Trump weighs In-and Profits From-warner Bros. Finding Takeover Battle
The fate of Warner Bros. Discovery hangs in the balance as a bidding war between Netflix and Paramount Skydance intensifies,with former President Donald Trump positioned as a possibly decisive,and uniquely interested,player. The escalating contest, valued at upwards of $171 billion combined, has drawn trump into the fray, raising concerns about the politicization of a major corporate acquisition.
The current drama began on Friday with Netflix’s declaration of an $83 billion offer for Warner Bros. Discovery. However, the following day, Paramount Skydance countered with a roughly $108 billion hostile takeover bid, backed in part by Jared Kushner, Trump’s son-in-law.When questioned on Monday about his stance, Trump remained noncommittal, stating, “None of them are particularly great friends of mine.”
this apparent neutrality belies a complex web of relationships and prior engagements. Netflix CEO Ted Sarandos reportedly visited the White House last month to discuss Warner Bros.’ prospects,a clear attempt to court the former president’s favor. Prior to Netflix’s bid, Paramount Skydance was considered the frontrunner. Its CEO, david Ellison, is the son of software magnate Larry Ellison-a prominent Trump ally-and has publicly hinted at significant changes to CNN, owned by Warner bros., should the takeover succeed.
Adding another layer of complexity, Paramount Skydance’s chief legal officer, Makan Delrahim, previously served as the head of antitrust law for the Justice Department during Trump’s first term. The Ellisons’ relationship with Trump is reportedly close enough that, according to sources, Trump once requested Larry Ellison to greenlight a fourth installment of Rush Hour, nearly two decades after the third film’s release-a request Paramount Skydance reportedly fulfilled.
The Netflix-Warner Bros.deal is expected to face over a year of regulatory scrutiny. While presidents do not have unilateral authority over corporate acquisitions, the perception that Trump coudl influence the outcome is proving significant. Trump himself asserted on Sunday, “I’ll be involved in that decision.” Craig Aaron, president of the media watchdog Free Press, noted that he has “never before seen ‘personality-based wooing’ of any president on this scale,” adding that the current dynamic feels like a competition to “Impress me-nobody’s my friend yet, but they could be.” Wall Street analysis, Aaron said, increasingly centers on “Who does Trump like best?”
Mega-businesses typically structure deals to align with existing regulations, rather than a president’s personal preferences.The Justice Department and the Federal Trade Commission independently review most telecommunications deals,though their influence is not absolute. Trump experienced this limitation during his first term, when his Justice Department attempted to block AT&T and DirecTV’s 2017 acquisition of Time Warner, a move widely believed to be fueled by his feud with CNN. Despite Trump’s opposition, a federal appeals judge ultimately allowed the merger to proceed in 2019.
The current situation differs. Paramount and Skydance completed their merger in August under the oversight of Trump-appointed regulators, and as a condition of approval, agreed to dismantle diversity, equity, and inclusion (DEI) programs and establish an ombudsman to monitor content for ideological bias. While the Federal Communications Commission (FCC) will not be involved in reviewing the Netflix-Warner Bros. deal-as Netflix is not seeking to acquire Warner Bros.’ cable networks-the Justice Department and FTC retain the power to impose conditions on the agreement.The traditional regulatory process
HBO Max debut reveals the quirks of ushering old shows into a new era, David Sims writes.
Play our daily crossword.
Explore all of our newsletters here.
Rafaela Jinich contributed to this newsletter.
When you buy a book using a link in this newsletter, we receive a commission. Thank you for supporting The Atlantic.