Trump, Ellison & a $108B Battle for Warner Bros. Discovery | Paramount-Netflix Deal

The battle for Warner Bros. Discovery intensified this week as Paramount Global upped its bid to $108 billion, escalating a high-stakes takeover fight with Netflix and drawing in the political arena. The escalating drama, fueled by the involvement of former Trump administration officials and pointed commentary from the former President himself, underscores the increasingly complex intersection of entertainment, business, and politics.

Paramount’s revised offer, an enhancement of its previous $30-a-share bid, comes ahead of a deadline late Monday to further sweeten the deal and sway Warner Bros. Discovery’s board. While specific details of the new proposal remain undisclosed, the move signals Paramount’s determination to derail Netflix’s existing $82.7 billion agreement to acquire the studio behind HBO, CNN, and a vast film and television library.

The situation has become notably politicized. President Trump over the weekend demanded that Netflix “IMMEDIATELY” fire Susan Rice, a former Obama and Biden administration official who serves on Netflix’s 13-member board, or “pay the consequences.” In a social media post, Trump labeled Rice “deranged” and lacking “talent or skills,” a move that injected a partisan element into the already complex business negotiations.

This isn’t the first time Trump has weighed in. He previously stated he would leave the matter to the Department of Justice, which is currently investigating whether either the Netflix or Paramount bids would harm competition. Trump has been a vocal critic of CNN, a key asset within Warner Bros. Discovery, and its on-air personalities.

Paramount, under the leadership of Larry Ellison’s son, David Ellison, is actively leveraging its connections to the Trump administration in an attempt to convince both Justice Department regulators and Warner Bros. Discovery shareholders that the Netflix deal is fraught with risk. The company has hired Makan Delrahim, a former Trump administration antitrust chief, to spearhead its campaign, and has reportedly engaged in outreach to Republican lawmakers, including a visit to Paramount’s Los Angeles lot by Senator Ted Cruz.

Netflix CEO Ted Sarandos attempted to downplay the political interference, stating in a BBC interview Monday that “This is a business deal, it’s not a political deal.” However, Paramount’s strategic moves suggest a clear willingness to play the political card.

The situation is further complicated by concerns raised by Democratic lawmakers. Senators Cory Booker, Chuck Schumer, and others have expressed concerns about the influence of corporate lobbyists on antitrust decisions, and have requested that Ellison preserve records related to the proposed transaction. This followed reports that Gail Slater, the Justice Department’s antitrust chief, was removed from her position after challenging certain business interests.

The core of the disagreement lies in the differing visions for Warner Bros. Discovery. Netflix’s offer, valued at $72 billion in cash for the studio and streaming business (with an enterprise value of approximately $83 billion, or $27.75 per share), focuses primarily on the streaming services, including HBO Max, and the studio’s content library. Paramount, in contrast, is pursuing a full acquisition of Warner Bros. Discovery, valuing the company at $108 billion including debt, or $30 per share, and is reportedly prepared to increase its bid to $31 per share.

Warner Bros. Discovery is also considering spinning off its portfolio of cable channels, including HGTV, TBS, and Cartoon Network, into a separate entity called Discovery Global, which shareholders would receive stock in. This move adds another layer of complexity to the negotiations.

Regulators at the Department of Justice have reportedly sent inquiries to all three companies, examining potential antitrust concerns. Specifically, they are scrutinizing Netflix’s historical practice of prioritizing streaming releases over theatrical releases, and whether the company has exerted undue leverage over content creators. A Senate Judiciary Subcommittee hearing earlier this month also raised questions about Netflix’s business practices and potential antitrust implications.

The involvement of David Ellison, who declined to testify at the Senate hearing, has also drawn scrutiny. Senator Booker challenged Ellison for failing to answer questions under oath regarding his dealings with the President.

USC Annenberg School for Communication and Journalism professor Gabriel Kahn suggests the deal is less about financial merits and more about political connections. “This was a classic Trump administration deal where proximity to the president counts a lot more than financial terms,” he said.

The outcome of this bidding war remains uncertain, but one thing is clear: the future of Warner Bros. Discovery is being shaped not only by financial considerations, but also by the currents of political influence and the strategic maneuvering of powerful players in both Hollywood and Washington. Warner stockholders are expected to vote on March 20.