Another major media conglomerate teeters on the precipice of being absorbed by a deep-pocketed ally of Donald Trump and his administration. On Thursday, Netflix effectively backed out of a deal to purchase Warner Bros., ceding the purchase to Paramount. Paramount is owned by David Ellison, a Trump favorite and the son of the president’s billionaire buddy Larry Ellison.
At the end of last week, Netflix had a signed deal to purchase the theatrical and streaming divisions of Warner Bros., with the company’s cable division — including CNN — set to be spun off into a separate company. Last weekend, Trump demanded that Netflix fire board member Susan Rice (a high-ranking member of the Obama and Biden administrations) and Netflix co-CEO Ted Sarandos refused Trump’s demand.
On Tuesday, Warner Bros. announced that it was considering a new bid from Paramount, putting the Netflix deal in doubt. And then on Thursday, Warner Bros. said it considered Paramount’s bid as superior and, soon after, Netflix said it would not raise its bid, effectively ceding the purchase to Paramount.
Trump wanted Warner Bros. assets — particularly CNN — in the hands of an ally. His public statements and White House leaks made it crystal clear both that he preferred that Paramount purchase Warner Bros., and that his administration would corruptly wield its regulatory power to thwart rival bidders. And that strategy seems to have succeeded.
Media companies are falling to Trump’s authoritarian will. In less than a year, CBS News and TikTok have come under the thumb of a single family of pro-Trump billionaires. CNN, HBO and Warner Bros.’ movie business will be added to that list if the deal goes through. Meanwhile, the owners of The Washington Post and Los Angeles Times seem to have been suborned and are disemboweling their institutions, while ABC News’ corporate owners have repeatedly capitulated to the administration.
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