I want to go over the likely coming challenge to the attempted merger of Paramount and Warner Bros Discovery, a combination that would put much of Hollywood and media assets such as CNN in the hands of billionaire Trump ally Larry Ellison. CNN’s Brian Stelter reported that state attorneys general, led by California Attorney General Rob Bonta, are readying a complaint as soon as tomorrow to block the merger. David McCabe in the New York Times added more color, saying the complaint will focus on ‘tentpole movies,’ aka blockbuster films.
The longer the deal is delayed, the more expensive for them, because the Ellison’s agreed to pay a “ticking fee” to Warner shareholders of $650 million for every quarter it’s delayed. One result of the dashed expectation they could close the deal without challenge is wild threats. For example, they are leaking that they might take both studios and leave California, which is sure to generate yet more hatred in Hollywood for the Ellison’s, and demonstrate just how powerful this combined entity is.
this deal would consolidate two studios that make movies and TV shows, the industry which is effectively mass production of professional storytelling.
On a political level, Paramount owns CBS News, while Warner has CNN. The President has indicated he expects the Ellison family to reorient CNN to become a more conservative and friendly media outfit, as they have done for CBS under the leadership of Bari Weiss.
The US federal antitrust division laid down. Larry Ellison had made a secret $45 million donation to a Trump-aligned electoral group, and had promised to overhaul CNN if the merger went through.
Can “Master of the Universe” [ The Bonfire of the Vanities ] Ellison prevail?