Tag Archives: antitrust

The Fight Continues to Stop the Paramount/Warner Bros. Discovery Merger

Posted on by Leave a comment
Bold red text reading 'Not so fast!' with a comic-style explosion background.

Monday brought the news that a dozen attorneys general caved to Paramount in their attempt to acquire Warner Bros. Discovery. The $111 billion deal was halted while an antitrust suit was brought by a dozen states with a trial originally set for March 2027. With opposition seemingly caved and giving up, the deal felt like a sure thing and would be closed by the September 30 deadline before a “ticking fee” began on October 1 adding costs to the mega-deal.

But, there’s still resistance.

Block the Merger, a group formed in opposition, was granted their motion to file amicus briefs regarding the deal and settlement. All amicus briefs will have to be filed on the docket no later than 12:01 am PST on September 25 and the deadline will not be extended and briefs submitted after not accepted.

A settlement hearing was set to be done today, and it was expected it would have rubberstamped the deal. But, with this latest decision by the Judge, things will be delayed a bit.

Paramount attempted to stop the approval of amicus briefs, stating a delay would “inflict massive harm” on Paramount without the filing of an antitrust action. It’s a similar action that had Paramount demanding a $1.88 billion bond from the dozen states and Writers Guild of America if their antitrust suit moved forward.

Paramount had threatened to leave California over the lawsuit by the attorneys general causing them, as well as other California elected officials, to swerve in the political game of chicken. Governor Gavin Newsom, L.A. Mayor Karen Bass (who is seeking reelection), California gubernatorial front-runner Xavier Becerra, and some unions urged California AG Bonta to settle fearing job losses from the move. In reality, the merger between Paramount and Warner Bros. Discovery will result in job losses in the 10s of thousands anyways.

But not all Democrats caved. Senator Cory Booker sent a letter to Judge Araceli Martinez-Olguin urging:

…the Court to subject the proposed consent decree to an independent public-interest review before entering it. The Court should measure the proposed remedies against the relief the States originally sought: an injunction blocking the merger altogether. The decree does not address the core of the case—that the merger is anticompetitive and will eliminate jobs.

Booker is asking for the deal between Paramount and the states to be subject to an “independent public-interest review.”

Judge Martinez-Olguin seems to be doing some due diligence asking attorneys to address by September 29 the concerns raised by Sen. Booker.

The judge challenged the AG officials in a hearing today if the settlement actually addresses the concerns they raised and the Clayton Act which is about antitrust concerns.

The judge also asked if the deal was “not the result of collusion and was more of an arm’s length process.”

California Senior Assistant AG Paula Blizzard in the meeting argued for the settlement but said that they were still prepared to go to trail starting March 2, 2027 as well as acknowledging the negative response to the settlement. Blizzard also noted that New Jersey, the state Booker represents, was part of the AGs initially suing and is part of the settlement. Blizzard pushed hard for the settlement thinking the five year time frame of it will somehow protect consumers and industry workers and “preserve competition.” Paramount’s attorneys highlighted the penalties that will keep them honest.

No matter, this isn’t a done deal after all and with a September 29 response date, Paramount gets closer to its “ticking fee” kicking in and the deal getting more expensive each day it drags on.

Writers Guild of America admit Attorneys General Left Them Out to Dry in Paramount Appeasement

Posted on by Leave a comment
An illustration of two arms engaged in a strong arm wrestling match, with the phrases 'Screwing Everyone,' 'Paramount,' 'Skydance,' and 'Democrat Attorneys General' labeled on the arms.

Today, a dozen attorneys general settled with Paramount regarding the company’s $111 billion takeover of Warner Bros. Discovery. The attorneys general received little in return but did try to make it look like they actually got something in return. In July, twelves states and the Writers Guild of America filed antitrust lawsuits in an attempt to stop the merger. The AGs have caved, along with numerous spineless unions, and now the WGA has spoken out in a rather damning statement. We put in bold the big “fuck you” to the AGs involved.

