Paramount Attempts to Outbid Netflix In Warner Bros Acquisition

Paramount launched a hostile bid for Warner Bros Discovery, attempting to outbid Netflix on Monday, and some are raising ethical questions over Jared Kushner's role in the bid.

The Details: Paramount's $108 billion bid to acquire the long-time Hollywood icon is backed by equity from the Ellison family and RedBird Capital, which aims to outbid Netflix on the deal. The Ellison family has several investors helping with the offer, including Affinity Partners, a private equity firm founded by Kushner, President Donald Trump's son-in-law. Trump stated that he has not spoken with Kushner about the Warner Bros Discovery acquisition attempt, but has indicated that he would be involved in a decision regarding Netflix's proposal.

For Context: Netflix's bid included only Warner Bros film and TV studios, as well as HBO and HBO Max, while Paramount is seeking all the company's assets, which include TV networks like CNN, Discovery, and TNT Sports. Whoever moves forward with a winning bid for the Hollywood giant will likely be faced with scrutiny from the Department of Justice's Antitrust Division to ensure the merger will not reduce competition and lead to higher prices and reduced quality. Many are also keeping a close eye to see how involved Trump may be, raising questions over conflict-of-interest norms for presidents.

How The Media Covered It: Reuters (Center bias) framed the entire article around the ethical questions being raised over Kushner's role in the bid. The coverage included commentary from the chair of Portland, Maine-based ValueEdge Advisors, Nell Minow, who said if you were teaching a class on conflicts of interest, "this would be Exhibit A." The New York Post (Lean Right) mentioned that it is unknown how much Kushner's firm offered as an investment, and focused much of the coverage on Trump's warnings that the Netflix deal "could be a problem," explaining that they already have "a very big market share." Coverage from the New York Times (Lean Left) also highlighted Kushner's role, saying out of the list of investors, "none stood out more than Affinity Partners, the private equity firm founded by President Trump's son-in-law." The article mentioned that "the president has long been critical of CNN" and that the "inclusion of Affinity Partners adds a new political twist to the fight for Warner Bros Discovery."  

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