Is Donald Trump trying to buy Warner Bros?
Just when Netflix thought it had pulled off the biggest deal in US entertainment history, here comes Paramount.
A bidding war has been raging for weeks over Warner Bros Discovery, the 102-year-old studio behind some of the most valuable franchises in the world. This includes Harry Potter, DC Comics, Game of Thrones, plus HBO, HBO Max, and a long list of cable networks.
On December 5, Netflix and Warner Bros Discovery agreed to a deal. Netflix would acquire Warner Bros studio and streaming businesses in a cash-and-stock transaction. The deal valued the assets at about US$82.7 billion.
Netflix already has more than 300 million subscribers in 190 countries. The deal would shift Netflix from a struggling streaming-first platform into a full-fledged global media powerhouse with major theatrical and franchise capabilities.
But that victory didn’t last long. Just days later, Paramount Skydance swooped in with a hostile, all-cash bid of US$108.4 billion. And this bid is for the entire company, not just the studios and streaming division. A hostile bid means Paramount is going straight to shareholders, bypassing Warner Bros board.
Paramount’s offer works out to US$30 per share, compared to Netflix’s US$27.75. They’re framing the deal as offering shareholders more money, faster closing, and fewer regulatory hurdles. That’s because their bid includes everything – the cable networks, the international channels, the lot, assets Netflix chose to exclude.
Paramount’s leadership also argues that Netflix’s plan may not survive regulatory scrutiny. They claim that combining Netflix’s dominant global streaming platform with Warner’s massive content library would create a media giant too big to slide under antitrust rules.
But that doesn’t mean a Paramount deal gets a free pass. Realistically, both offers raise major antitrust questions. Either merger would concentrate enormous power in one media company and almost certainly trigger aggressive federal review.
Meanwhile, Warner Bros is sticking by Netflix, at least for now, calling it the “most compelling strategic fit.” And they’re raising eyebrows about Paramount’s financing.
Paramount’s cash offer is supported by Affinity Partners, the investment firm run by Jared Kushner. Yes, that’s Donald Trump’s son-in-law, along with several Middle Eastern sovereign funds. The Ellison family, including Oracle co-founder Larry Ellison, is also backing the deal. Larry, who by the way is one of the richest men in the world, has well-documented ties to the Trump White House.
Donald Trump has been making some noise about the media space recently sooooo… there’s that.
Now, Netflix says it expected a counteroffer, but still feels confident about its bid. And so far, Warner Bros hasn’t given any indication it plans to switch sides.
And that’s the bottom line.
