The Trump administration is showing support for Paramount Skydance’s bid to acquire Warner Bros. Discovery, making it clear that competing bidders might run into significant challenges from U.S. regulators, as reported by On the Money.
As Warner Bros. Discovery, often referred to as WBD, begins its sale process this week, Paramount Skydance, a rising media force headed by CEO David Ellison—who is also the son of Larry Ellison, a well-known tech magnate and Trump backer—seems to have a distinct edge, according to a government insider.
WBD, which operates the number one studio and the third-ranked streaming service, along with channels like HBO and CNN, is poised for a big decision.
A senior official commented, “Who ends up owning Warner Bros. Discovery matters greatly to the administration. The board must carefully evaluate not only the price but also which bidders have the best chance of successfully closing the deal.” The official specifically mentioned the Ellisons.
Unlike Paramount Skydance, many of WBD’s potential suitors, such as Netflix, Amazon, and Comcast, face various obstacles that could complicate approval from key agencies like the Federal Communications Commission and the Justice Department’s antitrust division.
For Comcast, issues include critical coverage from its left-leaning network MSNBC, which includes programming that seems to express anti-Trump sentiments.
One insider noted, “It’s unlikely that Comcast’s CEO, Brian Roberts, will be able to expand and acquire something like CNN. I mean, maybe he could reach out for a major détente with Trump, but I’d be skeptical about that.”
As for Netflix and Amazon, both companies eyeing parts of WBD face serious antitrust concerns. Netflix is already the top streaming service, while Amazon is dealing with scrutiny from the Federal Trade Commission for alleged marketing irregularities.
Meanwhile, WBD’s CEO, David Zaslav, thinks he could appeal to the administration’s free-market ethos, pushing for the acceptance of other bids beyond Paramount Skydance.
Comcast is reportedly planning to argue for its case in wanting to acquire WBD, especially after proposing to spin off the left-leaning MSNBC into a separate division.
Insiders claim Zaslav has to take regulatory challenges and the administration’s contentions about perceived media bias into account, particularly from the left, which could influence approval processes.
Neither WBD nor Paramount Skydance had comments on the matter, nor did the Justice Department’s antitrust division representatives.
This administration official’s remarks come after reports indicated that Makan Delrahim, former head of the Justice Department’s antitrust division during Trump’s initial term, was brought on by Paramount Skydance to strengthen their chances in the WBD negotiations.
As previously reported, Zaslav kicked off the bidding process on Thursday, which could go as high as $80 billion. It’s also noted that he turned down three previous offers from David Ellison, the highest being $23.50 per share.
Ellison is expected to make yet another attempt, perhaps a more direct approach seeking support from shareholders to enable his takeover through Paramount Skydance.
David Ellison’s father, Larry Ellison, co-founder of Oracle, boasts a net worth around $350 billion and maintains a close relationship with Donald Trump, which might facilitate smoother regulatory approvals for a transaction of this magnitude.
Trump administration officials have highlighted Larry Ellison’s previous experience in negotiating with presidents, which could be critical in the context of this acquisition. He previously completed an $8 billion deal for Paramount.
This context follows Paramount’s settlement of $16 million with Trump over a lawsuit he filed regarding claims that a CBS news segment edited an interview with Kamala Harris in a way to make her appear more competent during the contentious 2024 presidential election period. In response, CBS initiated efforts to investigate allegations of left-wing bias in its newsroom, bringing on Bari Weiss, known for her pro-Israel stance, to lead the network.
Trump has expressed admiration for the Ellison family, labeling them as “friends” and “strong supporters,” suggesting he believes under their guidance, CBS could strive for greater fairness.
