What’s really at stake in the fight between Netflix and Paramount for Warner Bros Discovery?

Let me make it clear I’m against Netflix acquiring Warner Bros Discovery. That would concentrate corporate power in ways that harm consumers and distort American politics.

But Paramount’s acquisition of Warner Bros 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.

The back story here is that Warner Bros Discovery owns CNN, and Trump loathes CNN. He frequently complains that its coverage of him has been too negative. He’s termed those running CNN “corrupt and incompetent” and has told top aides he wants new ownership of CNN, along with changes in CNN programming and personnel.

Last week, Trump declared he would involve himself in any proposed sale of Warner Bros, and on Wednesday he said it was “imperative” that the transaction result in the sale of CNN and replacement of its leadership.

Another part of the back story involves Larry Ellison — one of the richest people in America and the largest individual shareholder of Paramount, whose son runs it, and whose operation on Monday launched an unfriendly tender offer for Warner Bros Discovery, to counter Netflix’s friendly offer.

Ellison is an ally of Trump. He has assured Trump and his top aides that if Paramount gains control of Warner Bros and CNN, it will get rid of CNN personnel whom Trump apparently detests, including Erin Burnett and Brianna Keilar. (Paramount already owns CBS.)

Paramount is portraying itself as the best bid for Warner Bros Discovery because it will have an easier time “getting regulatory approval” of the deal than will Netflix — even though Paramount is relying on financial backing from three Middle East sovereign-wealth funds (along with Jared Kushner).

Who in their right mind would give Middle East wealth funds any leverage over CBS and CNN? Answer: Trump, whose family business is already deeply dependent on financing from the Middle East.

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.

Trump loyalist flak Brendan Carr, the chairman of the Federal Communications Commission, then promptly approved the $8 billion merger of Paramount with Skydance Media.

Trump’s alliance with Larry Ellison goes back to 2020, when Ellison hosted a fundraiser for Trump at his home. According to court records, after the 2020 election, Ellison participated in a phone call to discuss how Trump’s defeat could be contested. In June 2025, he and his firm, Oracle, were co-sponsors of Trump’s military parade in Washington.

Now in charge of Paramount and its CBS division, Larry’s son, David Ellison, has gutted DEI policies at CBS, put right-wing hack Kenneth R. Weinstein into a new “ombudsman” role there, and made anti-“woke” opinion journalist Bari Weiss editor-in-chief of CBS News, despite her lack of experience in either broadcasting or newsrooms.

The FCC’s Carr has already effectively blessed the Paramount deal. What other “regulatory approval” might be needed? Theoretically, the Federal Trade Commission could object on antitrust grounds. But, as Trump did at the FCC, he planted loyalists at the FTC to do his bidding. (Pam Bondi has asserted that she and the Justice Department’s antitrust division will oversee the merger.)

This past week, the Supreme Court heard arguments about whether Trump had a right to fire an FTC commissioner (the FTC, like the FCC, is supposed to be an “independent” regulatory agency).

Chief Justice John Roberts — who believes that the framers of the Constitution intended a “unitary” executive rather than one whose authority might be shared with independent regulatory agencies established by Congress — suggested during the oral argument that Trump’s removal power should be the norm.

But if Trump’s maneuvers over Warner Bros Discovery has any lessons for the future, the independence of regulatory agencies may be more important than ever before. Otherwise, a wannabe tyrant sitting in the Oval Office can interfere in any business transaction he wishes, to enlarge his own power and stifle criticism.

• Robert Reich is a professor of public policy at Berkeley and former secretary of labor. His writings can be found at https://robertreich.substack.com/.
• Robert Reich's new memoir, Coming Up Short, can be found wherever you buy books. You can also support local bookstores nationally by ordering the book at bookshop.org