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FCC Commissioner Anna M. Gomez sides with Disney in its Battle with the FCC Over Censorship

In late April, the FCC again went on the offensive against Disney and ABC over comments made by Jimmy Kimmel on his late night show. The FCC has ordered its eight owned-and-operated stations to renew their broadcast licenses ahead of schedule. That’s not currently due to at least 2028. It’s another attack by this current administration against free speech and an attempt to further mold the media to be friendly to not just President Trump and his administration but to Republicans and the right as a whole (as if they could be any more).

While there has been some support, a big one has come from FCC Commissioner Anna Gomez, the panel’s lone Democrat. Gomez believes the goal of the FCC under Chairman Brendan Carr is to pressure networks into self-censorship. Disney already has settled with Donald Trump, paying $15 million in a defamation lawsuit that was launched in 2024.

What Disney and ABC are facing is not a series of coincidental regulatory actions but a sustained, coordinated campaign of censorship and control, carried out through the weaponization of the FCC’s authority as a federal regulator and aimed at pressuring a free and independent press and all media into submission,” Commissioner Gomez wrote.

Gomez sent a letter, which you can read below, to Disney Chief Executive Officer Josh D’Amaro on Monday describing her opinion of what’s going on and the pressure campaign against Disney and others.

The letter traces the censorship campaign from its origins in the settlement of a baseless defamation lawsuit brought against ABC, through a series of investigations into ABC’s debate moderation, diversity programs, and The View, and culminating in an unprecedented early license renewal order against all eight ABC-owned stations, which Commissioner Gomez has called the most egregious First Amendment assault this FCC has taken to date. Gomez is calling on Disney to fight the attempted censorship by the FCC.

Gomez goes further calling out a “stark double standard” at the heart of the FCC’s enforcement posture as well as raising serious questions about the FCC’s conduct in other investigations.

Gomez also has concerns over the FCC’s investigation into Disney’s diversity, equity, and inclusion programs, noting that the agency’s own rules on this topic are limited to recruitment outreach and say nothing about internal corporate policies.

Federal Communications Commission
Washington, DC 20554

OFFICE OF
COMMISSIONER GOMEZ

May 11, 2026
Mr. Josh D’Amaro
Chief Executive Officer
The Walt Disney Company
RE: This Administration’s Campaign of Censorship and Control Against Disney and ABC

Dear Mr. D’Amaro,

I am writing because The Walt Disney Company has once again been made a target by this FCC, and the record of its actions against your company demands a clear accounting.

What Disney and ABC are facing is not a series of coincidental regulatory actions but a sustained, coordinated campaign of censorship and control, carried out through the weaponization of the FCC’s authority as a federal regulator and aimed at pressuring a free and independent press and all media into submission.

You are not the first target of this campaign, and you will not be the last. But Disney’s experience is, by now, the most documented, and it is worth laying it out plainly.

This Administration’s campaign against Disney and ABC began in earnest when ABC agreed to pay $15 million to settle a baseless defamation lawsuit brought by the incoming President of the United States. Whatever the legal calculations behind that decision, its effect was immediate and unmistakable. It told this Administration that pressure works. It told every other company watching that capitulation was an option. And it opened the door to every action that has followed.

That settlement did not buy you peace. It only bought you time. Disney’s experience since then has made one thing undeniable for any company facing the same pressure. You cannot buy this Administration’s favor. For the right price, you can only borrow it. And the price always goes up.

Since that settlement, the FCC has pursued your company on multiple fronts, none of which reflect legitimate regulatory enforcement.

In late 2024, a politically motivated outside organization filed a complaint with the FCC alleging that ABC violated the FCC’s news distortion policy in its coverage of the presidential campaign, specifically the presidential debate ABC journalists moderated. Agency staff reviewed that complaint and dismissed it in January 2025, finding it contrary to the First Amendment and that it failed to even assert a set of facts that, if true, would violate FCC rules. See, Preserving the First Amendment, GN Docket No. 25-11, released January 16, 2025.
(https://docs.fcc.gov/public/attachments/DOC-408880A1.pdf)

This FCC revived it anyway, for reasons that have nothing to do with the merits and everything to do with politics. It is unclear to what degree this FCC has even seriously pursued that complaint, and I suspect there will be no end in sight for that investigation because the process is the punishment and keeping it open serves that goal.

