The Trump administration views the proposed $72 billion deal for Netflix to acquire Warner Bros. Discovery's film and streaming assets with "heavy skepticism," a senior administration official told CNBC's Eamon Javers on Friday morning.
Netflix said Friday that it would acquire Warner Bros.'s film studio and streaming service, HBO Max. The deal is subject to regulatory approval.
Paramount Skydance had made multiple bids for the entirety of WBD, as opposed to a subset of the company's assets. Paramount's final bid, which was received on Thursday evening, was for $30 per share, all cash, CNBC previously reported.
Comcast also made a bid for WBD's film and streaming properties.
The New York Post on Thursday reported that, "Paramount Skydance chief David Ellison met with Trump officials and key lawmakers in Washington DC on Wednesday to press his case against Warner Bros. Discovery's potential selection of Netflix as its merger partner."
Ellison's billionaire father, Larry Ellison, is close to President Donald Trump.
On Thursday, The Wall Street Journal reported that Paramount, in a letter to lawyers for WBD, had warned that a sale to Netflix likely would "never close" because of regulatory challenges in the United States and overseas.
"Acquiring Warner's streaming and studio assets 'will entrench and extend Netflix's global dominance in a matter not allowed by domestic or foreign competition laws,' Paramount's lawyers wrote," the Journal reported.
Netflix's purchase of WBD's assets is expected to close, if approved by regulators, after WBD completes its previously planned spinout of Discovery Global, which is currently planned to occur in the third quarter of 2026.
Discovery Global would include the CNN, TNT Sports and Discover channels.
A Securities and Exchange Commission filing shows that Netflix agreed to pay a $5.8 billion reverse break-up fee if the deal does not receive approval.
Correction: A senior administration official said the Trump administration views the deal with 'heavy skepticism.' A previous version mischaracterized the official.
Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC. Versant would become the new parent company of CNBC upon Comcast's planned spinoff of Versant.
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