Trump Acquires Netflix, WBD Bonds Post-Merger Announcement

Following the merger announcement of Netflix and Warner Bros. Discovery (WBD), President Donald Trump invested heavily in corporate bonds from both companies. This development comes after the companies revealed a significant deal worth $83 billion for streaming and studio assets.

Trump’s Bond Purchases

A recent financial disclosure from the White House, dated January 14, indicates that Trump acquired corporate bonds valued up to $1 million from each company in December. Specifically, he purchased:

• Netflix Bonds: Two tranches, maturing in November 2029.
  • First purchase: $250,001 – $500,000 on December 12.
  • Second purchase: $250,001 – $500,000 on December 16.
• Discovery Communications LLC Bonds: Two tranches, maturing in 2030.
  • First purchase: $250,001 – $500,000 on December 12.
  • Second purchase: $250,001 – $500,000 on December 16.

A spokesperson from the White House did not respond promptly to inquiries about Trump’s financial moves.

Details of the Merger and Competitive Offers

Netflix and WBD announced their merger deal on December 5, which comprises a cash payment of $23.25 per share and a stock target of $4.50, depending on market conditions. As Netflix shares have dipped below the collar, there is ongoing consideration for an all-cash offer.

Meanwhile, Paramount is challenging the merger with its own $108.4 billion tender offer, which is set to expire on January 21 at 5 p.m. ET. However, their legal team indicated that this timeline might extend after a Delaware judge dismissed their request to expedite proceedings against WBD.

Legal Challenges and Potential Changes

Paramount’s CEO, Ellison, has expressed concerns about WBD’s valuation processes and the proposed spinoff of Discovery Global. He argues that these issues might compromise shareholders’ ability to accurately assess the risks involved in the merger.

As of December 19, fewer than 400,000 shares of WBD had been tendered to Paramount. Additionally, Ellison is contemplating a proxy battle to replace WBD’s board of directors, aiming to better position itself against the current merger proposal. Furthermore, an amendment to Warner’s bylaws mandating shareholder approval for the Discovery Global spinoff is also in the works.

Regulatory Considerations

Both Paramount and Netflix are engaging with regulatory bodies, including the Department of Justice and the European Commission. The DOJ has indicated it expects the merger deal could close within a year, while Netflix has projected a timeline of 12 to 18 months for completion.

Trump’s Position

Donald Trump has not publicly taken a firm stance on the merger but has suggested he would participate in any decision-making process. He has previously called for the sale of CNN as part of the merger. Recently, he criticized CBS for its coverage of his administration while pointing out potential concerns regarding the Netflix merger.

Netflix co-CEO Ted Sarandos responded to Trump’s comments, expressing surprise and indicating that prior conversations did not align with Trump’s statements.

Shareholder Votes and Future Meetings

Shareholders are anticipated to vote on the Netflix merger deal in late spring or early summer. WBD has yet to announce a date for its annual meeting in 2026. A significant milestone would occur if just 20% of WBD shareholders, who have held the stock for at least a year, call for a special meeting prior to the scheduled date.