Then, in March 2025, the FCC opened an investigation into Disney and ABC’s diversity, equity, and inclusion programs, directing the Enforcement Bureau to demand a full accounting of your company’s diversity policies and practices. The FCC’s broadcaster equal employment opportunity (EEO) rule is limited to requiring broadcasters to conduct broad, inclusive recruitment outreach. 47 C.F.R. § 73.2080.

This narrowly tailored rule resulted from significant and hard fought litigation over years that addressed both the scope of the Commission’s authority and the substantial intrinsic dangers that arise from the Commission using its licensing authority to enforce its views of the “correct” racial or gender balance in employment practices, dangers this FCC’s current course of action exemplifies precisely. As the D.C. Circuit stated when vacating the FCC’s prior EEO rule as unconstitutional, “the FCC is not the Equal Employment Opportunity Commission . . . and a license renewal proceeding is not a Title VII suit” because the agency’s authority is limited by its statutory remit. Lutheran Church-Missouri Synod v. FCC, 141 F.3d, 344, 354 (D.C. Cir. 1998) (citing Bilingual Bicultural Coalition on Mass Media, Inc. v. FCC, 595 F.2d 621, 628 (D.C. Cir. 1978)) (“The only possible statutory justification for the Commission to regulate workplace discrimination would be its obligation to safeguard ‘the public interest,’ and the Supreme Court has held that an agency may pass antidiscrimination measures under its public interest authority only insofar as discrimination relates to the agency’s specific statutory charge.”). See also, Title VII of the Civil Rights Act of 1964, 42 U.S.C. §§ 2000e–2000e1.
And in its subsequent decision vacating the Commission’s revision of its EEO rule, the court went further and described the inherent coercive danger of investigations on alleged discrimination by licensing agencies such as the FCC. MD/DC/DE Broadcasters Ass’n v. FCC, 236 F.3d 13, 19 (D.C. Cir. 2001) (Investigation by the licensing authority is a powerful threat, almost guaranteed to induce the desired conduct. [See Chamber of Commerce v. Department of Labor, 174 F.3d 206, 210 (D.C. Cir. 1999)] (noting that agency “is intentionally using the leverage it has by virtue solely of its power to inspect. The Directive is therefore the practical equivalent of a rule that obliges an employer to comply or suffer the consequences; the voluntary form of the rule is but a veil for the threat it obscures”)).

The FCC’s attempt to usurp control over internal corporate decision-making through its limited authority requires reaching for legal power that the statute, agency rules, and the applicable case law simply do not provide. Courts have repeatedly and decisively determined that actions such as the FCC’s current investigation are unconstitutional. Despite the extraordinary overreach this investigation represents, it is my understanding that Disney has engaged with the agency in good faith and timely responded to the Commission’s Letter of Inquiry and Supplemental Letter of Inquiry by producing over 11,000 pages of responsive documents to date. See, KTRK Television, Inc. and American Broadcasting Companies, Inc, Petition for Declaratory Ruling Under Section 315(a) of the Communications Act of 1934, as Amended, at page 4, fn. 17, filed May 7, 2026 (KTRK Petition). (https://www.fcc.gov/ecfs/document/10507899614175/1)

Last year, this Administration tasked the FCC to escalate its campaign against ABC by targeting Jimmy Kimmel. The goal was clear: use regulatory pressure to force his removal from the air and send a message to every other broadcaster about the cost of critical coverage. Under that pressure, Disney pulled Kimmel off the air. But the public outcry from local communities across the country and democracy watchers around the world was immediate, broad, and impossible to ignore. Viewers and community voices from across the political spectrum and every corner of our great nation, including small towns, large cities and everything in between, made themselves heard, and that pressure forced Disney’s hand to have Kimmel reinstated.

What that moment revealed is something with which this Administration has never fully reckoned. When the government tries to dictate what people can watch and who is allowed to speak, the American public will fiercely defend their First Amendment rights, the most fundamental freedom we have in this country.

