What Happens When a Bonkers President Takes Over the Private Sector
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Friends,
What’s really at stake in the fight between Netflix and Paramount for Warner Bros Discovery?
Let me make it clear I’m against Netflix acquiring Warner Bros Discovery. That would concentrate corporate power in ways that harm consumers and distort American politics.
But Paramount’s acquisition of Warner Bros would be just as bad, if not worse.
What’s at stake in all of this is Trump’s — or any president’s — power over the private sector of the American economy.
The back story here is that Warner Bros Discovery owns CNN, and Trump loathes CNN. He frequently complains that its coverage of him has been too negative. He’s termed those running CNN “corrupt and incompetent” and has told top aides he wants new ownership of CNN, along with changes in CNN programming and personnel.
Last week, Trump declared he would involve himself in any proposed sale of Warner Bros, and on Wednesday he said it was “imperative” that the transaction result in the sale of CNN and replacement of its leadership.
Another part of the back story involves Larry Ellison — one of the richest people in America and the largest individual shareholder of Paramount, whose son runs it, and whose operation on Monday launched an unfriendly tender offer for Warner Bros Discovery, to counter Netflix’s friendly offer.
Ellison is an ally of Trump. He has assured Trump and his top aides that if Paramount gains control of Warner Bros and CNN, it will get rid of CNN personnel whom Trump apparently detests, including Erin Burnett and Brianna Keilar. (Paramount already owns CBS.)
Paramount is portraying itself as the best bid for Warner Bros Discovery because it will have an easier time “getting regulatory approval” of the deal than will Netflix — even though Paramount is relying on financial backing from three Middle East sovereign-wealth funds (along with Jared Kushner).
Who in their right mind would give Middle East wealth funds any leverage over CBS and CNN? Answer: Trump, whose family business is already deeply dependent on financing from the Middle East.
Trump trusts the Ellisons because they pushed Paramount to settle Trump’s frivolous $16 million lawsuit against CBS and cancel Stephen Colbert — much to Trump’s delight.
Trump loyalist flak Brendan Carr, the chairman of the Federal Communications Commission, then promptly approved the $8 billion merger of Paramount with Skydance Media.
Trump’s alliance with Larry Ellison goes back to 2020,
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