TLDRs;

  • Former U.S. President Donald Trump revealed buying more than $1.1 million in Netflix bonds amid a fierce bidding war for Warner Bros. Discovery.
  • These investments came to light as Netflix and Paramount Skydance vied for regulatory and political backing for their rival takeover bids.
  • Trump also purchased up to $1 million in Warner Bros. bonds several months before their prices rose, sparking questions about timing.
  • Paramount Skydance eventually won the contest, taking on substantial debt, while Netflix walked away with a multi-billion-dollar breakup fee.

Netflix (NFLX) shares dipped slightly after financial filings showed that former U.S. President Donald Trump bought over $1.1 million in Netflix corporate bonds in recent months. The investments occurred during a highly competitive bidding fight for Warner Bros. Discovery, a media powerhouse whose assets have been central to consolidation across the entertainment sector.

Per disclosure documents, Trump’s Netflix bond purchases ranged from roughly $1.1 million to $2.3 million. The filings did not indicate whether any of the securities had been sold, leaving the current profit or loss from the investment unclear.

Alongside the Netflix bonds, Trump also bought between $500,002 and $1 million in Warner Bros. Discovery-issued bonds in December. At the time of purchase, those bonds traded at around the low 90-cent mark per dollar but have since climbed to about 95 cents.

The timing of these investments has attracted notice because they aligned with negotiations where multiple companies were competing to acquire Warner Bros. Discovery.

Media Giants Battle for Control

The disclosure emerged during a corporate battle between Netflix and Paramount Skydance to gain control of Warner Bros. Discovery. Both firms sought regulatory approval and political support for their individual proposals.

Paramount Skydance finally secured the winning bid, said to be a deal worth approximately $110 billion. The proposal had the backing of a personal financial guarantee from Larry Ellison, the billionaire tech entrepreneur who founded Oracle Corporation.

The result meant Netflix didn’t get the desired media assets but also avoided taking on the huge new debt associated with the acquisition.

Industry analysts point out that the battle mirrored a larger shift happening in Hollywood, where streaming services, tech companies, and traditional studios are competing to merge content libraries and production capacities.

Political Connections and Influence

Trump’s investments have faced scrutiny in part because the bidding companies were also seeking political support during the regulatory process.

U.S. Presidents aren’t subject to the same conflict-of-interest laws that apply to many other executive branch employees, meaning they can legally hold financial stakes while making decisions that might impact industries or companies.

Reports suggested that executives from both sides tried to access the administration during the negotiation phase. Paramount Skydance CEO David Ellison is said to have met with administration officials and laid out possible strategic changes if his company took control of Warner Bros. Discovery.

At the same time, Netflix’s leadership also kept in touch with Trump. Co-CEO Ted Sarandos reportedly met the former president at his Mar-a-Lago home, while other reports indicated discussions took place in Washington.

Trump himself publicly doubted the feasibility of the proposed merger on occasion and was reported to have pressured Netflix to remove board member Susan Rice.

These interactions put the president in a uniquely powerful position during the corporate competition.