Earlier this year, the FCC opened yet another investigation into ABC, this time targeting The View over an alleged equal opportunities violation stemming from an appearance by a political candidate. To facilitate these investigations, this FCC’s Media Bureau issued new interpretive guidance on the equal opportunities rule that upended decades of settled agency precedent, rewriting the rules of the road specifically to create new exposure for broadcasters it wanted to target. See, FCC’s Media Bureau Provides Guidance on Political Equal Opportunities Requirement for Broadcast Television Stations, DA 26-68 (January 16, 2026) (Media Bureau PN).

The pattern by now is familiar: a complaint is filed, an investigation is opened with maximum visibility, and the process itself becomes the pressure.

This Commission has repeated that same pattern across multiple companies it regulates. These investigations are often announced with much fanfare, pursued selectively against perceived critics of this Administration, and most are destined never to be brought to any enforcement conclusion that could face judicial review. That is because the threat is the point. As sitting Supreme Court Justice Neil Gorsuch recently reminded us by invoking Justice Thurgood Marshall: “The value of a sword of Damocles is that it hangs, not that it drops.” First Choice Women’s Res. Ctrs., Inc. v. Davenport, 598 U.S. _ (April 26, 2026), No. 24-781.

And the double standard could not be more glaring. This FCC has trained its enforcement apparatus on ABC while staying conspicuously silent about other broadcasters operating under the exact same rules, in the same markets, that aired interviews with political candidates without filing notices and received no inquiry, no letter, and no investigation whatsoever. See, KTRK Petition at pp. 37-38.

Meanwhile, in what appears to be a form of entrapment, the Commission selectively pressured ABC affiliates in Texas to file late equal opportunities notices while offering them amnesty for doing so, then used the resulting inconsistency that the Commission helped create as evidence against your station, which received no such offer. The facts as described by Disney, if true, are disturbing. In 2002 the FCC’s Media Bureau issued a declaratory ruling that The View is a bona fide news interview program exempt from the equal opportunities provision. See, KTRK Petition at pp. 27-28. This January the FCC’s Media Bureau issued a Public Notice creating confusion over longstanding guidance on how the bona fide news exemption from the Commission’s equal opportunities rule should be applied and included an invitation for shows to file petitions to obtain clarity. See Media Bureau PN at p 4. The Commission appears to have followed this up with actions that helped create the facts on which it relied as a basis for its investigation of KTRK Television (KTRK), the Disney owned and operated ABC broadcast station in Houston Texas. Specifically, it is alleged that on February 11, 2026, following James Talerico’s February 2, 2026, appearance on The View, the FCC sent a Letter of Inquiry to KTRK asking whether it took the position that The View qualified as a bona fide news interview program and had placed a record of James Talerico’s appearance in its political file. See, KTRK Petition at pp. 2-4. KTRK timely responded that The View qualifies as a bona fide news interview program and it had not placed such a record in its political file. Id. The Commission then issued a Supplemental Letter of Inquiry (SLOI) on March 26, 2026, based, at least in part, on the assertion that KTRK’s position was contradicted by the positions taken by 19 of ABC’s affiliated stations in Texas, as they all had placed such records in their political files. Id. The SLOI allegedly failed to note, however, that those filings were made more than two weeks after the appearance at issue and in response to the FCC’s direction that making such filings would protect them from an enforcement action. Id. See also, FCC public inspection files (https://publicfiles.fcc.gov/ ) to view publicly filed records of James Talerico’s February 2, 2026 appearance on The View by ABC Texas affiliates (e.g., WFAA (Dallas–Fort Worth) filed 2/20/2026; KTXS-TV (Abilene/Sweetwater) filed 2/20/2026 and KVII-TV (Amarillo) filed 2/20/2026).

If true, that is a government agency abusing its authority to punish speech it dislikes while protecting speech it favors.

In what is now the most egregious assault on the First Amendment this FCC has taken to date, the agency has directed Disney’s eight ABC-owned local television stations to file for early license renewal, a mechanism that has not been invoked in more than half a century. Some of these licenses were not set to come up for renewal for nearly five years. Using the licenses of individual local stations as leverage against a parent company is an extraordinary and dangerous misapplication of this agency’s authority. The FCC licenses local broadcast stations, not national networks, and every action taken against these stations is, in truth, an action taken against local communities and against press freedom.