We continue to believe the merger will cause damage to writers and the industry at large. Now that the Attorneys General have settled with Paramount, however, as a nonprofit, the WGA must contend with the reality of forging ahead alone, with no backing from government enforcers, with a complex antitrust lawsuit that would cost millions of dollars to pursue through trial. Consequently, we have also settled our lawsuit with an agreement from Paramount to prohibit writer layoffs at CBS News Broadcast for 5 years, and to pay $17.5 million to our health fund along with our attorneys’ fees in the litigation.

Though we were not successful in blocking the merger, our advocacy brought more attention to the harms that this merger—and others like it—will cause. We will continue to fight the harms of industry consolidation.

As the number of outlets to sell our work to and the corresponding diversity of programming shrinks, we need industry-wide structural separation between streamers and studios in order to promote competition in programming, like the Financial Interest and Syndication Rules once required in broadcast television. We will continue to fight for these goals.

The merger is expected to cost 10s of thousands of jobs as well as negatively impact economies. Congrats attorneys general and Democrats for throwing the WGA under the bus! That’s how you continue to build support!

Details of the Paramount/Attorneys General Settlement Revealed

Posted on by 2 comments
California AG Bonta waving the white flag

California Attorney General Bonta and eleven other Democratic Attorneys General are celebrating their waving the white flag in their caving and settling with Paramount regarding its $111 billion takeover of Warner Bros. Discovery.

They’re actually celebrating a WHOLE FIVE YEAR court enforceable commitment of $1.5 billion to bolster film production and a $47.5 million fund for workers impacted by the merger as well as restrictions on how the company handles cable negotiations to help keep prices competitive.. That’s a whopping $300 million a year! Paramount has said it will save $6 BILLION a year in staffing reductions alone… that’ $47.5 million is all of 0.79% of their savings… The deal to purchase Warner Bros. Discovery is $111 billion. This commitment is a whole 1.3% of that and that’s over 5 years. It’s a sliver of Warner Bros. Discovery and Paramount’s profits.

It wasn’t just a dozen attorneys general that showed their inability to play hardball. They were joined by IATSE International President Matthew D. Loeb, Directors Guild of America National Executive Director Russell Hollander, iUNA! Local 724 Business Manager Alex Aguilar Jr., International Brotherhood of Teamsters General President President Sean M. O’Brien, and Sean Astin, President of SAG-AFTRA and Duncan Crabtree-Ireland, National Executive Director and Chief Negotiator of SAG-AFTRA.

The deal also includes:

  • 30 films a year — including 20 wide releases — in the first two years.
  • 32 films a year — with 21 wide releases — in years three, four, and five.
  • Paramount commits to release at least four independent films in each year of the commitment period.

To put this in perspective.

In 2024, Warner Bros. released 12 films in the top 200 and Paramount release 9 films for a total of 21. In 2025, Warner Bros. released 11 films in the top 200 domestic gross and Paramount released 12 for a total of 23. 2026 has 10 films by Paramount so far and 9 from Warner Bros. with another 11 still to come, currently, before the end of the year. That’s a total of 30 in 2026, so the commitment of 20 wide release films is a DECREASE from 2026 with 30 the same. There’s already 18 Warner Bros. and 12 Paramount films announced for 2027, that’s a total of 30, so their commitment is already met. 2028 already has 10 announced Warner Bros. films and 9 from Paramount, 19 of the 21 wide releases. Those numbers don’t include Warner Bros. or Paramount’s direct to video or streaming releases. The bump touted in perspective isn’t that much and has no protections after five years. To say this is a whole lot of nothing to make it seem like something is an understatement and shows how little those negotiating either understood the assignment or cared.

If Paramount fails to meet this film output requirement in any year, the company will be required to divest Miramax Studios and must pay $30 million per missed film toward the healthcare and retirement trust funds associated with the Writers Guild of America (WGA), International Alliance of Theatrical Stage Employees (IATSE), Directors Guild of America (DGA), International Brotherhood of Teamsters (IBT) and other unions, and to the National Association of Attorneys General (NAAG) for more antitrust enforcement.

Domestic Production: The $1.5 billion investment over five years also has a kicker if the company gets a U.S. federal film tax credit of at least 20%, the U.S. production would need to be increased to 20% for years one and two and 30% for the next three years from the current 5%. If a film tax credit is passed in California or New York, production investment would need to be increased to 40% of all film production being in the U.S.

