Netflix (NASDAQ:NFLX) shares climbed 1.6% on Thursday morning after U.S. President Donald Trump signalled he would not take part in the dispute involving Netflix and Paramount Skydance over Warner Bros Discovery (NASDAQ:WBD).
The streaming company’s stock advanced following remarks Trump made to NBC News indicating he has “decided I shouldn’t be involved” in the ongoing review of the proposed media deal. His position represents a shift from comments made in December, when he suggested he would “be involved in that decision” regarding Netflix’s planned acquisition.
“The Justice Department will handle it,” Trump said during the interview, indicating that regulatory scrutiny of Netflix’s $82.7 billion bid for Warner Bros Discovery will remain in the hands of federal antitrust authorities. The U.S. Department of Justice is currently assessing both Netflix’s proposal and a rival hostile takeover attempt by Paramount Skydance.
Trump also acknowledged the intense rivalry between the bidders, stating, “There’s a theory that one of the companies is too big and it shouldn’t be allowed to do it, and the other company is saying something else. They’re beating the hell out of each other – and there’ll be a winner.”