Ultimately, this effort to punish and intimidate your company will not succeed. The FCC’s internal process will be lengthy, and should it produce an outcome unfavorable to your stations, Disney will have every right to challenge that outcome in federal court, a process that could take years. Throughout all of it, Disney’s stations keep their licenses.

Disney has been here before. When the state of Florida came after the company with the full weight of its government, Disney fought back and won. The same resolve that carried that fight can carry you in this one. The First Amendment does not belong to this Administration to grant or withhold. It belongs to the public, to the press, and to every broadcaster willing to defend it.

Your stations serve real communities, and the audiences who depend on ABC extend far beyond those eight licenses. Your journalists do work that matters to millions of Americans across the country, and the viewers who rose up to defend Jimmy Kimmel are the same viewers who will stand up again if this FCC follows through with its threat. I am encouraged to see that Disney is choosing courage over capitulation. The fight ahead may not be easy, but the law, the facts, and the public are on your side. This is a fight worth having, and one that I am confident you will win.

I am committed to using every tool available to me as a Commissioner to shine a light on what this FCC is doing to curtail press freedom and to hold this process to account at every step.

Sincerely,

Anna M. Gomez
Commissioner
Federal Communications Commission

The FCC Again Threatens to Censor Disney and ABC over Kimmel while Paramount Retaliates over a Stand Against the Acquisition of Warner Bros. Discovery

Mickey censored

When it comes to journalism, it’s been ominous for a while. Venture capital and private investment has gutted news services, newspapers have shut down and folded, and there’s been attacks coming from all sides in an attempt to censor and reign in their right and duty to report the news freely.

Once again, the FCC and its chair Brendan Carr are attacking Disney and ABC over comments Jimmy Kimmel made on his late night show. It involves a review of Disney’s broadcast licenses, ordering its eight owned-and-operated stations to renew their broadcast licenses ahead of schedule. That’s not currently due to at least 2028. Via Business Insider:

ABC was directed by the FCC to file early renewals for its licensed TV stations by May 28, or within 30 days. This order applies to the eight affiliate stations owned by ABC, including those in New York, Los Angeles, and Chicago.

Disney has confirmed that the company had received the FCC’s order about the accelerated license review.

Kimmel made a joke on his show saying First Lady Melania Trump had the “glow of an expectant widow,” explained as a reference to the age difference between her and her much older husband, President Trump. The comment was made before Saturday’s reported attempted attack during the White House Correspondents Dinner. That failed attack has been used by the right to attack the left claiming their rhetoric incites violence. First Lady Melania Trump took to social media demanding ABC fire Kimmel over the joke that they’re branding a threat and calling it hateful rhetoric. Kimmel defended the joke on Monday’s episode. He stated:

It was a very light roast joke about the fact that he’s almost 80 and she’s younger than I am. It was not by any stretch of the definition a call to assassination.

Business Insider reports that the FCC under Carr is investigating Disney for its DEI practices. From a filing:

The FCC has been investigating Disney’s ABC stations for possible violations of the Communications Act of 1934 and the FCC’s rules, including the agency’s prohibition on unlawful discrimination

The right has made it a mission to further mold the media to fit their worldview. After its purchase by Paramount, CBS News has been scrutinized for its editorial shift right. The current attempt by Paramount to purchase Warner Bros. Discovery would also give it control of CNN, another popular destination for news. Paramount’s David Ellison’s father also has a part of TikTok, a major news source for younger generations.

But beyond what its done to CBS, Paramount has shown its teeth towards individuals willing to scrutinize and speak against its purchase of WBD, teasing a possible era of blacklists and retribution if it succeeds.

The AV Club has a report that a columnist at The Ankler who has spoken out against the acquisition was blacklisted by Paramount. We too have been vocal against the media consolidation, so if there is a blacklist, please add us.

Richard Rushfield recently attended CinemaCon and was handing out swag, a pin that read “Block the Merger.” Paramount didn’t appreciate that and pulled its advertising from The Ankler and talent was instructed to not speak to its reporters. It’s absolutely a canary in the coal mine, and another example of why this merger should not go through.

Is this a future we can expect for sites like ours? We have been vocal against the megamerger but also have written some not flattering news concerning DC Comics which would be owned by Paramount under this deal. Will we see retaliation if another scandal were to hit the publisher and we covered it?