California Attorney General Bonta has committed to kissing Paramount’s ass further to uncap California’s Film and Television Tax Credit.

Independent Film Fund: The company will form a fund with annual contributions of $5 million per year, for a total of $25 million. We have no doubt that money will then be siphoned into projects Paramount/Warner Bros. Discovery are involved in. It’ll be a net gain of zero.

Protection for Workers: The merged company will commit to $47.5 million in a Workforce Fund over five years for training and career development for workers fired by the merger. Paramount has stated they will have a savings of $6 billion through staff reductions alone. Workers are fucked in this one.

Cable Agreements: For five years, the negotiations for Paramount’s basic cable channels and Warner Bros. basic cable channels must be conducted independently. After five years, expect your cable rates to skyrocket or channels getting pulled. Consumers are fucked in this one.

Ongoing Monitoring: The company also agreed to appointment of an independent monitor to oversee its compliance with this agreement. We’re sure Trump and the Ellison’s friends will be taking part (or other ass-kissing individuals).

It has been reported that the board to oversee monitoring would be established within 180 days of closing, feature five individuals (established journalists active or retired with 10 years experience) and those individuals will be appointed by the company’s board of directors and feature “no more than two” “affiliated” with the same political party. If you can’t see the loopholes there and how toothless that’ll be, we don’t know what to tell you. The panel will resolves disputes over “alleged reporting bias or failure to meet agreed reporting fairness standards” as well as monitor editorial independence including from the ownership and shareholders. CNN’s already dwindling stature is getting double tapped with the buyout and then this.

This terrible deal has been blessed by lead Attorney General Bonta and the attorneys general of Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington.

The protection for consumers and workers and minimal and this was all about caving to Paramount’s threats in an election year.

Word came out over the weekend that while Bonta wanted to settled, the AGs of New York, Connecticut, Minnesota, and Nevada were hold outs but eventually came around late Sunday. Bonta “assured them” he’d hold Paramount’s “feet to the fire” that the company stuck to its commitments. those commitments that have been leaked are all job related and have nothing to protect the company from lurching CNN right and playing propaganda for the Trump administration like it has for CBS. David Ellison’s father Larry Ellison is part of a group that has invested in TikTok, a major source of news for younger individuals. Larry Ellison is a friend of Donald Trump, even having been in meetings regarding the January insurrection by Trump. As part of the deal to purchase Paramount, the Ellison’s Skydance pledged to eliminate diversity, equity, and inclusion (DEI) programs and establish a CBS News ombudsman position to review bias complaints. Paramount has come under scrutiny for its takeover of CBS News removing its editorial independence for a more right-wing bent calling into question is history of quality journalism. Paramount owner David Ellison appointed Bari Weiss as the head of the news service as well as a conservative to act as its ombudsman, an “internal advocate for journalistic integrity and transparency.” That move by Ellison has tanked ratings for CBS News and 60 Minutes so there’s a chance that he may think about doing the same for CNN.

California Governor Gavin Newsom has been pushing for a settlement as he still attempts to run for President in 2028. This should kill any chance he had of that, which was slim to start. His advocating for it again sides him with billionaire oligarchs and big business instead of the general American public. He again shows he’s a Republican wolf in Democratic sheep clothing. There’s a chance it kills Bonta’s future, though he’s likely hitching it to Newsom hoping to land a role in his never going to happen Presidency. The other AGs will be facing questions about their approval of the deal and how they can claim they’re pro-consumer or pro-worker protections.

Paramount needed the deal to be completed as soon as possible as the cost of it would begin to increase by $7 million a day if not closed by September 30. With the projected lawsuit from the AGs starting in March 2027, it’d have added about $1.3 billion to Paramount’s cost.

Paramount also was facing the changing tide in American politics. While the Presidency, House, and Senate are currently favorable to them, it’s likely the Democrats will take the House and Senate in November. While it’s unlikely they’d find a spine to stop the deal, the chance greatly increases if they were to.

The Warner Bros. Discovery deal also puts Paramount into massive debt with 49.5% equity take by Saudi Arabia, UAE, and Qatar, each of them facing issues due to the current war in Iran. Add in the volatile wealth of David Ellison and his father Larry Ellison, founder of Oracle who is also funding the deal. Paramount will likely at some point have to sell assets to pay down debt.

