Why did US President Trump object to Netflix’s acquisition of Warner Bros. Discovery? Just as Netflix, one of the world’s two largest companies, was preparing to acquire all rights to WBD, Trump intervened and declared that Netflix’s acquisition should be blocked, given the companies’ size. The reason given was that it would create unfair competition.
Immediately after Trump’s announcement, Paramount Skydance stepped in and moved to acquire WBD on significantly better terms than Netflix.
Paramount, backed by the billionaire Ellison family, announced a direct offer to shareholders of $30 (£22.50) per share to acquire all of Warner Bros., including its traditional television networks. The company stated that this offer was a “superior alternative” to Netflix’s, offered a larger down payment to shareholders, and had a higher probability of regulatory approval.
The question is: Did Trump sway Paramount, or was it truly a profitable trade?