Netflix's (NASDAQ:NFLX) decision to walk away from its bid for Warner Bros. Discovery may have been less about price and more about politics, according to media mogul John Malone.

Malone: Trump Administration Wouldn't Approve Netflix Deal

The recently approved merger between Paramount Skydance (NYSE:SKYD) and Warner Bros. Discovery might never have happened without interference from the Trump administration, Malone suggested.

Malone, who is also a former shareholder in Warner Bros. Discovery, said Netflix was told its acquisition would be blocked.

"They were right on the verge of pressing on, and were told by the administration that they had no chance of getting regulatory approval from the U.S. I think that was really the spike that got 'em," Malone said at the Paley Center for Media's International Council Summit Wednesday, as reported by Deadline.

Malone alleges that once that message was delivered, Netflix dropped out of the bidding and cleared the way for Paramount to emerge as the winning bidder. Netflix co-CEO Ted Sarandos had previously visited the White House to meet with the Trump administration in February before the company ended its bid. Sarandos said at the time that President Donald Trump was "completely neutral" on the proposed merger, and that Netflix dropped out because Paramount's offer was better.

MarketDash reached out to Netflix for comment.

"There was mixed opinion among us (about Netflix dropping out) on the Warner Bros. Discovery side. We would have seen, and would liked to have seen, the different outcome."

Malone called the final offer from Paramount for WBD shareholders "more than sufficient."

Politics Clouded Deal From the Start

Malone's latest comments come after the merger has been completed, but they may add to the dark cloud hanging over the new company and the allegations that politics played too big a role in the deal.

The Justice Department approved the merger, while some state attorneys general challenged it before reaching a settlement earlier this year.

As news of Warner Bros. Discovery coming up for bid spread, the Trump administration may have made its preference clear from the start.

"Who owns Warner Bros. Discovery is every important to the administration," a senior Trump administration official told the New York Post. "The Warner board needs to think very seriously not just on the price competition but which player in the suitor pool has been successful getting a deal done."

While most investors can read between the lines and realize that likely meant Paramount Skydance, given its recent merger approved by the Trump administration, the senior official actually spelled it out.

"And that points to the Ellisons," the senior administration official said, referring to Paramount Skydance CEO David Ellison and his father, Oracle co-founder and longtime Trump ally Larry Ellison.

"Warner really needs to think really hard about the odds of success getting the deal cleared with players outside of Paramount Skydance."

Those comments appear to line up with what Malone said. Any bidders outside of Paramount Skydance were told they would not get the deal approved.

The merger also faced several lawsuits, including one from Paramount Skydance shareholder Paul Robbins, who alleged a side deal between Trump and the Ellisons to get the deal approved.

Trump offered his praise for the deal once it was completed.

"I'm happy about that. That's great," Trump told reporters at the White House, as reported by Variety.

For a merger that upset members of Congress and attorneys general over the president's relationship with the deal's major backers, this may not be the glowing review Chairman and CEO David Ellison is hoping for.

"It's gonna be a great company. They're terrific people, and it's gonna be a great company. That's a great merger. I'm glad they let it go," Trump added.

Malone's comments are likely too late to draw more legal attention or challenges. They also come as shares of Paramount Skydance are down 22.7% over the last month.

Shares now trade at $7.81 versus their opening price of $9.77 on Oct. 6 under the new ticker and move to the New York Stock Exchange from the Nasdaq.