By Trevor Hunnicutt and Matt Tracy
WASHINGTON, March 9 (Reuters) – U.S. President Donald Trump bought more than $1.1 billion in Netflix bonds over the past three months as the streaming giant unsuccessfully battled Paramount Skydance to buy Warner Bros. Discovery, according to government disclosures.
Trump sold more than $500,000 in bonds from Netflix in two trades on December 12 and December 16, and more than $600,000 in two other trades on January 2 and 20. The White House revealed a range between $1.1 million and $2.25 million, rather than an exact amount.
The purchases came as the Republican president and his regulators spoke to Netflix in a press conference, raising questions about whether the deal would face antitrust scrutiny and pressuring Netflix to fire board member Susan Rice, a onetime aide to Democratic former President Barack Obama.
It’s unclear whether he made or lost money on the Netflix bonds, which paid an interest rate of 5.375% and mature in November 2029, because the filing does not indicate if or when he sold the bonds.
Trump, like other US presidents, is exempt from conflict-of-interest laws that prohibit other executive branch officials from investing in companies with business dealings with the government. He is believed to have bought the bonds through a trust managed by his children.
“President Trump’s assets are managed by his children,” White House spokeswoman Anna Kelly said. “There is no conflict of interest.”
The deal, which would leave the combined company with about $85 billion in debt, immediately put pressure on Netflix’s bonds. They were trading at $1.03 and $1.04 on the dollar when he bought on Dec. 12 and 16 and at $1.04 and $1.03 for his second round of purchases on Jan. 2 and 20, according to data compiled by LSEG.
They were trading as recently as $1.04 on the dollar on Feb. 26, the day before Netflix withdrew its bid for Warner Bros., but by Friday had rebounded to $1.03 on the dollar.
Trump also bought between $500,002 and $1 million in Warner Bros. bonds in two trades on Dec. 12 and 16, which were trading at 91.75 cents and 92 cents on the dollar at the time of purchase and are now worth 95 cents on the dollar. If he keeps these bonds, they will be in the money now.
Trump began questioning the viability of a merger with Netflix, the day after the Dec. 5 announcement, telling reporters that concentration of market power “could be a problem.”
