cross-posted from: https://news.abolish.capital/post/12605
The revelation that Jared Kushner, US President Donald Trump's son-in-law, is playing a key role in Paramount Skydance's hostile bid for Warner Bros. Discovery underscores the extent to which the current administration's open corruption "is fundamentally distorting economic and governmental policymaking at the direct expense of the interests of the American people," a watchdog group said Tuesday.
Kushner's private equity firm, Affinity Partner, is listed in a regulatory filing as one of the organizations financing Paramount's $108 billion bid for Warner Bros., which owns CNN. Ethics experts say Kushner's involvement represents another glaring conflict of interest on top of preexisting concerns about the bid, stemming from Trump's relationship with Paramount CEO David Ellison and his billionaire father, GOP megadonor Larry Ellison.
"America is devolving into a caricature of crony capitalism," Robert Weissman, co-president of Public Citizen, said in a statement Tuesday. "Factions aiming to shrink media competition are fighting over who can show the greatest fealty to Donald Trump. Paramount seems to have won the prize, bringing in presidential son-in-law Jared Kushner—whose investment vehicle is flush with Saudi funds, deposited only because of his personal relationship with Donald Trump—as a partner."
"A working antitrust policy would block the merger of Warner Bros. Discovery with one of the existing media goliaths. It would never be influenced by personal connections to the president," Weissman added. "This case underscores that the corruption pervading the Trump administration isn’t just about making Trump and his family and hangers-on ever richer. That corruption is fundamentally distorting economic and governmental policy making, at the direct expense of the interests of the American people.”
Sen. Chris Van Hollen (D-Md.) said that "the Warner Bros. merger was already suspect, but now Trump’s family is getting in on the act."
"Paramount already had deep ties to the White House," he added, "now Trump's family will directly profit if they win."
Asked Monday about Kushner's financing role, Trump said he has "never spoken to him about it."
Paramount, which the Trump administration reportedly favored to take over Warner Bros., announced its bid for the company days after the streaming behemoth Netflix and Warner Bros. leadership reached an $83 billion acquisition deal. The president immediately criticized the Netflix agreement and pledged to intervene in the federal review process.
"The blurred line between running the government and the family's business interests is expanding each day," Scott Amey, general counsel with the Project On Government Oversight, told Reuters.
Antitrust experts and advocates have argued that both of the proposed mergers are likely illegal and should be blocked.
Matt Stoller, research director at the American Economic Liberties Project, said Monday that either merger "would further deepen the media consolidation crisis that is eroding our creative economy and freedom of expression."
"Paramount specifically would be well-positioned to manipulate the news to please the president, which David Ellison made clear it intends to do in an interview earlier today," said Stoller. "There is a reason that policymakers and workers in Hollywood have come out against each iteration of this deal. Rather than allowing further consolidation in the industry, policymakers must reregulate the market with prohibitions on vertical integration.”
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"crony" capitalism
