Trump Urges Netflix to Dismiss Susan Rice Amid DOJ Warner Deal Investigation

• Rice, who rejoined Netflix's board in 2023, warned that corporations who 'bent the knee' to Trump would be held accountable by future opposition administrations and should not expect forgiveness for violated principles and policies
• Netflix is pursuing a $72 billion acquisition of Warner Bros. Discovery (excluding cable networks like CNN), with the DOJ investigating potential anticompetitive effects on creative talent and content creator negotiations
• Trump previously stated he would stay out of the DOJ's deal review but is now publicly threatening Netflix, creating potential concerns about political interference in the regulatory approval process

Summary

President Donald Trump publicly demanded Netflix fire board member Susan Rice or face unspecified "consequences" amid the Department of Justice's review of Netflix's proposed acquisition of Warner Bros. Discovery. Trump labeled Rice a "political hack" in a social media post following her podcast comments warning that corporations deferring to Trump would face accountability when Democrats regain power.

Key Developments:

Netflix is pursuing a $72 billion acquisition of Warner Bros. Discovery (WBD), excluding cable networks like CNN. The DOJ is conducting a comprehensive review examining potential anti-competitive impacts, including:

• Effects on competition for creative talent
• Potential anticompetitive tactics in negotiations with independent content creators
• Overall market competition concerns

Key Figures:

Susan Rice previously served on Netflix's board from 2018-2021 and rejoined in 2023 after leaving the Biden administration. She recently stated corporations that "bent the knee" to Trump would be "held accountable" and warned they shouldn't expect Democrats to "play by the old rules" when returning to power.

Market Implications:

The political pressure adds uncertainty to an already scrutinized mega-deal in the streaming sector. Netflix co-CEO Ted Sarandos expressed confidence in securing regulatory approval, describing the acquisition as "pro-consumer, pro-innovation, pro-worker." Trump previously stated he would let the DOJ "handle" the deal independently after initially suggesting involvement.

The situation highlights the intersection of corporate governance, political influence, and regulatory oversight in major M&A transactions, creating potential volatility for both Netflix (NFLX) and Warner Bros. Discovery (WBD) shareholders.