The proposed deal between Netflix and Warner Bros. Discovery may face some impediments. Sources are showing that US President Donald Trump's family is taking an interest in the merger process.
Paramount Skydance, which is connected to the Trump administration, has submitted a hostile bid of $108.4 billion to buy Warner Bros. According to reporting in The Washington Post, the bid is led by Jared Kushner, son-in-law to the president.
Netflix, Comcast Corporation, and Paramount all vie for the acquisition of Warner Bros. Discovery's TV and movie studios and the streaming division. The company reportedly favors Netflix after weeks of competition. Netflix will buy Warner Bros. for $72 billion (approximately Rs. 6.48 lakh crore). However, President Trump commented that the deal should be reviewed.
Paramount has raised concerns about the sale process. The company’s earlier acquisition proposals since September were rejected. Now, it has made a $108.4 billion bid, offering $30 per share. This hostile bid targets shareholders directly, even though Warner Bros.’ management does not support the deal. Paramount also stated that it will pay the full amount in cash. The bid includes other Warner Bros. businesses as well.
According to a regulatory filing, the bid is being led by Kushner’s Affinity Partners, the Washington Post reported. The moves mark a fresh complication for Netflix as it looks to expand as a major media company. Under the tentative deal, Netflix would pay $28 a share.
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