Netflix wants President Donald Trump’s stamp of approval as it maneuvers to buy Warner Bros. Discovery.
Now, Trump has a demand for Netflix: unseat board member Susan Rice.
In normal times, we would all be marveling at the spectacle of the US president telling a company in the midst of a merger fight (Paramount also wants to buy Warner Bros. Discovery) how to structure its board. During Trump 2.0, though, this has become standard stuff. Trump routinely tells companies to fire someone he doesn’t like or do something he does like.
That doesn’t mean Trump always gets what he wants. The demands alone, however, are an extraordinary use of power. We should make sure we don’t become inured to it.
Trump’s Truth Social post is a reminder that the future of Warner Bros. Discovery will run through the White House, no matter what Trump says at any given moment. (Refresher: In December, Trump said, “I’ll be involved” in the fight between Netflix and Paramount. Earlier this month, he announced that “I’ve decided I shouldn’t be involved.” Now he’s telling Netflix it will “pay the consequences” if it doesn’t fire Rice, which sure seems like he’s involved again.)
Trump himself doesn’t have the authority to stop Warner Bros. Discovery from selling itself to Netflix or Paramount, which is controlled by David Ellison and his father, the prominent Trump supporter, Larry Ellison. He can, however, instruct Attorney General Pam Bondi to sue to stop a deal on antitrust grounds.
Modern presidents have traditionally assumed an arm’s-length distance from federal law enforcement. And it’s entirely possible that any other president’s Department of Justice would also look into an antitrust case against Netflix, given its enormous market power.
Trump, however, has made it clear that he expects Bondi to act on his behalf. So if he doesn’t want Netflix to buy Warner Bros. Discovery, he can certainly make it more difficult for them.
Which makes it puzzling that Rice, who held senior roles in the Clinton, Obama, and Biden administrations, would sound off on a podcast, announcing that “elites” and “corporate interests” who accommodated Trump would one day “be held accountable by those who come in opposition to Trump and win at the ballot box.“
This wasn’t a mere gaffe or misstatement. She went on at length. It was, regardless of how she intended it, a provocation aimed at the Trump White House — at the exact moment the company she’s supposed to help govern is seeking Trump’s approval.
I’ve asked Netflix for comment on Rice’s comments and Trump’s response.
We should also note that Trump’s most consistent trait is his inconsistency and that he frequently reverses himself. Last summer, for instance, he announced that Intel CEO Lip-Bu Tan was “highly CONFLICTED” and must resign. Days later, Trump met with Tan and described him as a “success.” Weeks after that, the US government acquired 10% of Intel.
Nor does Trump always follow through. Last fall, he demanded that Microsoft fire Lisa Monaco, an executive who had also worked for Clinton, Obama, and Biden. Monaco still works for Microsoft.
However, just because we don’t know how serious Trump is about pushing Rice out of Netflix — or how his administration will ultimately rule on the Netflix/Paramount race — doesn’t mean we should shrug this off.
We’re in a place where the president routinely tells companies how to run their businesses and threatens them if they don’t comply. If we get used to that, we shouldn’t be surprised when future presidents decide they can do it, too.
Read the original article on Business Insider
The post Trump’s Netflix threat is a warning to every CEO appeared first on Business Insider.
