Marketplace All-in-One Power and politics in the Warner Bros. deal
Dec 19, 2025
In a dramatic Hollywood showdown, Warner Bros. Discovery faces a fierce bidding war, favoring Netflix over a $30-per-share offer from Paramount. The deal may encounter heavy regulatory scrutiny under the Trump administration. Amidst messy economic data, discussions arise about the reliability of CPI reports and their impact on the market. The influence of presidential styles on major mergers is highlighted, revealing contrasting approaches between Biden and Trump that could shape future outcomes.
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CPI Data Quality Concerns
- Recent CPI data was muddled because the government shutdown disrupted key price information like rent.
- Economists warn that measurement errors in shelter could cast doubt on the rest of the inflation report.
Big-Scale Media Remapping
- The Warner Bros. bidding war reshapes U.S. media by pitting Netflix, Paramount, and legacy brands against each other.
- The outcome could redraw industry lines depending on shareholder preference and regulatory review.
Presidential Power Shapes Deal Outcomes
- Presidential interest can materially influence big mergers through public statements and interventions.
- Eric Gordon notes the Trump presidency treats deal approval as a lever of private-sector control distinct from past administrations.