U.S. Senator Bernie Sanders on Wednesday condemned President Trump's son-in-law Jared Kushner's involvement in Paramount Skydance's hostile takeover of Warner Bros., arguing that it signaled Trump's attempt to interfere in media deals and amounted to authoritarianism.
Sanders pointed out that a few giants already control most of the media in the United States, and Trump wants to make things worse. His desire for his wealthy allies, son-in-law, and a consortium of Saudi Arabia, Qatar, and the UAE to acquire Warner Bros. is authoritarianism, not democracy.
The controversy surrounding the acquisition of Warner Bros. has become one of the top headlines in both the political and business circles of the United States recently. Last week, streaming giant Netflix... Netflix announced it will acquire content production company Warner Bros. for $83 billion, and the deal has been approved by Warner Bros.' board of directors.
However, Netflix 's acquisition proposal is widely seen as exacerbating industry monopoly issues, and many US lawmakers and government officials oppose the deal. Trump also publicly stated last Sunday that he would participate in the review of Netflix 's acquisition of Warner Bros., and said that Warner Bros. must sell CNN.
Then, on Monday, Paramount Skydance, the company where the son of a Trump ally works, launched a hostile takeover bid for Warner Bros., offering a valuation of $108.4 billion for the company. Paramount Skydance received funding from Middle Eastern investors including billionaire Larry Ellison, private equity firm RedBird, and the Saudi Public Investment Fund.
Hollywood in collapse
Warner Bros. is now facing a dilemma. Whether it is acquired by Netflix or Paramount Skydance, it may touch a nerve with regulators. The significance of this deal goes beyond the commercial level.
Oscar-winning film producer Tom Nunan said people were very disappointed with both acquiring companies. Another award-winning producer also said that Hollywood was shocked and on the verge of collapse.
For those working in the US entertainment industry, Netflix's acquisition could mark the end of the era of traditional theatrical releases, as the platform places greater emphasis on online distribution, and Netflix co-CEO Ted Sarandos stated earlier this year that theatrical releases are an outdated idea. Furthermore, Netflix will also impact compensation models across the entire industry.
Paramount Skydance's acquisition represents the other extreme, as it implies that Hollywood will be forced to cater to the Trump administration. A veteran entertainment executive even warned that Kushner's involvement practically signifies that the deal is done.
Trump said on Wednesday that he wants Warner Bros. to sell CNN and that it is a must. Paramount executive David Ellison reportedly promised Trump that if Paramount successfully acquires Warner Bros., he will implement major personnel changes at CNN.
The relationship between the White House and CNN has always been tense. Trump once commented that the current head of CNN is either corrupt or incompetent.
(Article source: CLS)
