A Paramount shareholder has sued father-son duo Larry and David Ellison, alleging that they forged an “illegal” deal with President Trump to obtain approval for the studio’s purchase of Warner Bros. Discovery.
Filed Tuesday in Delaware Chancery Court, the lawsuit aims to block the studio’s acquisition of Warner Bros. Discovery while seeking “unspecified monetary damages,” per Variety, charging that the Ellisons promised “illegal private benefits to President Trump in order to remove federal regulatory barriers.”
Per the lawsuit, the Ellisons’ side deal with Trump included “the opportunity to improperly funnel cash” to to the president by settling his legal claims against CNN, as well as promises that CNN anchors whom Trump does not like would be fired after the WBD takeover. “The Ellisons’ actions not only harm the reputations of the news outlets they currently own, which are hemorrhaging viewers, but they are latent liabilities waiting to be triggered by a future administration,” the suit says.
The complaint was filed a day after 12 Democratic state attorneys general filed a federal lawsuit seeking to block the Paramount-WBD merger on antitrust grounds, alleging it would give the combined company undue control in theatrical and cable TV markets. The WGA also sued to stop the merger, claiming it would hurt writers’ pay and job opportunities.
A Paramount spokesperson dismissed the lawsuit as little more than a rehash of allegations that have “already been reported and already addressed.”
“As we’ve said consistently: no commitments from either David or Larry Ellison have been made to any government body, State AG, or federal agency regarding the future of CNN or any other news property, other than the goal to deliver truth-based journalism,” it said.
“The Warner Bros. Discovery transaction stands on its own merits. Combining these two libraries and platforms gives consumers more choice, not less — greater investment in original programming, a stronger competitor to streaming rivals, and a more durable footing for journalism and storytelling alike. We remain confident in the merger’s fundamentals and will continue toward closing,” it added.
Paramount also currently faces a lawsuit from California Attorney General Rob Bonta, alleging that the acquisition would lead to “higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S.”
Read the full article here