When Paramount launched a hostile $108 billion takeover bid for Warner Bros. Discovery (WBD) on December 8, the news shook the entertainment world to its core. Many have discussed how a WBD-Netflix merger would affect the theater business. Especially since Netflix’s co-CEO Ted Sarandos has made it clear that he wants to make movies available for streaming and called the movie theater model “outdated“.
While a lot of focus has been on the future of movie theaters, some crucial details have been left out. The press release didn’t mention that Trump’s son-in-law Jared Kushner is backing the deal. Nor did it mention the $24 billion in financing from Saudi Arabia, Qatar, and Abu Dhabi. Or that allegedly Trump himself could be involved in making this deal happen. Those details only came out later, buried in SEC filings.
The Players
Paramount is led by David Ellison, whose father Larry Ellison is one of Trump’s biggest donors and closest allies. Larry hosted a fundraiser for Trump in 2020 and has maintained a tight relationship with the White House. When asked about Paramount’s attempts to purchase Warner Bros. Discovery, Trump said “They’re friends of mine. They’re big supporters of mine,” he said. “They will make the right decisions.”
Then there’s Jared Kushner. His private equity firm Affinity Partners is helping to finance Paramount’s bid alongside those Middle Eastern sovereign wealth funds.
Affinity received $2 billion from Saudi Arabia’s Public Investment Fund just six months after Kushner left the White House. Despite massive fees, the firm hasn’t generated any returns for investors. Senate Finance Committee Chairman Ron Wyden suggested the Saudis don’t care about returns because they’re just funneling money to Trump’s family.
Trump claimed he never discussed the deal with Kushner. Nobody believes that.
How Involved Is Trump In Paramount’s Hostile Bid?
Reportedly, a senior White House official confirmed that Larry Ellison and Trump discussed the Paramount acquisition. David Ellison admitted on CNBC that he’s had “great conversations with the president” about the deal.
Meanwhile, Trump has stated the competing Netflix deal “could be a problem” due to market share. He then denied having any knowledge of the deal during a White House event for farmers.
The Trump administration did approve of the Paramount-Skydance merger despite antitrust concerns. That decision came after CBS paid Trump $16 million to settle a frivolous lawsuit over a 60 Minutes interview. The pattern isn’t subtle.
Is This About CNN?
This isn’t just about money. Warner Bros. Discovery owns CNN, which has been critical towards Trump throughout his political career.
White House officials have privately discussed how a Paramount acquisition could lead to replacing CNN’s leadership with journalist Bari Weiss. Weiss is currently editor-in-chief for CBS News and is reportedly under orders to eliminate what the administration views as“left-wing bias”.
If the Ellisons buy Warner Bros. Discovery, they’ll control one of the largest movie studios in Hollywood, HBO, and CNN. Trump gets his supporters running a major news network. Everyone wins except the public.
Everything Is Out In The Open
What’s disturbing about this situation is how openly transactional everything is. Trump isn’t even pretending that he doesn’t benefit from Paramount buying Warner Bros. Discovery. Regulatory approval depends on who’s making the bid and what connection they have to Trump.
The corruption isn’t hidden in backrooms anymore. It’s included in SEC filings and presidential statements.
Whether Paramount’s bid succeeds or fails, the damage is done. Trump has shown that regulatory agencies will bend to accommodate friends and punish rivals. And he’s made it clear that major media companies need his approval to operate.
Warner Bros. Discovery shareholders will make their choice in the coming weeks. Yet the real choice was made by Trump and his inner circle long ago. They’ve chosen loyalty over legitimacy.
The only question now is whether anyone will stop them.
