The trading activity of members of Congress continues to be closely followed by investors. One member of Congress may have a trade that should be monitored, selling shares of a company that could be subject to a lengthy review by the Department of Justice for a merger.

• Warner Bros. Discovery stock is trading at elevated levels. What’s ahead for WBD stock?

Congressman Sells Warner Bros. Discovery Stock

The bidding war between Netflix Inc (NASDAQ:NFLX) and Paramount Skydance (NASDAQ:PSKY) to acquire Warner Bros. Discovery (NASDAQ:WBD) could finally be reaching its end, with Paramount named the winner and a DOJ decision on the deal one of the final hurdles to clear.

Congressman August Pfluger (R-Texas) isn't waiting for the DOJ to make its decision and has sold his shares in the media company.

Pfluger sold $1,000 to $15,000 in WBD stock on Feb. 10, according to data from the Benzinga Government Trades page.

Warner Bros. stock traded between $27.45 and $27.97 on the day of Pfluger's sale. The stock has gained 150% in value over the past year.

Based on the trading history of Pfluger, the stock trade wasn't as good for the congressman as it was for investors who bought in over the past year before the bidding war.

Pfluger acquired the Warner Bros. Discovery shares back on April 11, 2022, as a result of owning Discovery shares and it getting acquired by Warner Bros.

Shares traded between $23.50 to $26.26 on April 11, 2022, making the recent sale profitable for the congressman, but less so for those who owned shares at a lower price point.

What's Next for Warner Bros.

The sale of WBD stock by Pfluger comes as several Senate Democrats are urging an investigation into the funding for the acquisition, which includes several foreign entities.

Paramount also faces a lawsuit that alleges President Donald Trump personally guaranteed the merger could go to Paramount Skydance.

The merger has been heavily linked to politics from the start with a White House spokesperson previously warning bidders outside of Paramount Skydance, potentially tipping the preferred buyer by the Trump administration.

While the Department of Justice will look at the merger, the deal is expected to be approved based on the support from the White House and President Trump for Larry Ellison and David Ellison, key shareholders in Paramount Skydance.

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