Paramount Skydance CEO David Ellison has attributed the legal backlash against his proposed mega-merger with Warner Bros. Discovery (WBD) to political motivations, asserting that it is <source_ref>claim:4</source_ref> 'not really about market share.' Ellison's comments come as the $111bn deal faces multiple lawsuits and a court-ordered pause.
Deal Value and Regulatory Scrutiny
The acquisition, valued at $111bn (with one source citing $110bn or £86bn), has already received approval from regulators in 65 countries, including the United States and the European Union. Ellison emphasized in a New York Times guest essay that the deal has 'been reviewed and approved by regulators reflecting 65 countries, including the United States.'
The proposed acquisition of Warner Bros. Discovery by Paramount Skydance.
Despite this international approval, the merger is currently stalled in the courts. A 12-state coalition and the Writers Guild of America (WGA) have filed lawsuits to block the deal on anti-competitive grounds, arguing it would violate the Clayton Act by reducing competition and harming opportunities for writers. The coalition is led by California Attorney General Rob Bonta.
Ellison has pushed back against these concerns, claiming that a merged Paramount-Warner would account for less than 20% of US television watch time, dropping to around 13% when accounting for YouTube. He also dismissed the opposition as relying on a vision of Hollywood that 'no longer exists.'
Great news organizations like CNN and CBS News are here to tell it straight down the middle.
Ellison has sought to reassure critics about the independence of news outlets under his leadership, stating, 'I do not aspire to lead these companies to bend their newsrooms to my views.' However, reporting has shown that Ellison and his father made promises to the Trump administration about swaying the network in a more favorable direction to encourage federal regulators to approve the merger.
The legal challenges have led to a temporary block by District Judge Araceli Martínez-Olguín. The trial is expected to reach a date in April 2027 according to the state coalition, while Paramount has asked for a November trial. One source suggests the trial could be pushed until 2 March 2027, though another says it could go as late as June 2027.
Ellison has promised to deliver 30 theatrical films and 170 television series annually, backed by more than $30bn in annual content investment. The merger follows Skydance Media's $8.4bn deal with Paramount Global, after which Ellison appointed Bari Weiss to run CBS News. US Senator Elizabeth Warren is among the Democrats who have reacted against the merger.
