The merger between Netflix Inc (NASDAQ:NFLX) and Warner Bros. Discovery (NASDAQ:WBD), which has seen Paramount Skydance (NASDAQ:PSKY) try to play spoiler, could have a new wrinkle with President Donald Trump sharing a piece on social media in opposition to the tie-up.
• Warner Bros. Discovery shares are experiencing downward pressure. Why is WBD stock retreating?
Trump’s Social Media Post Could Worry Netflix
Netflix is the current winning bidder for Warner Bros. Discovery, with the streaming giant acquiring the film and television studio and streaming assets from the media giant.
That deal has seen Paramount Skydance submit additional offers for the entire company, including cable and television assets. Warner Bros. Discovery has not been won over by the Paramount Skydance bids, even with billionaire Larry Ellison personally guaranteeing financing.
Warner Bros. Discovery may want to reconsider, given a new social media post from Trump.
“Stop the Netflix Cultural Takeover,” Trump posted on his Truth Social platform over the weekend, while sharing a story from December written by John Pierce for One America News.
Pierce is a lawyer who defended several Trump supporters who were part of the Jan. 6 attack on the U.S. Capitol, as reported by Deadline.
In the piece, Pierce argues that the Department of Justice and Federal Trade Commission should block the deal. While some have argued against antitrust concerns for the size of the streaming assets for the potential combined company, Pierce’s argument mostly centers on “free expression and America’s cultural pluralism.”
Pierce argues that Netflix would not only weaken competition but would also serve as the dominant cultural gatekeeper. The lawyer argues that the combined company would have too much ideological control and be able to spread its “progressive narratives” to a larger audience.
“It is time to say no to a woke media monopoly before the damage becomes impossible to reverse.”
By sharing the piece, Trump has signaled that he agrees with at least a portion of this argument. His post that says to “stop the cultural takeover” shows more support for Pierce’s argument.
Trump’s Past Support For Paramount Skydance
Those who have been following the media merger saga of Warner Bros. Discovery likely know by now that Paramount Skydance has ties to Trump with major investor Ellison a close ally of the president.
Ahead of the bidding process for Warner Bros., a Trump administration official even suggested that media companies outside of Paramount shouldn’t bid in the process.
“The Warner board needs to think very seriously not just on the price competition, but which player in the suitor pool has been successful getting a deal done.”
While most investors can read between the lines and realize that this would likely mean Paramount Skydance, given their recent merger approved by the Trump administration, the senior official actually spells it out.
“And that points to the Ellisons,” the senior administration official said.
The official suggested that the odds of success to get the deal cleared could be harder for anyone “outside of Paramount Skydance.”
Bipartisan Support Against Netflix, But Not For Paramount
Trump’s latest social media post comes with Democratic members of Congress also being against the potential tie-up of Netflix and Warner Bros. Discovery. The difference is that members of Congress against the deal are so due to antitrust issues, large control and not because of so-called “woke” content coming from Netflix.
While members of Congress don’t support Netflix, they aren’t likely in favor of Paramount Skydance either, especially given the media company’s relationship with Trump.
Paramount paid a $16 million settlement with Trump that came ahead of the pending merger of Paramount and Skydance. Members of Congress, including Sen. Elizabeth Warren (D-Mass.) accused the settlement of being a bribe. Warren has spoken out against both Netflix and Paramount acquiring Warner Bros. Discovery.
The hiring of Bari Weiss as the editor-in-chief at CBS News has led to calls that Paramount has shifted its political leanings in favor of Trump.
Trump’s comments on the Warner Bros. Discovery approval process and his claim that CNN is a “disgrace” that should be sold have fueled concerns about presidential influence on the merger.
While Pierce argues that the acquisition by Netflix could lead to more “woke” content, the counterargument is that a win by Paramount Skydance could lead to more content that is pro-Trump.
Photo: Shutterstock
Recent Comments