Jared Kushner’s financing role in Paramount’s $108 billion bid for Warner Bros Discovery injects Trump-family interests into one of the biggest media battles in years, raising concerns over whether the president’s influence could tip the scales.
Paramount Skydance (PSKY.O), opens new tab on Monday launched a hostile bid for Warner Bros Discovery (WBD.O), opens new tab in a last-ditch effort to outbid Netflix (NFLX.O), opens new tab and create a media powerhouse.
Paramount said its offer includes financing from Kushner’s investment firm Affinity Partners, along with financing from the Saudi and Qatari sovereign wealth funds and L’imad Holding Co, owned by Abu Dhabi.
Trump told reporters on Monday that he has not spoken with Kushner about Warner Bros Discovery, adding that neither Netflix nor Paramount “are friends of mine.” A day earlier, Trump said he would be involved in a decision on Netflix’s proposed acquisition of Warner Bros studios and streaming assets.
SUITORS TO FACE ANTITRUST SCRUTINY
Both Paramount and Netflix are likely to face intense antitrust scrutiny to ensure consumers, rivals and suppliers are not hurt by any tie-up, giving the government a big say in who ultimately buys Warner Bros Discovery.
The extent of Trump’s involvement will be another test of how far the president – whose family business interests have grown while he has been in office this year – is prepared to go in breaking conflict-of-interest norms.
“If you were teaching a class at business school on conflicts of interest, this would be Exhibit A,” said Nell Minow, chair of Portland, Maine-based ValueEdge Advisors, adding Trump should recuse himself from any involvement in the deal clearance.
Spokespeople for the White House and for Affinity Partners did not immediately respond to requests for comment.
