Trump Stays Neutral in Netflix vs. Paramount Skydance Battle Over Warner Bros. Discovery Deal
President Donald Trump has decided to stay out of the battle between Netflix and Paramount Skydance over the Warner Bros. Discovery deal, stating that the Justice Department will handle it. Trump acknowledged the competing arguments between the bidders and noted the intense competition between the two sides, predicting that there will be a winner.
In December, Netflix announced a $72 billion deal to acquire Warner Bros. Discovery's film studio, HBO, and HBO Max, while Paramount Skydance pursued a competing bid for the broader company, including its cable networks. The Ellisons, who control Paramount Skydance, have a close relationship with Trump, which has drawn attention during the bidding war.
After WBD rejected Paramount's offers in favor of Netflix's proposal, Paramount escalated its efforts into a hostile takeover attempt, prompting Netflix to amend its bid to an all-cash offer to fend off rival interest. Trump had previously questioned the approval of the transaction between Netflix and Warner Bros. Discovery due to concerns about market concentration.
Trump's decision to step back from the deal could benefit Netflix, which already has a deal in place. The shareholders of Warner Bros. Discovery could vote on Netflix's proposed acquisition as early as March, pending approval from the Justice Department's antitrust division and regulators abroad.
Historically, presidents have rarely intervened directly in antitrust approvals, but Trump has been more vocal about major corporate deals. Trump's financial interest in Netflix and Warner Bros. Discovery has also been highlighted, as he purchased up to $2 million worth of bonds from the companies following Netflix's deal announcement in January. The White House has stated that there are no conflicts of interest between Trump's role as president and his personal investments.