Netflix Faces Political Pressure as Trump Demands Board Shakeup

Netflix is learning that even $72 billion deals can't insulate companies from political crossfire. President Trump has demanded the streaming giant fire board member Susan Rice or "pay the consequences," escalating corporate governance into a high-stakes political battleground.

The threat comes as Netflix pursues its ambitious acquisition of Warner Bros. Discovery, with the Department of Justice already scrutinizing the deal for potential antitrust violations.

The Spark: Rice's Warning Shot

Trump's ire stems from Rice's recent podcast appearance, where she warned that corporations, news organizations, and law firms that "bent the knee" to Trump would face accountability when Democrats return to power.

"If these corporations think that Democrats, when they come back in power, are going to play by the old rules... I think they got another thing coming," Rice told former U.S. attorney Preet Bharara. She predicted a "swing in the other direction" that would leave Trump-accommodating companies "caught with more than their pants down."

Rice, who served in top roles under both Obama and Biden, rejoined Netflix's board in 2023 after her White House stint. Trump dismissed her as "purely a political hack" with "no talent or skills."

The Merger Gambit

Trump's attack isn't happening in a vacuum. Far-right activist Laura Loomer explicitly connected Rice's comments to Netflix's pending acquisition, urging Trump to "kill the Netflix-Warner Bros. merger now." Trump amplified this message, suggesting the board composition could influence regulatory approval.

The $72 billion deal, which excludes cable networks like CNN, faces competition from Paramount Skydance's hostile $30-per-share all-cash counteroffer. The DOJ is investigating whether Netflix's proposed acquisition could harm competition and examining the company's negotiations with independent content creators.

Netflix's legal team pushes back hard. "Any claim that it is a monopolist, or seeking to monopolize, is unfounded," said Chief Legal Officer David Hyman. The company operates in an "extremely competitive market," he argued.

Corporate Independence Under Fire

Netflix declined to comment on Trump's demands, leaving observers to wonder how far political pressure can reach into corporate boardrooms. The silence speaks volumes about the delicate balance companies must strike between business interests and political realities.

Co-CEO Ted Sarandos previously expressed confidence in securing regulatory approval because the deal is "pro-consumer... pro-innovation, pro-worker." But economic arguments may carry less weight when political calculations enter the equation.

The Broader Stakes

This confrontation represents more than a spat between a president and a streaming service. It's a test case for corporate independence in an era where board composition can become political ammunition.

Other companies are watching closely. If Trump's pressure succeeds, it could establish a precedent where political loyalty trumps professional qualifications in boardroom appointments.