Remember, vote Blue No Matter to gain further appeasement and lack of accountability for oligarchs!

AGs Cave to Paramount Putting the Final Nail in Antitrust Protection

Posted on by Leave a comment
A coach in a white shirt with a whistle stands in a gymnasium, animatedly expressing the phrase 'Dollar, dollar bills ya'll'.

Hope that a dozen Democratic Attorneys General had spines were dashed this Monday as word has spread they have caved and settled with Paramount in the company’s move to acquire Warner Bros. Discovery. While full details have yet to be released, the initial details shows the settlement and focus was only on jobs, not protecting consumers or the media.

A lawsuit was launched by a dozen states to try to stop, or get consolidations, in Paramount’s purchase of Warner Bros. Discovery for $111 billion. The deal would consolidate the media further giving Paramount control over CNN along with Warner Bros.’ massive television and movie catalogue, HBO, HBO Max, DC Comics, and more. The states were joined by the Writers Guild of America.

Paramount played California and its Attorney General Rob Bonta perfectly, threatening to leave the state, threatening to cost it jobs and money, in an election year. The merger itself will cost the state money as well as jobs. It’s damned if you do and damned if you don’t situation. Paramount also was demanding a $1.88 billion bond from the states and WGA to cover possible damages if the case went to trial which was set for March 2027.

Word came out over the weekend that while Bonta wanted to settled, the AGs of New York, Connecticut, Minnesota, and Nevada were hold outs but eventually came around late Sunday. Bonta “assured them” he’d hold Paramount’s “feet to the fire” that the company stuck to its commitments. those commitments that have been leaked are all job related and have nothing to protect the company from lurching CNN right and playing propaganda for the Trump administration like it has for CBS. David Ellison’s father Larry Ellison is part of a group that has invested in TikTok, a major source of news for younger individuals. Larry Ellison is a friend of Donald Trump, even having been in meetings regarding the January insurrection by Trump. As part of the deal to purchase Paramount, the Ellison’s Skydance pledged to eliminate diversity, equity, and inclusion (DEI) programs and establish a CBS News ombudsman position to review bias complaints. Paramount has come under scrutiny for its takeover of CBS News removing its editorial independence for a more right-wing bent calling into question is history of quality journalism. Paramount owner David Ellison appointed Bari Weiss as the head of the news service as well as a conservative to act as its ombudsman, an “internal advocate for journalistic integrity and transparency.” That move by Ellison has tanked ratings for CBS News and 60 Minutes so there’s a chance that he may think about doing the same for CNN.

California Governor Gavin Newsom has been pushing for a settlement as he still attempts to run for President in 2028. This should kill any chance he had of that, which was slim to start. His advocating for it again sides him with billionaire oligarchs and big business instead of the general American public. He again shows he’s a Republican wolf in Democratic sheep clothing. There’s a chance it kills Bonta’s future and the other AGs will be facing questions about their approval.

Paramount needed the deal to be completed as soon as possible as the cost of it would begin to increase by $7 million a day if not closed by September 30. With the projected lawsuit from the AGs starting in March 2027, it’d have added about $1.3 billion to Paramount’s cost.

Paramount also was facing the changing tide in American politics. While the Presidency, House, and Senate are currently favorable to them, it’s likely the Democrats will take the House and Senate in November. While it’s unlikely they’d find a spine to stop the deal, the chance greatly increases if they were to.

The deal, which will reportedly be revealed this Monday, involves an investment of $1.5 billion for home-grown film production and protecting and creating jobs, requirements for additional production if the federal government approves tax incentives, and a $47.5 million workforce development fund and to honor existing collective bargaining agreements. Paramount grossed $28.75 billion in 2025 and Warner Bros Discovery annual gross profit for 2025 was $16.411 billion. The amount of money mentioned is nothing for the mega company and likely would include money already going to be spent in domestic production anyways.

Paramount has stated they project $6 billion in cost savings when pitching investors, which is expected to be through significant layoffs.

