Recently, Warner Bros. Discovery’s legal team updated executives about a potential antitrust lawsuit that some progressive state attorneys general might file to contest the $80 billion merger of WBD with Paramount Skydance. The focus? Politics, as The Post has learned.
According to the lawyers, the lawsuit would hinge on antitrust claims. They noted that the merger results in minimal overlap in operations, and any existing overlaps concerning major studios and streaming services wouldn’t significantly affect consumer prices, particularly given the rapid changes in the media landscape.
“So why is there any concern?” one senior executive questioned during the meeting.
Lawyers attributed the worry to political dynamics.
It’s expected that a lawsuit could soon make headlines, especially since it would likely be initiated by ambitious Democrats. Yet, the mainstream coverage may not emphasize this aspect, as many reporters often lean leftward, sometimes missing the bigger picture.
This situation is further complicated by the ties to President Trump, along with key figures like Paramount’s David Ellison and his father, prominent Trump supporter Larry Ellison. The political landscape surrounding the deal is hard for the media and its supporters to ignore.
California AG Rob Bonta is expected to lead the charge, likely alongside New York AG Tish James. Both are known for their political ambitions and have taken opportunities to criticize Trump in the past.
Despite the potential challenges in proving the antitrust case, legal experts I spoke with expressed skepticism about its strength, suggesting that a court might dismiss it fairly easily.
Still, from a political angle, this lawsuit could energize the Democratic base as the midterms approach, giving Bonta an opportunity to raise his profile in the media, with the prospect of future political aspirations. James has consistently leveraged her position to make digs at Trump for political gain.
Meanwhile, Bonta could tell Hollywood influencers, like actor Mark Ruffalo, that the merger won’t suppress progressive voices. If anything, it could lead to more jobs and better pay, despite their concerns. The reality may be frustrating for some in Hollywood, but these figures are influential, and Bonta needs their support for his own political future.
Hollywood’s Dislike for Trump
Just as the media often criticizes Trump, Hollywood has similarly taken on a negative stance, which aligns with the timeline WBD’s legal team anticipates for this case. It seems that Trump’s presence, both tangible and otherwise, has continued to stir reactions in various cultural sectors. The Ellison family’s control over Paramount Skydance is a notable point of concern for many partisan Democrats, as it introduces an influence they find unsettling.
Trump’s relationship with the media has contributed to ongoing scrutiny, as many institutions continue to address his lawsuits and regulatory actions—like those concerning corporate loan approvals. Interestingly, the last administration’s Justice Department expedited the approval process for Ellison’s acquisition of WBD.
However, it’s essential to remember that the Ellison family ultimately does not answer solely to Trump regarding their merger. Their legal obligation is towards their shareholders, focused on profitability. If conservatively leaning programming proves to attract consumers, they may have to adjust their approach to maintain “shareholder value.”
In many respects, political discussions can miss the mark more than antitrust claims—especially when lacking intellectual honesty. On that front, my expectations for Bonta and James, frankly, aren’t too high.
