Donald Trump has been urged to distance himself from the blockbuster bidding war for Warner Bros Discovery that has taken Hollywood by storm.
Paramount Skydance this week gatecrashed Netflix’s £62billion takeover of the historic studios behind films from Citizen Kane and Casablanca to Batman and the Harry Potter series with an £81billion counteroffer of its own.
The rival offer was made public after billionaire Trump ally Larry Ellison – father of Paramount boss David Ellison – called the President and told him the Netflix deal would hurt competition.
Paramount’s bid is backed by Affinity Partners, an investment firm run by Trump’s son-in-law Jared Kushner.
Three Gulf sovereign wealth funds – Saudi Arabia’s Public Investment Fund, Abu Dhabi’s L’imad Holding Company, and the Qatar Investment Authority – are also helping finance the Paramount offer.
Trump has so far avoided backing any bidder, declaring that ‘none of them are particularly great friends of mine’, with sources suggesting he will want Paramount and Netflix to fight for his approval.
Competition fears: US President Donald Trump suggested Netflix’s proposed £62bn takeover of Warner Bros Discovery could be problematic
‘I know the companies very well,’ he said on Monday night, adding: ‘I know what they’re doing, but I have to see what percentage of the market they have.’
Arguing that Trump should recuse himself from any involvement, Nell Minow, chairman of ValueEdge Advisors, said: ‘If you were teaching a class at business school on conflicts of interest, this would be Exhibit A.’
Netflix struck the first blow in the bidding war when it agreed to pay for Warner Bros Discovery’s film studios and streaming services, which includes HBO.
Bosses at Paramount were furious, having made six offers over 12 weeks for Warner Bros Discovery only to lose out to Netflix.
Paramount, which is behind films including The Godfather, Titanic and Top Gun while also owning news service CNN, then went public with its rejected offer.
Scott Amey, general counsel with public interest group Project On Government Oversight, said Trump should ‘avoid saying and doing anything related to the potential Warner Brothers deal, and steer clear of any allegation that he’s trying to help his son-in-law [Kushner], who is tied to Paramount’.
The US Justice Department will review the final deal to ensure it does not harm competition in the media market.
DIY INVESTING PLATFORMS
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.