Trump says he will stay out of Netflix-Paramount fight over Warner Bros

WASHINGTON: U.S. President Donald Trump said on Wednesday he will stay out of the Netflix and Paramount Skydance fight over Warner Bros Discovery, a reversal from late last year when he said he would be involved in reviewing the deal.

AI Brief

Trump says he will stay out of the Netflix and Paramount Skydance bidding fight for Warner Bros, leaving the decision to the US Justice Department.
Netflix has offered US$82.7B while Paramount Skydance made a hostile competing bid, each arguing the other poses bigger regulatory hurdles.
Paramounts bid is tied to CEO David Ellison, whose family has ties to Trump, but Warner Bros has repeatedly rejected the offer due to debt concerns.

"I haven't been involved," Trump said in an interview with NBC News.

"I must say, I guess I'm considered to be a very strong president. I've been called by both sides. It's the two sides, but I've decided I shouldn't be involved. The Justice Department will handle it."

Trump said in December he would have a say on whether the proposed merger between Netflix and Warner Bros should go forward, telling reporters that the market share of a combined entity could raise concerns.

"I'll be involved in that decision," Trump said at the time.

Netflix and Paramount Skydance covet Warner Bros for its film and television studios, extensive content library and franchises.

Netflix has proposed an US$82.7 billion acquisition of Warner Bros Discovery. The U.S. Department of Justice is reviewing that offer and a competing, hostile bid from Paramount Skydance.

The Republican leader acknowledged the divide between the bidders in the NBC interview on Wednesday.

"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," he said.

"They're beating the hell out of each other - and there'll be a winner."

Paramount has said its bid would have an easier regulatory path to approval. But Warner Bros has repeatedly rejected offers from Paramount, which would wind up deep in debt to finance the transaction.

Paramount's CEO is David Ellison, whose father, billionaire Oracle co-founder Larry Ellison, has cultivated a close relationship with Trump.