The deal also puts Paramount into massive debt with 49.5% equity take by Saudi Arabia, UAE, and Qatar, each of them facing issues due to the current war in Iran. Add in the volatile wealth of David Ellison and his father Larry Ellison, founder of Oracle who is also funding the deal. Paramount will likely at some point have to sell assets to pay down debt.

We’ll have more details when they’re officially released.

Trump’s DoJ Supports his Buddy David Ellison’s Bond Demand in its Antitrust Fight with States

Posted on by Leave a comment
Warner Bros. logo

The Ellison’s support of Donald Trump keeps paying off as the Department of Justice, under President Trump, have filed to support David Ellison and Paramount‘s demand for a $1.88 billion bond from a dozen states and the Writers Guild of America in the antitrust lawsuit currently going on over Paramount’s attempt to acquire Warner Bros. Discovery. On August 17, Paramount requested the bond, a federal law protects mergers and acquisition parties from “potential harm” from halting the deal for litigation.

In July, a dozen states, as well as the Writers Guild of America, sued Paramount citing antitrust concerns to stop the $111 billion deal to take over Warner Bros. Discovery. With the trial set to take place in March 2027, the deal will be delayed with a cost increase, “ticking fee,” for Paramount Skydance to complete its purchase. The price increases 25 cents per share per quarter after September 30 it’s not approved. That would add $627 million each quarter, or roughly $7 million per day and if the court case’s timeline remains what has been proposed, it’ll add about $1.3 billion to the $111 billion cost. Paramount’s bond request is an attempt to recover that increased cost. The bond would cover potential damages if the preliminary injunction under federal antitrust law is overturned.

Paramount had agreed to freeze its acquisition until the trial is completed or June 2027, whichever comes first, before filing the bond request.

Paramount and State Attorneys General set New Settlement Talks for October

Posted on by
A warning graphic featuring a skull and crossbones, with the text 'warning antitrust settlement talks occurring' in bold white letters on a black background.

In late August, Paramount and State Attorneys General were set to meet to discuss a settlement regarding Paramount’s acquisition of Warner Bros. Discovery. That meeting was canceled due to a “lack of good faith” by Paramount. California Attorney General Rob Bonta accused Paramount of breaking confidentiality and misrepresenting the discussions.

The judge in the case has instructed the parties to sit down for two consecutive days at the end of October. To prevent it from being a waste of time, the parties will submit a schedule to the judge by the end of September 15. The request to meet is pretty standard in cases and doesn’t indicate the parties are close to a settlement or it’s even in progress.

A dozen state attorneys general are suing Paramount to prevent, or get changes, to Paramount’s $111 billion purchase of Warner Bros. Discovery. The states believe that the deal violates antitrust laws and will be negative to consumers and those within the entertainment industry.

The Halloween-ish meeting is one of major dates coming up for the case.

The Supreme Court has asked the attorneys general to respond to a push by two Republican attorneys general to get the Supreme Court to stop the lawsuit. They have to respond that lawsuit by September 25.

A hearing is set regarding a $1.88 billion bond that Paramount is demanding from the states and Writers Guild of America over damage they’ll suffer due to delays of the deal.

At the end of September, a $7 million a day ticking fee for Paramount’s deal begins. That fee is why Paramount is demanding the bond from the parties suing them. The ticking fee will add $635 million a quarter to the deal and currently, the court date for the antitrust case is set for March 2027 which would add about $1.3 billion to the cost of the deal.

Paramount Meeting with Attorneys General Canceled Due to “Lack of Good Faith”

Posted on by
ace attorney canceled

Late last week, news broke that Paramount would have a meeting this Monday with the Attorneys General suing them to stop the acquisition of Warner Bros. Discovery over antitrust concerns. The meeting was ordered by the judge and an attempt at mediation before the trial which begins March 2027. That meeting has now been canceled according to California Attorney General Rob Bonta citing a “lack of good faith” in the settlement talks.

In a statement, Bonta said:

My office had a meeting with Paramount on Friday. Paramount did not maintain the confidentiality of that meeting. Not only did Paramount leak the alleged substance of settlement discussions, but they misrepresented these discussions, demonstrating a lack of good faith.

As soon as Paramount stops playing games and engages sincerely, my office is happy to meet again.

