Trump buys $1.1m Netflix bonds during Warner Bros. bidding war

US president Donald Trump bought more than US$1.1 million of Netflix bonds over recent months while Netflix and Paramount Skydance competed to buy Warner Bros. Discovery, according to financial disclosures showing a range of US $1.1 million to US$ 2.3 million.

He also bought between US$500,002 and US$1 million of Warner Bros. bonds in December that traded in the low 90s on the dollar and have since risen to about 95 cents.

The filings do not show any sales of the Netflix bonds, leaving his total gains unclear.

Trump publicly questioned the merger’s viability and, according to reports, pressured Netflix to remove board member Susan Rice.

Paramount Skydance’s US$110 billion rival offer is backed by a personal guarantee from Larry Ellison.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Bond buys happened during a fight for the president’s support

The president held a financial stake, since U.S. presidents are exempt from conflict-of-interest laws that bind other executive branch officials 1.
During his purchases of Netflix and Warner Bros. bonds, Netflix and Paramount Skydance sought his approval for separate deals to buy Warner Bros. Discovery 2.
Paramount Skydance CEO David Ellison met Trump administration officials and promised “sweeping changes” at CNN if his bid succeeded 2.
Netflix co-CEO Ted Sarandos built a personal tie with Trump, meeting him at Mar-a-Lago. Other reports place a meeting in the Oval Office 2.
The outreach put the president in a deciding role for the deal’s fate 2.

Paramount’s win brings debt and a new approach to media mergers

If the transaction closes, Paramount Skydance would take on more than $78 billion in debt, which sources called a red flag for investors 3.
That load may drive years of sharp cuts, echoing Warner Bros. Discovery’s experience after its last merger 4.
Netflix left with a $2.8 billion breakup fee and no added liabilities. Some executives privately said it had “dodged a bullet” 3.
The result ties M&A outcomes in regulated media to politics as well as spreadsheets, since Paramount promoted its closeness to the president as a selling point 2.