Trump Reverses Stance on Warner Bros. Discovery Acquisition Battle

Stock News02-05 20:39

Former US President Donald Trump has stated he will not intervene in the bidding war between streaming giant Netflix and Paramount Global for Warner Bros. Discovery. This marks a significant shift from his position two months ago, when he indicated he would be involved in approving the transaction. In a recent interview, Trump remarked, "I have stayed out of it. Both sides called me. It's a contest between two parties, but I decided I should not get involved. The Department of Justice will handle it." He added, "There is a view that one of the companies is too large to be allowed to proceed with the deal, while others disagree. They are fighting it out—there will be a winner in the end." In December, Trump had commented that Netflix holds a "very large" market share, which would grow substantially if it acquired Warner Bros.' assets. "That will be for the economists to evaluate. I will also be part of that decision," he said at the time. Netflix previously proposed acquiring Warner Bros.' studio and streaming assets for an enterprise value of $82.7 billion. The board of Warner Bros. Discovery has supported the offer. Meanwhile, Paramount Global has launched a hostile bid for the entire company, including Warner Bros.' cable networks such as CNN, valuing the business at over $108 billion. Paramount recently extended its bidding deadline to February 20.

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