U.S. President Donald Trump said on Wednesday he will stay out of the Netflix (NFLX.O), opens new tab and Paramount Skydance (PSKY.O), opens new tab fight over Warner Bros Discovery (WBD.O), opens new tab, a reversal from late last year when he said he would be involved in reviewing the deal, Reuters reported.
I must say, I guess I'm considered to be a very strong president. I've been called by both sides. It's the two sides, but I've decided I shouldn't be involved. The Justice Department will handle it."
Trump said in December he would have a say on whether the proposed merger between Netflix and Warner Bros should go forward, telling reporters that the market share of a combined entity could raise concerns.
"I'll be involved in that decision," Trump said at the time.
Netflix and Paramount Skydance covet Warner Bros for its film and television studios, extensive content library and franchises.
Netflix has proposed an $82.7 billion acquisition of Warner Bros Discovery. The U.S. Department of Justice is reviewing that offer and a competing, hostile bid from Paramount Skydance.
The Republican leader acknowledged the divide between the bidders in the NBC interview on Wednesday.
"There's a theory that one of the companies is too big and it shouldn’t be allowed to do it, and the other company is saying something else," he said.
"They're beating the hell out of each other - and there'll be a winner."
Paramount has said its bid would have an easier regulatory path to approval. But Warner Bros has repeatedly rejected offers from Paramount, which would wind up deep in debt to finance the transaction.
Paramount's CEO is David Ellison, whose father, billionaire Oracle (ORCL.N), opens new tab co-founder Larry Ellison, has cultivated a close relationship with Trump.
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