Robert Reich Sounds Alarm: Trump’s Grip On Private Sector In Spotlight As Paramount, Netflix Battle For WBD Heats Up

Reich said in a recent post on Substack that while he is against Netflix acquiring WBD, he thinks Paramount’s acquisition of the media and entertainment conglomerate would be just as bad, if not worse.

• On Sunday, President Trump said that he would be involved in the decision to approve a potential merger of Netflix and WBD.
• A day later, Paramount launched a hostile bid to acquire WBD in an all-cash deal, valuing WBD at $108.4 billion.
• President Trump also made it clear this week that the sale of CNN should be a part of any deal with WBD.

Former U.S. Secretary of Labor Robert Reich on Friday warned that the control over the private sector by President Donald Trump, or any President for that matter, is at stake amid the ongoing battle between Paramount Skydance Corp. (PSKY) and Netflix Inc. (NFLX) for acquiring Warner Bros. Discovery Inc. (WBD).

Reich said in a recent Substack post that while he is against Netflix acquiring WBD, he thinks Paramount’s acquisition of the media and entertainment conglomerate would be just as bad, if not worse.

“What’s at stake in all of this is Trump’s — or any president’s — power over the private sector of the American economy,” Reich said.

Paramount Skydance shares were down nearly 0.3% in Friday’s pre-market trade, while Warner Bros. Discovery shares were up more than 1%. Retail sentiment on Stocktwits around both companies trended in the ‘bullish’ territory.

Netflix shares were up nearly 1% at the time of writing, with retail sentiment on Stocktwits around the company trending in the ‘extremely bullish’ territory.

Trump’s Involvement

On Sunday, President Trump said he would be involved in the decision to approve a potential merger between Netflix and WBD, while noting that the combined entity's market share could raise concerns, according to a Reuters report.

A day later, Paramount launched a hostile bid to acquire WBD in an all-cash deal, valuing WBD at $108.4 billion. The company said its proposal gives WBD shareholders an extra $18 billion when compared to the Netflix bid.

Trump’s Beef With CNN

President Trump also made it clear this week that the sale of CNN should be a part of any deal with WBD.

“I think any deal should — it should be guaranteed and certain that CNN is part of it or sold separately,” Trump said, according to a Bloomberg report. “I think CNN should be sold along with everything else,” he added.

WBD plans to spin off its cable channels, including CNN, before closing the transaction with Netflix.

The Ellison Connection

Reich also pointed to the Ellisons' connection to President Trump. Oracle Corp. (ORCL) co-founder Larry Ellison is a Trump ally, and his son, David Ellison, is the CEO of Paramount Skydance.

“Trump trusts the Ellisons because they pushed Paramount to settle Trump’s frivolous $16 million lawsuit against CBS and cancel Stephen Colbert — much to Trump’s delight,” Reich said.

Betting markets are leaning toward Paramount emerging as the winner in the battle for WBD with Netflix. Data from Polymarket show that 59% of bettors expect Paramount to emerge as the winner, while only 37% expect Netflix to come out on top.

PSKY stock is up 38% year-to-date, NFLX stock is up 6%, while WBD stock is up 159%.

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