Recently, some executives from Paramount Skydance were dismissed by antitrust investigators from the Trump administration while the media giant pursues regulatory approval for its $81 billion acquisition of Warner Bros. Discovery, according to reports from On the Money.
A meeting regarding the merger took place around two weeks ago between senior Paramount executives and the Justice Department. This has raised concerns, particularly among left-wing media, who argue it could lead to job losses in Hollywood.
Interestingly, the rapidly growing conglomerate known as PSKY invited around six state attorneys general to observe the discussions via Zoom.
The attendees included representatives from New York Attorney General Tish James and California Attorney General Rob Bonta. Bonta, in fact, has hinted at the possibility of legal action to block the merger after receiving input from Hollywood figures like actor Mark Ruffalo and progressive legal advocates like Norman Eisen.
The primary argument against the deal revolves around the fear of diminished job opportunities and market competition. Eisen and his associates, backed by over 1,000 signatories, have urged state officials to take legal steps against the merger.
However, those familiar with Paramount suggest that the underlying opposition is more political in nature. David Ellison, leading Paramount Skydance, aims to promote more centrist content within the expanding media company, which includes CBS, Paramount Pictures, and potentially, if the acquisition is successful, the CNN network, HBO Max, and Warner Bros. studios.
Eisen, who served in the Obama administration and was involved in the 2020 impeachment of Trump, has publicly expressed concerns about the merger’s impact on competition and democracy.
What some critics may overlook is that Warner Bros. Discovery has been reducing its workforce since it was formed in 2022 through the merger of Discovery and the struggling Warner Media, led by CEO David Zaslav. The offered price of $31 per share is significantly higher than Warner Bros. Discovery’s value of about $8 prior to bidding, indicating a lack of confidence in its future as an independent entity.
PSKY representatives highlighted these points during the lengthy meetings with Justice Department officials, which lasted over six hours. They also emphasized that the merger has backing from media executives aware that the changing landscape due to cord-cutting and streaming could actually preserve jobs if the deal is finalized.
According to a source familiar with the situation, “If there are no objections, the merger should wrap up by July.” They anticipate closing the deal with Warner within 48 hours of receiving the green light from the Justice Department, unless any states raise concerns.
David Ellison of Paramount and Oracle co-founder Larry Ellison, whose father supports Trump, remain optimistic that the antitrust division of the Justice Department will approve the merger. They are, however, playing it safe and have enlisted top antitrust lawyers for the process.
These legal experts include Jeffrey Kessler, who is associated with a notable antitrust class-action lawsuit that established a system for “name, image, and likeness” rights in college sports.
Those close to the situation noted that discussions regarding job retention felt somewhat repetitive since Warner Bros. Discovery was already in a precarious position pre-merger, burdened by significant debt and competition. Besides, it’s argued that antitrust lawsuits lack strength, as the two entities do not overlap in ways that could harm consumers.
Yet, progressives worry that the Ellisons could push for more centrist programming at Warner Bros. Discovery, which encompasses CNN, mirroring previous changes made at CBS when they took control.
A representative for Bonta mentioned, “The investigation into Paramount’s acquisition is still active, and we have no updates.” Meanwhile, an aide for Tish James’ office, also involved in reviewing the deal, did not provide comments. Although invited to the deposition, Mr. James’s legal team chose not to attend, citing confidentiality concerns.
Paramount Skydance declined to comment on the matter, and antitrust officials from the Department of Justice also withheld remarks. A response from Mr. Ruffalo’s representative was not forthcoming.