It’s not hard to see all of this as a pattern, and an ominous one for independent journalism, even journalism that focuses on entertainment.

Newsarama has recently seen its final staffer exit, sunsetting what was a major entertainment news site, officially killed off by its parent company Future PLC after initially being folded into GamesRadar.

It’s all reasons for the comic, television, video game, tabletop game, toy, movie industries, and more to support independent journalism that’s not at the mercy of large corporations looking to profit and maximize clicks and views or the mercy of VCs looking to suck money from their investment like the capitalist vampires that they are.

There’s a war being waged against the fourth estate and it’s not just a moment calling for solidarity but a moment to lift up the voices who are free to challenge, criticize, and report, exactly what journalism should be doing.

Nintendo Sues the Trump Administration Over Tariffs

Nintendo has joined hundreds of corporations suing the Trump Administration to get back tariffs paid.  Those tariffs were deemed illegal by the U.S. Supreme Court towards the end of February.

Nintendo is an interesting court case as it not only can show “injury” from the tariffs paid, but it not only raised prices, it delayed pre-orders for the Switch 2.

Nintendo is asking for a refund of the IEEPA duties paid along with interest, reasonable attorney fees, and granting any more relief that might be “just and proper.”

The question still remains if consumers will see any relief from this whether in the form of getting money back, especially those who paid tariffs directly, or in lower retail prices.

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Customs and Border Protection Says it Can’t Comply with the Court’s Tariff Refund Order

Towards the end of February, the Supreme Court struck down tariffs enacted by the Trump administration. The vote was 6-3 and generally the justices ruled that Trump exceeded the powers given to him by Congress under a 1977 law providing the President the authority to regulate commerce during national emergencies that are due to foreign threats. What was undecided at the time was what should happen to all of the money paid already due to the tariffs.

The U.S. Customs and Border Protection has told a Court of International Trade judge that it isn’t able to comply with an order to begin refunding the reciprocal tariffs. The CBP said in their response that the estimated amount related to the tariffs is “approximately $166 billion.” According to the filing over 330,000 importers have made over 53 million entries.

The court response, which you can read below, involves the CBP process and when things are go through it, focusing on “liquidation.” “Liquidation” is the finalization of the total tariff amount owed. Senior Judge Richard Eaton had ordered the CBP to liquidate unprocessed entries and reliquidate those that have been processed but not finalized.

The refund that has been ordered focuses on shippers who paid the IEEPA tariffs on imports that have not been finalized via liquidation, a process that can take around 300 days. You can read some thoughts on the complexity of the situation here.

The Trump administration has been sued by hundreds of corporations looking to be refunded for the tariffs that have been paid under the IEEPA.

What also remains unanswered is if consumers will see any relief either in money returned or retail prices going down. Corporations passed along the increased cost of doing business to consumers who saw price increases at the store and some have been hit with tariffs directly when ordering internationally.

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Pokémon responds to the White House using Pokopia to Promote MAGA

Because we live in the dumbest timeline, The Pokémon Company has released a statement regarding the White House using the Pokopia font generator to promote “Make America Great Again.”

The Pokémon Company of course distanced itself stating:

We are aware of recent social content that includes imagery associated with our brand. We were not involved in its creation or distribution, and no permission was granted for the use of our intellectual property. Our mission is to bring the world together, and that mission is not affiliated with any political viewpoint or agenda.

The administration has regularly used pop culture to promote their agenda, often against the wishes of the creators behind it.

Hasbro is Suing the Government Over the IEEPA Tariffs

Hasbro

Hasbro has joined hundreds of companies suing the Federal Government to get refunds for the tariffs paid due to President Trump’s “emergency trade measures.” Those tariffs were deemed illegal by the U.S. Supreme Court towards the end of February.

Hasbro did not disclose how much it has paid in IEEPA tariffs but it is requesting refunds along with interest. There’s more than 2,000 similar cases filed in the U.S. Court of International Trade since April.

In July 2025, Hasbro’s CEO warned that prices could rise due to the tariffs. Then did so in the second half of the year though it didn’t dent sales. Revenue for the company jumped 31% to $1.45 billion beating expectations. Its profit was $201.6 million for the last three months of 2025. The increase in retail prices varied resulting in an additional 10% to 20% to the cost of items.