Bonta is leading the dozen attorneys general who have banded together in the lawsuit.

Paramount is attempting to acquire Warner Bros. Discovery for about $110.8 billion. They have agreed to delay the closing of the deal until as late as June 2027 as part of the lawsuit.

Bonta has previously accused Paramount of playing games with their threat to move their company out of California as well as its attempt at a $1.88 billion bond from the dozen states as well as the Writers Guild of America which is also suing.

Paramount and State AGs to Have Settlement Talks Next Week and Gavin Newsom Responds to Threats of Paramount Leaving California

Posted on by

The trial between a dozen state Attorneys General and Paramount over its attempt to acquire Warner Bros. Discovery doesn’t begin until March 2, 2027, but the parties will meet next week to discuss a settlement. After approval from the Trump administration and numerous other countries, a dozen Attorneys General sued Paramount in July in attempt to stop its acquisition of Warner Bros. Discovery for $110.8 billion. Antitrust concerns were raised by the deal which would shrink film and television distributors, have paramount control another major news source in CNN, among other issues.

Representatives from Paramount and the offices of the Attorneys General will meet on Monday to discuss the case. The meeting though is mandated under the mediation procedure, so don’t read too much into it. It’s a common step and has been mandated by Judge Araceli Martinez-Olguin.

California Attorney General Rob Bonta said about the meeting:

As I’ve said before, generally for all of my cases, I prefer to resolve disputes in the boardroom, not the courtroom. As I’ve also said, if the opposing party in litigation wants to meet in good faith to make a sincere effort to resolve the case, we’ll meet. And as I have further said, any potential discussions about the Paramount-Warner Brothers merger will be unproductive absent robust structural remedies on the table that address our concerns.

As it stands today, the proposed Warner Bros./Paramount merger will mean higher costs, less competition, lower wages, job cuts, and fewer movies and TV shows. This merger violates long-standing federal antitrust law, and we are committed to enforcing the law.

Paramount has stated they’re willing to work towards and negotiate a solution without a trial and there has been calls from other parties, some unions and theater chains, for the parties to negotiate a settlement.

Paramount has also threatened to leave California over the lawsuit, a move Bonta sees as an attempt to put pressure on the AGs and get them to settle.

Paramount needs the settlement more than the AGs. If the deal isn’t closed by September 30, a ticking fee begins at about $7 million a day, increasing the cost of the deal. The trial has been set for March 2, 2027 and will last 17 days. The delay through the trial, about 169 days, will cost the company $1.15 billion. Paramount is currently seeking a bond of $1.88 billion from the AGs as well as the Writers Guild of America who is also suing. A decision on that won’t happen until late September

Current California Governor Gavin Newsom has said he is taking Paramount’s threat to leave the state “seriously” and hopes it doesn’t happen.

And I’m of the belief they don’t want that to happen. It’s not, I don’t think, in the company’s long-term interest, but I take it seriously.

I’m concerned about the state, our reputation.

Newsom has also teased there are discussions between parties already happening regarding the antitrust lawsuit. Newsom isn’t running again for Governor due to term limits, and his time in the position will end in January 2027, months before the trial is set to begin.

Newsom is teasing a running for President in 2028. When he does, he’ll need/look for the support of Ari Emanuel, the CEO of WME Group and CEO and executive chairman of TKO Holdings, for that run. Emanuel has become a kingmaker in politics wielding a lot of influence in both parties, though it is rumored Ari’s brother Rahm is also thinking of running for President. Importantly for this, Emanuel is an ally of Paramount CEO David Ellison and has penned an op-ed in support of the deal. Those opposed to the deal would likely have a more difficult time getting his support for their political ambitions.

Hollywood Teamsters Call out Paramount over the Warner Bros. Discovery Acquisition

Posted on by

While the DGA and IATSE unions kiss Paramount‘s ass and call for a settlement between Paramount and a dozen state attorneys general in their antitrust lawsuit, the Teamster Local 399 is taking another route. Paramount is currently attempting to purchase Warner Bros. Discovery for $110 billion.

Lindsay Dougherty has released a statement to Deadline that it’s time to cut the crap.

