 90 minutes later, Netflix sent out its out note at about 2:45 p.m., saying it was out of the running. “We’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive,” said a statement from Sarandos and co-CEO Greg Peters.

The shocking retreat was apparently signed off on by Sarandos while he was still at the White House, well-placed sources tell me. However, insiders at the streamer say he had exited the building by the time the release went out.

Though it is unclear what they are referring to, a Netflix spokesperson tonight said “as we told Deadline, this is inaccurate.”

Regardless, it was a rare knock back on the heels for Sarandos.

“I don’t know if it was pre-planned, but the timing was brutal,” an Oscar-winning producer said as the news spread around town. Tech offspring Ellison had succeeded in snagging his second iconic studio in less than two years even after it looked like lock was in, as were the WBD board votes for Netflix. “And so embarrassing for Ted, to be at the White House,” the producer added.

Unlike NYC Mayor Zohran Mamdani’s surprise trip to the Oval Office today, there was no face-to-face Thursday for Sarandos with Trump.

A chat between Trump and Sarandos, who have met many times and by all accounts have a decent professional relationship, certainly didn’t seem expected with more recent words from POTUS. Trump has been on the warpath since February 21 to get ex-UN Ambassador and Netflix board member Susan Rice. The former Obama and Biden staffer said on a podcast that Sarandos had tried to play down POTUS’ demand earlier this week, saying, “This is a business deal. It’s not a political deal.” Still, there was no escaping what Trump had said. “Yeah, he likes to do a lot of things on social media,” Sarandos admitted February 23 on BBC Radio.

Appearing on former U.S. Attorney Preet Bharara’s show recently, past and present Netflix board member Rice warned that it was “not going to end well” for corporations, media outlets, universities, law firms and others who acted in “their perceived, very narrow self-interest” and took “a knee to Trump.” That sent MAGA into a frenzy, with Laura Loomer demanding Rice be punished for her “anti-American” POV. “Rice is basically openly saying that Democrats will go after anyone and everyone who supported President Trump, embracing weaponized lawfare against potentially millions of Americans,” the Trump loyalist posted on February 21.

Within hours, Trump took to his Truth Social: “Netflix should fire racist, Trump Deranged Susan Rice, IMMEDIATELY, or pay the consequences.” What those consequences could be now that WBD is no longer in play remains to be seen.

Still, on the other side of things, after a weeklong re-engagement and subsequent extension between WBD and Paramount that saw some shine of what many saw as a fading deal, all the pieces fell into place for Ellison — at least for now.

The reality is, this isn’t really over.

Among the basic complications of merging the two companies, there still are regulatory hurdles, especially from blue state AGs like California’s Ron Bonta. There also will be some hard math for all as the sheer scale of the huge debt of close to $50 billion Paramount-WBD will be taking on moves to the fore. Then, as Sarandos and others warned and as we saw when Zaslav melded Warner Bros and Discovery together back in 2022, there will be layoffs. There will be a lot of layoffs as Paramount, which has TV muscle, packs on the studio and streaming pounds WBD carry and all the overlap that will result.

Also, having flown right back to L.A. after attending Trump’s record-long State of the Union speech Tuesday, Ellison could find himself back in D.C. sooner than expected.

A previously scheduled March 4 Senate subcommittee antitrust hearing could still go forward with Sen. Cory Booker (D-NJ) already calling for Ellison to come to D.C. to testify. The Paramount CEO had declined to appear before the senators earlier this year, even as Sarandos himself showed up for a MAGA roasting on February 4. Now, even with Sen. Mike Lee (R-UT) and other Republicans clearly on Team Paramount, Ellison might have to answer some questions in front of the cameras.

All of which is to say, as the bubbly flows tonight down at Paramount’s Melrose lot and the parking lot empties out at WBD’s Burbank HQ, this might be the beginning of the endgame, but it is not the end.

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