Trump Steers Clear of Warner Bros. Corporate Clash
President Donald Trump stated his intention to remain uninvolved in the dispute between Netflix Inc. and Paramount Skydance Corp. regarding Warner Bros. Discovery Inc., indicating that he would defer the issue to the US Justice Department. “I haven’t been involved,” Trump stated in an interview. “I’ve been called by both sides.” There are two sides to this matter, yet I have concluded that my involvement is unwarranted. The Justice Department will manage the situation.” The conflict between Netflix and Paramount regarding Warner Bros, a legendary Hollywood studio, has intensified and attracted attention from Washington. Whichever bidder prevails, this situation presents a significant antitrust challenge for the Trump administration.
The president’s comments Wednesday signify a departure from previous statements in which he indicated that he would take a personal role in reviewing any merger involving Warner Bros. Trump previously indicated his opposition to any deal for Warner Bros. that did not involve new leadership at CNN, the cable news network he has consistently criticized for its coverage of him and his administration, presenting a potential challenge for Netflix’s bid. However, the president has also voiced dissatisfaction with the owners of Paramount Skydance. Warner Bros. has turned down several proposals from Paramount, choosing instead to pursue a $82.7 billion merger with Netflix.
Executives from Netflix and Warner Bros. appeared before Congress earlier this week to present their plans, addressing concerns from senators who were skeptical about the merger’s effects on streaming consumers and Hollywood workers. Allies of Trump have expressed apprehensions regarding Netflix’s ability to move forward, denouncing the streaming behemoth for allegedly endorsing “woke” content. “There’s a theory that one of the companies is too big and it shouldn’t be allowed to do it, and the other company is saying something else,” Trump told when asked about the competing bids. “They’re beating the hell out of each other — and there’ll be a winner,” he stated.
Trump’s own ties have attracted attention and raised concerns that the president might attempt to influence the outcome. Paramount is led by David Ellison, whose father — Oracle Corp. Chairman Larry Ellison — supports Trump. Additionally, the president’s son-in-law, Jared Kushner, played a role in facilitating financing for their bid before his private equity firm exited the takeover battle.
