Netflix's co-CEO says Trump has one big question about the Warner Bros. sale
Business Insider
February 19, 2026
AI-Generated Deep Dive Summary
Netflix co-CEO Ted Sarandos revealed that his discussions with President Donald Trump regarding the potential acquisition of Warner Bros. have centered on job creation and maintaining production in Hollywood. Sarandos emphasized that Trump's focus is on bringing jobs back to the U.S., particularly in California, where the film industry has been shifting production to other locations like Atlanta and the UK due to tax incentives. This decline has led to a 21% drop in on-location shooting days in Los Angeles in recent years, hurting local creative communities.
Sarandos noted that Trump's interest is purely business-focused, as the Department of Justice evaluates Netflix's potential purchase of Warner Bros. The co-CEO clarified that there have been no requests for political favors or concessions during their conversations. Instead, the talks have focused on how to sustain jobs and keep the production industry healthy in America.
Netflix is competing with Paramount Skydance for Warner Bros., with both companies presenting different approaches. Paramount has proposed $6 billion in synergies, likely including layoffs, while Netflix aims to cut costs more modestly—$2 billion to $3 billion—and promises fewer job losses. The Warner Bros. board appears sympathetic to Netflix's argument, warning shareholders about potential employee exodus if Paramount wins the bid.
While Trump initially expressed concerns about Netflix's market dominance, he later stated he would defer to the Department of Justice on the antitrust review. Sarandos reiterated that no political favors were discussed, despite Netflix being perceived as a left-leaning company due to its CEO's Democratic donations and past Capitol Hill testimony.
This matter is significant for readers interested in business because it highlights the intersection of corporate strategy, antitrust regulations, and political influence. The
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Originally published on Business Insider on 2/19/2026