At the end of February, the Supreme Court struck down the tariffs in a 6-3 vote. An estimated $200 billion has been paid due to them. Tariffs are a tax that is put on goods imported into the country. It could be raw materials or finished products.

In a report it was estimated that 90% or more of the tariff’s cost was paid by US firms and consumers with the average tariff in 2025 going from 2.6% to 13%. Corporations are unlikely to eat all of that cost, so it is then passed along to consumers in the form of paying for the tariffs directly or by increased prices.

In a recent order, it was increased by a little over $5 for me, about 10% of the pre-tax price of the item which was a toy. Retailers have had to raise their prices to consumers with many making statements they would be doing so.

There are numerous lawsuits against the government and Trump administration by corporations to recoup the money paid for tariffs, it’s unknown how this Supreme Court decision will impact that.

It’s also unknown if consumers will see any relief in prices due to this decision. It’s not common for corporations to lower prices once they have been raised, so it’s possible the increase retail prices will remain, especially in a continuing uncertain economic outlook.

GAMA releases a Statement regarding the Supreme Court’s Decision to Strike Down IEEPA Tariffs

GAMA: The Tabletop Game Association (GAMA)

On Friday, the US Supreme Court struck down President Trump‘s tariffs set under the International Emergency Economic Power Act. What this means for all of the tariffs already collected is unknown and the impact on retail prices are also unknown.

The decision was praised by numerous publishers and organizations within the geek and entertainment space. GAMA: The Tabletop Game Association released the below statement yesterday:

GAMA: The Tabletop Game Association applauds today’s decision by the U.S. Supreme Court which struck down the tariffs imposed by President Donald Trump under the International Emergency Economic Powers Act (IEEPA), ruling that he had exceeded his authority in doing so.

Trump promptly announced he would re-impose the tariffs through other methods.

The Supreme Court issued its 6-3 decision in the case of Learning Resources Inc. et al v Trump, which had been consolidated with the case Trump v V.O.S. Solutions. GAMA had filed an amicus brief in the case in support of Learning Solutions and V.O.S., challenging this presidential overreach. GAMA argued that in the IEEPA, Congress had never intended to delegate such sweeping economic powers to the executive branch. 

In his majority ruling, Chief Justice John G. Roberts Jr. agreed, writing: “The president asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration, and scope. In light of the breadth, history, and constitutional context of that asserted authority, he must identify clear congressional authorization to exercise it.”

GAMA is interested in hearing from any members who would like to share their stories of how the illegal IEEPA tariffs impacted their business, so we can maintain a record of how the tariffs have hurt our industry. Click here to contact the GAMA Communications Team if you are interested. Please let us know if you are also willing to have your story shared on our social channels and in advocacy communications, which will help us put faces and names to the harm these tariffs have done and help amplify the message that Congress needs to take action against future efforts to impose similar tariffs. 

It may be possible for companies that paid tariffs to apply for refunds. U.S. Treasury Secretary Scott Bessent acknowledged last September on NBC’s “Meet the Press” that the agency would issue refunds if ordered to do so by the Supreme Court. GAMA is researching how businesses in our industry that paid tariffs could apply for refunds and will share information as we have it. 

GAMA’s support for Learning Resources and V.O.S. Solutions stems from a shared commitment to constitutional governance and economic stability. The unchecked use of IEEPA to alter tariffs threatened not only businesses but the very principle of separation of powers enshrined in Article I of the U.S. Constitution. 

GAMA continues to monitor the Trump administration’s actions regarding tariffs.

The Supreme Court Strikes Down Trump’s Tariffs

The economic situation has been tenuous at best and during President Trump’s second term, even more frightful with his focus on a tariff war with most of the world. The Supreme Court on Friday struck down those tariffs which Trump enacted through executive order. The vote was 6-3 and generally the justices ruled that Trump exceeded the powers given to him by Congress under a 1977 law providing the President the authority to regulate commerce during national emergencies that are due to foreign threats.

What is still undecided is what should happen to all of the money paid as tariffs already, an estimated $200 billion.

Tariffs are a tax that is put on goods imported into the country. It could be raw materials or finished products.

