Former US President Donald Trump made significant financial moves in December, acquiring at least $1 million in bonds from two major media giants, Netflix and Warner Bros Discovery (WBD). This investment came shortly after he publicly commented on a proposed multi-billion dollar merger between the two companies.
Timing of Purchases Raises Questions
A financial disclosure report released by the White House on Friday detailed the transactions. Trump made two separate purchases from Netflix and two from Warner Bros Discovery, each valued at a minimum of $502,000. The trades were executed on 12 December and 16 December.
This timing is notable because it followed, by just over a week, the announcement that Netflix had agreed to acquire Warner Bros Discovery in a monumental deal worth $82.7 billion. The agreement is still pending regulatory approval.
"I'll Be Involved": Trump's Prior Statement
Five days before initiating the bond purchases, Trump addressed the proposed merger with reporters at the Kennedy Center on 7 December. He remarked on the combined company's potential market share, stating, "When they have Warner Bros, that share goes up a lot." He notably added, "I'll be involved in that decision too."
His subsequent financial activity in the companies involved has sparked immediate scrutiny, given his stated intention to engage in the regulatory process governing the merger.
Hostile Bid and Political Backlash
The media landscape was further complicated when, the day after Trump's Kennedy Center comments, Paramount Skydance launched a hostile $108.4 billion takeover bid for Warner Bros Discovery. This bid is financially backed by CEO David Ellison and his father, billionaire Larry Ellison, both known to be allies of the Trump administration.
The Netflix-WBD deal itself has not been welcomed by all. US Senator Elizabeth Warren labelled it an "anti-monopoly nightmare." The Writers Guild of America also criticised the merger, warning it could eliminate jobs, depress wages, and reduce content diversity for viewers.
The recent bond investments form part of a broader pattern. The disclosure showed Trump purchased approximately $100 million in municipal and corporate bonds between mid-November and late December. Earlier in his term, he acquired over $100 million in bonds from firms including Citigroup and Morgan Stanley.
White House Response and Managed Portfolio
The White House did not provide an immediate comment on the matter. However, an unnamed administration official told the Washington Post that Trump's stock and bond portfolio is managed independently by third-party financial institutions.
The official emphasised that neither the President nor his family can direct or influence how the portfolio is invested or when specific trades are made. Despite this assertion, the proximity of the investments to Trump's public statements on the merger is sure to fuel ongoing debates about ethics and influence in media consolidation.