At every step of the way, Teamsters have asked for data to show how this merger would be good for our industry, our members and domestic production. Touting worker prosperity, without commitments, while simultaneously threatening their livelihood in the press as a bargaining chip begs the question — what is in this deal for American film and television workers?

The Teamsters had previously called on the Department of Justice to block the merger. Trump’s Department of Justice approved the deal. David and Larry Ellison have been accused of supporting and being friends with Trump which resulted in the acquisition to receive little scrutiny and is reported to have ignored government lawyers who were going to recommend a challenge to the deal.

The deal at $110 billion (currently, more on that later) and heavy debt by Ellison will force the company to make cuts quickly and will likely result in massive layoffs. After the purchase of Fox by Disney, the House of Mouse laid off thousands of workers. Paramount will have to do the same, if not worse, if this deal goes through.

Paramount CEO David Ellison has promised theater owners the combined mega-studio would release 30 films a year, and has assured CNN would have editorial independence. They’ve recently said everything is on the table in hopes to settle the lawsuit from the attorneys general. Paramount’s Chief Legal Officer Makan Delrahim has stated they’re willing to work towards a resolution and there have been rumors that includes selling CNN, though having an oversight board has also been floated. Ellison has threatened to pull the company from California if the antitrust lawsuit continues.

With a trial not set for March 2027, Paramount is scrambling to cut a deal beforehand. Each day beyond September 30, the price of the deal increases $7 million a day. With a promise to put the deal on hold until June 2027 or the conclusion of the trial, the $110 billion deal could increase by about $1.3 billion.

That increasing price is only one factor as to why the deal might be in jeopardy. David Ellison’s father Larry Ellison, the founder of Oracle, has backed a large portion of the deal with about 49% of it being financed by foreign entities. Larry’s wealth is tied heavily into Oracle stock which has been volatile due to questions regarding its investment in data center infrastructure and whose fortune now relies heavily on AI succeeding. With the belief of an AI bubble growing, it’s very likely Ellison’s fortune could tumble quickly and soon. The longer the deal drags out, the more the risk increases for Ellison in the bubble popping and the deal collapsing resulting in a $7 billion payout to Warner Bros. Discovery for the deal ending.

Paramount’s CEO David Ellison Threatens to Exit California Unless the State AG Negotiates Regarding the Warner Bros. Deal

Posted on by
Veruca Salt with a David Ellison name tag

Paramount CEO David Ellison is taking another page out of the Veruca Salt playbook of stomping your feet until you get what you want. Ellison has told executives of Paramount that he will begin the process of exiting California on October 1 unless State Attorney General Rob Bonta negotiates a settlement regarding the antitrust suit regarding the takeover of Warner Bros. Discovery.

Bonta is leading a group of 12 state Attorneys General that have formed like Voltron in an antitrust lawsuit against Paramount in its attempted $110 billion (potentially $111 billion) takeover of Warner Bros. Discovery. Paramount had agreed to pause any business with the takeover until the trial ends or June 2027. The trial has been set to begin on March 2.

Paramount also faces a lawsuit from the Writers Guild of America as well as one filed by shareholders.

Bonta has released a statement regarding the threat:

In a span of weeks, Paramount agreed to halt the merger until a court decision or until June 2027, asked for a November trial, and is now back with another attempt to blackmail the state into letting an illegal deal through. Paramount has lost the plot as it continues to lose in court. It didn’t work the first time — on the eve of our July lawsuit — and it won’t work this time.

If Ellison follows through with his threat, the relocation would begin with the company’s headquarters and followed by studio jobs. The rumor or Ellison and Paramount leaving the state have swirled for some time.

Paramount faces an increased cost to its deal if it’s not closed by September and the trial alone adds about $1.3 billion to the $110 billion price tag. If the deal falls apart altogether, there’s a $7 billion termination fee. Warner Bros. Discovery can walk if the deal isn’t closed by June 4.

Paramount has been attempting to wage a PR campaign in its favor with Ellison rallying his allies to write op-eds supporting the merger. But, Paramount seems to be hurting its cause by trying to play public opinion as opposed to making concessions with the Attorneys General that may lessen their opposition.

With each volley, and the further strain on the Ellison fortune, the chances of this deal collapsing seems to increase with each day.

« Older Entries