In a report it was estimated that 90% or more of the tariff’s cost was paid by US firms and consumers with the average tariff in 2025 going from 2.6% to 13%. Corporations are unlikely to eat all of that cost, so it is then passed along to consumers in the form of paying for the tariffs directly or by increased prices.

In a recent order, it was increased by a little over $5 for me, about 10% of the pre-tax price of the item which was a toy. Retailers have had to raise their prices to consumers with many making statements they would be doing so.

There are numerous lawsuits against the government and Trump administration by corporations to recoup the money paid for tariffs, it’s unknown how this Supreme Court decision will impact that.

It’s also unknown if consumers will see any relief in prices due to this decision. It’s not common for corporations to lower prices once they have been raised, so it’s possible the increase retail prices will remain, especially in a continuing uncertain economic outlook.

Paramount Skydance Launches a Hostile Bid for Warner Bros. Discovery

Warner Bros.

The move was telegraphed with their press releases when the deal between Netflix and Warner Bros. Discovery was announced, Paramount Skydance has launched a last-ditch effort to win out.

On Friday, a deal was announced where Netflix would purchase the Warner Bros. part of Warner Bros. Discovery for about $82.7 billion. Netflix would purchase the Warner Bros. film and television studios, HBO, and HBO Max. That leaves out Warner Bros. Discovery’s cable television properties which currently would be spun out into their own company.

Paramount is offering $30 a share, about $2.25 more per share than Netflix’s offer. That deal includes financing from Affinity Partners, the investment firm run by Jared Kushner, President Trump’s son-on-law as well as multiple Middle Eastern government-run investment funds, as well as the Ellison family.

Paramount’s argument is that they would be purchasing all of Warner Bros. Discovery, while Netflix would be just purchasing part of it. It also argues the deal is in the “best interest of the creative community, movie theaters, and consumers.” There is concern of Netflix, the top streaming platform purchasing HBO Max, the third largest, and merging the two.

But, if Paramount Skydance succeeding, it would have its own consumer/antitrust issues as they would consolidate television and have a greater market share than Walt Disney Co.

There’s further concerns that the Ellisons have imposed a more conservative bent over their recent purchases including the appointment of conservative management over CBS News.

The x-factor in the deal is how much President Trump’s government weighs in on the deal. There are concerns from the creative community as well as on behalf of consumers that the Netflix purchase would have a negative effect. Add in that Paramount Skydance, and its owners the Ellisons are close with the Trump administration. There is the possibility that “the fix is in” and the government could oppose Netflix’s plan to throw the deal to the Ellisons by default, especially if Trump’s son-in-law is part of it.

Warner Bros. Discovery and Netflix Cut a Deal. The Least Terrible of Options?

Netlfix

In September, rumors swirled that Paramount Skydance and the Ellisons were looking to purchase Warner Bros. Discovery. WBD was in the process of splitting back into two distinct companies. From there, more suitors entered the picture with Netflix and Comcast both stepping in with their own proposals. Netflix has (currently) won the process, announcing in a press release the details of the deal.

Warner Bros. Discovery and Netflix have announced an agreement that would see a deal involving cash and stock, at $27.75 per WBD share ($23.25 in cash and $4.50 in shares of Netflix stock per WBD share). The total deal is about $82.7 billion and expected to close in the third quarter of 2026.

In the announcement, Netflix highlighted franchises and shows such as The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz, and the DC Universe. It also highlighted Casablanca, Citizen Kane, Harry Potter, and Friends. It was believed Netflix was pursuing the purchase as its future was unclear when it came to franchises it controls. Stranger Things‘ final season recently released, and beyond K-Pop Demon Hunters, big blockbusters are elusive. WBD would give Netflix a deep bench to add to its streaming platform as well as spin out into new films and series.

The deal is far from done as it would need regulatory approval and there’s already alarms being raised with the word “monopoly” being thrown around. It would have Netflix acquiring HBO Max, which is reported as the third largest streaming service, with Netflix being first. In the announcement it mentioned how the new properties would be available to Netflix subscribers playing into rumors that Netflix would fold HBO Max into its streaming service, consolidating that market and leaving fewer choices for consumers.

