By Damian Paletta
Good morning. Hollywood couldn't dream up a script like this.
President Trump now has enormous power over the future of Warner Bros. Discovery, as Netflix and Paramount are jostling for control of the entertainment titan.
The president's leverage is so obvious that both David Ellison, who runs Paramount, and Ted Sarandos, Netflix's co-CEO, have spoken with Trump to make their competing cases.
The Justice Department could throw up all sorts of antitrust arguments or other roadblocks, but both companies are already acting like the fate of any multibillion-dollar deal is going to run through the Oval Office. And they are likely right. Trump has asked to be kept in the loop of any potential antitrust probe into Netflix's deal for Warner.
Ellison, son of Oracle executive chairman and Trump friend Larry Ellison, is the latest business leader to realize the enormous opportunity that comes from a personal alliance with Trump. The elder Ellison called Trump after the Netflix deal was announced and told him the transaction would hurt competition.
David Ellison has brought Jared Kushner, Trump son-in-law, into his proposed acquisition and praised the president on CNBC Monday. If Ellison is successful, it would bring both CBS and CNN -- a constant target of Trump's criticism -- under Paramount's control. Ellison has offered assurances to administration officials that if he bought Warner, he'd make changes to CNN. Trump has told people close to him that he wants new ownership of CNN as well as changes to its programming.
"I have to see what percentage of market they have. None of them are particularly great friends of mine," Trump said at a White House roundtable Monday. A person close to Trump said the president will want Paramount and Netflix to compete for his approval of a deal. He could make this into an open audition, something he has a lot of experience with from all those seasons of "The Apprentice." How will this movie end?
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People and Policies I'm Watching
The economy: Trump is in Pennsylvania to give a speech on the economy as aides press him to address the cost of living.
Alina Habba: Trump's former personal lawyer has resigned as U.S. attorney in New Jersey, after an appeals court affirmed a decision rejecting her appointment.
Boat-strike video release: Trump said it is up to Defense Secretary Pete Hegseth whether to make public the footage of the entire Sept. 2 operation, backing away from earlier support for releasing it.
What I'm Following
China will get its chips. The Trump administration is poised to allow Nvidia to send its H200 AI chip to China, the latest twist in the company's battle to maintain access to the world's second-largest economy. It will be he most powerful chip Nvidia has been allowed to sell to Beijing, but it is still blocked from sending its most advance product, the Blackwell chip, to China.
Farmers with a beef against the White House's tariffs are set for a $12 billion bailout. The aid package was unveiled at the White House during a Monday roundtable with farmers. Top administration officials have been discussing the bailout behind the scenes for months.
The maker of an ICE-tracking app has sued Attorney General Pam Bondi and other officials. Joshua Aaron, creator of ICEBlock, said they censored his speech through a pressure campaign that ultimately resulted in the app being removed from Apple's App Store.
What Else Is Happening
-- An unusually divided Fed is expected to deliver a rate cut when
central-bank officials gather Tuesday for their final two-day
rate-setting meeting of the year.
-- The Supreme Court appears ready to back Trump's bid to fire top
government agency and board officials.
-- European leaders are pushing for a bigger say over Ukraine, amid concerns
Kyiv will be railroaded into accepting a U.S.-backed plan to end the war.
What I'm Reading
-- Jasmine Crockett Files to Run for U.S. Senate Seat Held by John Cornyn
(The Dallas Morning News)
-- Sacramento DA Is Investigating Allegations of Fraud in NAACP Covid Food
Program (The Sacramento Bee)
-- $12B Bailout Is a 'Bandaid,' Not Long-Term Stability for Minnesota
Farmers (The Minnesota Star Tribune)
About Me
I'm Damian Paletta, The Wall Street Journal's Washington coverage chief. I've covered Washington for 22 years as a reporter and editor. I've covered the White House, Congress, national security, the federal budget, economics and multiple market meltdowns.
WSJ Politics brings you an expert guide to what's driving D.C., every weekday morning. Send your feedback to politics@wsj.com (if you're reading this in your inbox, you can just hit reply). This edition was curated and edited in collaboration with Alistair Dawber and Alina Heineke. Got a tip for us? Here's how to submit.
(END) Dow Jones Newswires
December 09, 2025 06:54 ET (11:54 GMT)
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