Trump pressures Netflix to fire board member Susan Rice
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President Trump on Sunday threatened Netflix, suggesting it would "pay the consequences" if it didn't "immediately" fire Susan Rice, who served as ambassador to the United Nations under the Obama administration.
State of play: The comments come weeks after the president said he decided he shouldn't be involved in the deal to sell Warner Bros. Discovery and that "The Justice Department will handle it."
Why it matters: The president's words shouldn't have bearing over the approval of Netflix's merger agreement with WBD, but they can still influence WBD's sale process.
Zoom in: On Sunday, the president posted on Truth Social that Netflix should "fire racist, Trump Deranged Susan Rice, IMMEDIATELY, or pay the consequences."
- "She's got no talent or skills - Purely a political hack! HER POWER IS GONE, AND WILL NEVER BE BACK. How much is she being paid, and for what???" he added.
- The president's words came in response to a post from right-wing activist Laura Loomer, who criticized Rice and called Netflix an "anti-American" and "woke" company for having her on its board.
Catch up quick: Rice argued in a recent podcast that Democrats won't "forgive and forget" companies that "take a knee" to Trump.
- On Monday, Netflix co-CEO Ted Sarandos told the BBC, "This is a business deal. It's not a political deal."
- "This deal is run by the Department of Justice in the U.S., and regulators throughout Europe and around the world."
Between the lines: The president has been vocal throughout the bidding process for WBD.
- He previously suggested Netflix's combination with WBD would have "very big market share" and "could be a problem." He has also railed against Paramount, which too is vying for WBD, for allowing CBS News' "60 Minutes" to air programming he doesn't like.
- Last year, President Trump said he believes CNN — one of several cable networks owned by WBD — should be sold as part of any deal.
Reality check: The president doesn't have direct authority to kill media deals, except for those that could pose a national security threat.
- The DOJ, which was established as an independent regulatory agency, has the power to sue to block deals on behalf of the government, but it would need to convince an independent judge to rule in its favor.
Yes, but: President Trump's comments could still have an impact on investors and regulators who might feel pressure from the executive branch.
- Paramount has asked WBD investors to tender their shares to support its bid and Trump's comments could be seen as a barrier to Netflix's ability to close its deal.
- The DOJ's antitrust chief Gail Slater resigned earlier this month. Her announcement on social media did not provide a reason for her departure and did not mention President Trump.
What to watch: Paramount has argued that Netflix faces a steeper regulatory approval process than it does.
- Both firms need regulatory approval from many countries to complete a merger with WBD.