While it would “save” consumers money in that they wouldn’t need to purchase two streaming services, it would also be a “captured” audience allowing to Netflix to eventually raise their prices claiming the “value” with the added content. Netflix increased the cost to its subscriptions earlier this year after raising prices in 2024 when it eliminated its cheapest ad-free option.

Warner Bros. Discovery’s global networks division, Discovery Global, would still spin out into a new publicly-traded company, so Netflix’s deal isn’t for all of WBD.

While the boards of both Netflix and WBD voted “unanimously” to approve the deal, the Ellisons and Paramount Skydance are not giving up and have been going with a full court press to sour the deal.

Paramount claimed the deal was unfair and tilted towards Netflix:

…sales process has been tainted by management conflicts, including certain members of management’s potential personal interests in post-transaction roles and compensation as a result of the economic incentives embedded in recent amendments to employment arrangements.

The deal is the best of the worst. It consolidates the media landscape further, always a loss for consumers and individuals in the industry who will have fewer choices and options. Mergers tend to lead to mass layoffs to help with savings, decreasing the debt load by decreasing operational costs.

But, there are some bright spots. DC Comics, which would be picked up by Netflix in the deal, is likely safter with Netflix in charge. Netflix has made it clear it’s looking for properties and franchises as its current landscape of original movies and series is unclear. DC Comics, its characters, and newly launched revamped movie universe, provides endless stories and characters to adapt for television and films.

In 2017, Netflix bought Mark Millar‘s Millarworld in hopes of turning it into a franchise machine with films, series, and kids’ shows exclusively on the streaming platform. The result has been a trickle of projects and I think most would agree the deal was a bust for Netflix. While Millarworld comics were originally released by Image, in 2023 they shifted over to Dark Horse where releases have been steady. With the acquisition of DC, it’s not a stretch to see the imprint moving again to that publisher. Netflix and Dark Horse have had a two way partnership. They extended an agreement that granted the streaming service priority rights to intellectual property from Dark Horse. While a few properties were mentioned, little has come of it post the announcement and a few projects were released under a previous agreement. However, Dark Horse has been the publisher of comics based on Stranger Things which streams on Netflix. It’s unknown what the future holds when it comes to that and Netflix owning DC could change things in the far future.

Netflix has also been at arms length when it comes to theaters. It’s unclear how this deal will impact that after the deal closes and obligations wrap up. Netflix has had limited theater engagements and then had those films only be available on their platform. But, they’ve also had a property like K-Pop Demon Hunters blow up on their platform and then release in theaters for limited engagements. Things will shift if this deal closes but it’s unknown exactly how. Theaters will likely be a loser in the deal. Netflix will likely keep what it thinks will be a draw for subscribers but go to theaters for films it’s less sure about and will need theatrical releases to help cover costs.

In a win for consumers, it prevents the Ellisons from bringing their current dark cloud to more media. Under their recent purchase, they have quickly tilted the media to a more conservative bent including appointing controversial individuals to oversee news divisions like CBS. Bari Weiss is now the editor-in-chief of CBS News and her conservative media company The Free Press was purchased by Paramount Skydance in a $150 million deal. There was concern the Ellisons taking over WBD would tilt news channels such as CNN as well as other media channels with Weis overseeing them as well.

Paramount appointed Trump’s former ambassador to Japan and conservative Kenneth Weinstein to oversee CBS News as “an independent, internal advocate for journalistic integrity and transparency, reviewing concerns raised by employees and viewers, addressing questions about news coverage, and upholding the organization’s longstanding commitment to accuracy and accountability.” That appointment was part of the agreement from Trump’s FCC to approve the Skydance and Paramount merger. They also agreed to pay $16 million to Trump’s foundation to settle a lawsuit he brought against the company last year. The company is also under fire for agreeing to provide free airtime to Trump. There’s also the canceling of The Late Show With Stephen Colbert which is believed to have been done to appease the Trump administration.

The Netflix WBD acquisition will need to get approved by the Trump administration. That might be difficult. Netflix gaining HBO Max will raise concerns of consolidation in the streaming market. The Ellisons could also go scorched earth leaning into their contacts in the Trump administration which they are very friendly with and throw a wrench into the process. Still, Netflix has deep pockets and could push back.

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