So here's a fun corporate drama that's spilling over into politics: Netflix Inc. (NFLX) CEO Ted Sarandos is reportedly heading to the White House for meetings on Thursday. This comes right in the middle of a heated bidding war for Warner Bros. Discovery (WBD), and just days after Sarandos tried to downplay the whole thing by saying, "This is a business deal. It's not a political deal."

Sometimes the market has other ideas.

The meetings, according to reports, are likely to center on Netflix's bid for Warner Bros. and a specific demand from President Donald Trump. The President has reportedly told the streaming giant to remove board member Susan Rice, a former advisor in the Biden administration. It's not clear if Sarandos will actually meet with Trump during this visit, but the two did have a private meeting back in November. So, you know, they're acquainted.

While Sarandos is in Washington, the actual dealmaking is getting more expensive. Paramount Skydance Corp (PSKY) just upped its offer for Warner Bros. Discovery to $31 per share in cash. That's a bump from its earlier $30-per-share bid, which valued the company at about $108.4 billion. The new proposal also includes some hefty fees: a $7 billion regulatory termination fee and a $2.8 billion breakup fee that Warner Bros. would have to pay Netflix if it walks away from their current agreement.

Warner Bros.'s board said Paramount's revised bid could potentially qualify as a "superior proposal" compared to what's on the table from Netflix. The company says it will now keep talking to Paramount to evaluate the offer. If it does meet that "superior" threshold, Netflix would then get four business days to come back with a better deal of its own.

Netflix didn't immediately respond to a request for comment on the latest developments.

The Politics of the Deal

Sarandos told BBC Radio 4 that this is just business, not politics. But the political pressure is very real. The company is already under scrutiny from the U.S. Department of Justice's Antitrust Division over its market power and how it does deals.

On Tuesday, Republican attorneys general from 11 states piled on, asking the DOJ to take a very close look at Netflix's proposed acquisition. Their argument is that letting Netflix get even bigger could threaten U.S. leadership in the film industry.

And here's where it gets even more interesting. The guy leading the charge for Paramount, CEO David Ellison, has some notable political connections. His father is Oracle (ORCL) co-founder Larry Ellison, who is known to be close with Trump. David Ellison also attended Trump's State of the Union address this year as a guest of Senator Lindsey Graham (R-S.C.).

So, on one side you have Netflix, which is being pressured by the White House over a board member and facing antitrust concerns. On the other side, you have a competing bidder whose leadership has direct ties to the President. It's hard to call that "not political."

Despite all the intrigue, some investors think Netflix will be just fine. Investor Gary Black predicted that Netflix would "emerge as victor" in this tussle. He also suggested that even if Paramount wins the bid, Netflix shares could rebound to around $100.

Market data shows Netflix shares have declined 9.11% year-to-date. On Wednesday, however, the stock closed 5.98% higher at $82.70.