Kushner’s role at Paramount
WASHINGTON, Dec 8 (Reuters) – Jared Kushner’s financial role in Paramount’s $108 billion bid for Warner Bros. Discovery injects the Trump family’s interests into one of the biggest media battles in years, raising concerns about whether the president’s influence could tip the balance.
Paramount Skydance on Monday launched a hostile bid for Warner Bros Discovery in a last-ditch effort to outbid Netflix and create a media powerhouse.
Paramount said its offer includes financing from Kushner’s investment firm, Affinity Partners, along with financing from Saudi and Qatari sovereign wealth funds and Abu Dhabi-owned L’imad Holding Co.
Trump told reporters Monday that he has not spoken to Kushner about Warner Bros. Discovery, adding that neither Netflix nor Paramount “are friends of mine.” A day earlier, Trump said he would be involved in a decision on Netflix’s proposal to acquire Warner Bros. studios and streaming assets.
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Suitors will face antitrust scrutiny
Both Paramount and Netflix are likely to face intense antitrust scrutiny to ensure that consumers, rivals and suppliers are not harmed by any deal, giving the government significant influence over who ultimately buys Warner Bros. Discovery.
The extent of Trump’s involvement will be another test of how far the president – whose interests in family businesses have grown while in office this year – is willing to go to break conflict of interest rules.
“If you were teaching a business school class on conflicts of interest, this would be Exhibit A,” said Nell Minow, president of Portland, Maine-based ValueEdge Advisors, adding that Trump should recuse himself from any involvement in approving the deal.
Spokespeople for the White House and Affinity Partners did not immediately respond to requests for comment.
While U.S. presidents are exempt from federal conflict of interest law, “typically what we see is presidents separating themselves from their own businesses and making a point of not getting involved with their families’ businesses so that Americans don’t question their actions,” said Jordan Libowitz of Citizens for Responsibility and Ethics in Washington.
The Justice Department’s antitrust unit will review the final deal for Warner Bros. Discovery to ensure it does not harm competition in the media market, while keeping consumer prices in check and ensuring advertisers have a fair market.
PREVIOUS QUESTIONS
Kushner served as a White House adviser during Trump’s first term and continued to be involved in Middle East policy during Trump’s second administration, although he does not have an official title.
Questions have already been raised about whether Kushner has benefited from his father-in-law’s presidency.
Trump proposed this year that the United States should clean up the war-torn Gaza Strip and develop it as an international beach resort, echoing an idea floated by Kushner, who was a real estate developer in New York before Trump’s first term.
Affinity Partners enjoyed an influx of cash from Middle Eastern investors last year as Trump sought re-election.
“The blurred line between running the government and family business interests is widening every day,” said Scott Amey, general counsel for the public interest group Project On Government Oversight.
Trump should “avoid saying or doing anything related to the potential deal with Warner Brothers, and stay away from any accusation that he is trying to help his son-in-law, who is tied to Paramount,” Amey said.
All of Trump’s multimillion-dollar interests in real estate, golf, media and other businesses are in a trust managed by his children. But he can move assets out of the trust once he leaves office, benefiting from the wealth generation occurring now.
(Reporting by Jody Godoy in New York; Additional reporting by Michelle Price; Editing by Chris Sanders and Rod Nickel)