Trump Invests in Netflix and WBD Bonds Following Merger Announcement
President Trump made a smart money move last December after news of Netflix and Warner Bros. Discovery’s merger hit the headlines. According to a recently released White House financial disclosure, the president invested in corporate bonds from both entertainment giants, each worth up to $1 million.
Trump’s investments include two sets of Netflix bonds set to mature in November 2029. The first batch, valued between $250,001-$500,000, was purchased on Dec. 12, followed by another purchase of the same amount on Dec. 16. Additionally, he bought two sets of Discovery Communications LLC bonds, a Warner Bros. Discovery subsidiary, which are set to mature in 2030 – each valued between $250,001-$500,000, bought on the same days as the Netflix bonds.
The merger deal between Netflix and Warner Bros. Discovery, totaling $83 billion, was announced on December 5. The deal includes $23.25 per share in cash and $4.50 in stock, but Netflix is considering a switch to an all-cash offer as their stock falls below a certain range. Meanwhile, Paramount has made a competing $108.4 billion tender offer in an attempt to disrupt the merger.
While Paramount continues its legal battle against Warner Bros. Discovery, Trump has not officially taken sides but expressed interest in overseeing the approval process for the potential merger. Despite some conflicting reports, Netflix’s co-CEO expressed surprise at Trump’s involvement, emphasizing that their discussions did not align with the information shared by the president.
Shareholders are anticipated to vote on the Netflix deal later this year, with Warner Bros. Discovery yet to set a date for its annual meeting. A special meeting may be called by shareholders owning at least 20% of WBD shares held for over a year.
It’s interesting to see Trump’s investment choices in the ever-evolving world of streaming entertainment mergers and acquisitions.
