Trump bought Netflix and Warner Bros. bonds amid bidding war with Paramount - Reuters
Kyiv • UNN
Donald Trump bought Netflix and Warner Bros. bonds worth over $1.1 million through a family trust. The deals took place amid criticism of the service by authorities.
U.S. President Donald Trump, according to government documents, bought more than $1.1 million worth of Netflix bonds over the past three months, while the streaming giant unsuccessfully battled Paramount Skydance for the acquisition of Warner Bros. Discovery, UNN reports with reference to Reuters.
Details
As the documents show, Trump bought more than $500,000 worth of Netflix bonds in two deals on December 12 and 16, and another $600,000 worth in two other deals on January 2 and 20. The White House indicated a range, not exact amounts, from just over $1.1 million to $2.25 million.
The purchases came as the Republican president and his regulatory representatives criticized Netflix in the press, questioning the deal's resilience to antitrust scrutiny and pressuring Netflix to dismiss board member Susan Rice, a former aide to former Democratic President Barack Obama, the publication writes.
It is unclear whether he made or lost money on the Netflix bonds, which yielded 5.375% interest and are due to mature in November 2029, as the documents do not state whether he sold the bonds and when that occurred.
Trump, like other U.S. presidents, is exempt from conflict of interest laws that prohibit other executive branch officials from investing in companies that do business before the government. He is believed to have acquired the bonds through a trust managed by his children.
"President Trump's assets are in a trust managed by his children," White House press secretary Anna Kelly said. "There are no conflicts of interest."
The deal, which would have left the combined company with about $85 billion in debt, immediately put pressure on Netflix bonds. According to data compiled by LSEG, they traded at $1.03 and $1.04 per dollar at the time of purchase on December 12 and 16, and also at $1.04 and $1.03 per dollar during the second wave of purchases on January 2 and 20.
On February 26, the day before Netflix withdrew its offer to buy Warner Bros., their price was $1.04 per dollar, but since then, as of Friday, it has returned to $1.03 per dollar.
Trump also purchased between $500,002 and $1 million worth of Warner Bros. bonds in two deals on December 12 and 16. At the time of purchase, they traded at 91.75 and 92 cents per dollar, respectively, and are now worth 95 cents per dollar. Had he held these bonds, they would now be in the black.
Trump began questioning the viability of the merger with Netflix days after its announcement on December 5, telling reporters that market power concentration could be an issue.
Paramount, run by the son of Trump ally and major Republican Party donor Larry Ellison, publicly announced a hostile takeover on December 8, initiating a bidding war between the two companies. Ellison personally guaranteed over $40 billion, secured by his Oracle shares, to help close the deal.
Netflix withdrew from the tender after Paramount offered a winning bid of $110 billion about two weeks ago. According to a statement from the companies on February 27, the deal with Paramount will be secured by $39 billion in new debt capital provided by Bank of America, Citigroup, and Apollo.
Trump, a real estate investor, has previously declared assets worth over $1 billion. He also has business interests in cryptocurrencies, golf clubs, and other licensing agreements. Trump's investments in companies under his administration's control could raise ethical concerns, the publication notes.
Trump's crypto project brought the family $6 billion in wealth02.09.25, 16:58 • 4354 views