Paramount Shareholders Sue Ellison Family Over Alleged Deal with Trump
Paramount shareholders are taking legal action against Larry and David Ellison, claiming they engaged in an “illegal” arrangement with former President Trump to facilitate the studio’s acquisition of Warner Bros. Discovery.
The lawsuit was filed on Tuesday in Delaware Chancery Court, aiming to halt the acquisition and seeking “unspecified monetary damages.” The Ellisons are accused of guaranteeing “illegal private benefits” to Trump to remove federal regulatory hurdles.
The complaint details that the agreement between the Ellisons and Trump allegedly allowed for the “illegal funneling of cash” to the president by settling legal issues with CNN. It also suggests they promised to dismiss CNN anchors Trump disfavored following the acquisition of Warner Bros. Discovery. The suit states that the Ellisons’ actions could not only damage the reputation of their owned news organization but also lead to future liabilities under different administrations.
This legal action was initiated a day after twelve Democratic state attorneys general filed their own complaints. For antitrust reasons, the two companies argued that the merger would create an unfair advantage in both theater and cable television markets, drawing further scrutiny from other entities, including the Writers Guild of America, which filed a lawsuit against the merger as well, citing concerns over potential negative impacts on writers’ earnings and job opportunities.
A spokesperson for Paramount dismissed the lawsuit, claiming it’s just a rehash of allegations that had been previously addressed.
“As we’ve made clear, neither Mr. David nor Mr. Larry Ellison have committed to any government or state body regarding the future of CNN or any news entity, apart from our aim to ensure journalistic integrity,” the spokesperson remarked.
They emphasized that the Warner Bros. Discovery acquisition stands on its own. Merging the libraries and platforms would enhance consumer choice, foster greater investment in original content, and create a stronger competitor in the streaming market, thereby supporting journalism and storytelling overall.
Additionally, Paramount is facing a lawsuit from California Attorney General Rob Bonta, who argues that the acquisition will lead to increased prices, reduced quality, and a lack of content for movies and television, ultimately hurting audiences across the nation.
