{"id":731197,"date":"2026-06-12T04:16:14","date_gmt":"2026-06-12T04:16:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/731197\/"},"modified":"2026-06-12T04:16:14","modified_gmt":"2026-06-12T04:16:14","slug":"david-ellison-and-paramount-are-having-a-rough-week-in-their-attempt-to-take-over-warner-bros","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/731197\/","title":{"rendered":"David Ellison and Paramount are having a rough week in their attempt to take over Warner Bros"},"content":{"rendered":"

When you\u2019re trying to buy one of Hollywood\u2019s oldest studios for $US110 billion, it\u2019s going to be a tumultuous process.<\/p>\n

This week has been a particularly harrowing one for tech scion David Ellison, who has already taken over Paramount with a bank roll from his billionaire father Larry Ellison, founder of software giant Oracle, and will add Warner Bros to his kingdom.<\/p>\n

The proposed marriage of Paramount with Warner Bros has triggered an avalanche of opposition from those within and outside of the entertainment industry.<\/p>\n

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Among the reasons is the perception of the Ellisons\u2019 connections to Donald Trump, as well as the consolidation of two legacy studios in an already contracting business environment.<\/p>\n

Warner Bros owns franchises including Harry Potter, Lord of the Rings, Game of Thrones, DC Comics and HBO. A merger could impact the depth and breadth of the stories audiences see.<\/p>\n

Today, the UK competition watchdog has opened its own investigation into the merger, given the deal has ramifications across multiple markets outside of the US.<\/p>\n

The British Competition and Markets Authority said it will probe whether the merger will lead to a \u201csubstantial lessening of competition\u201d in the UK. It has set a deadline of August 7 as to whether it will then progress into a phase two enquiry, which could then take a further five months.<\/p>\n

\"DavidDavid Ellison, chairman and chief executive officer of Paramount Skydance, is facing opposition to his takeover of Warner Bros on multiple fronts. Photographer: Kyle Grillot\/Bloomberg Credit: Kyle Grillot\/Bloomberg<\/p>\n

In late May, the European Union launched its own investigation as well, and is expected to deliver an initial report next month. Opposition from either the EU or the UK could present a substantial roadblock to the deal.<\/p>\n

That\u2019s not the only hurdle Ellison has had to face within the past week. He is fighting against hostility towards the deal on multiple fronts.<\/p>\n

Earlier this month, Reuters reported that US states including California and New York are preparing a lawsuit to block the acquisition. It is expected to be filed within weeks, the newswire reported. The states\u2019 attorneys-general have previously voiced anti-competition concerns.<\/p>\n

A lawsuit, even if ultimately unsuccessful, could add substantial costs to the transaction beyond just legal fees. In the deal sheet, Paramount agreed to pay Warner Bros shareholders an extra fee of around $US7 million a day starting from October if the merger has not completed by then.<\/p>\n

Those terms were suggestive of Ellison\u2019s confidence that the proposed merger would swiftly fend off any regulatory challenges. It was expected that he would face little opposition from US federal agencies and departments, who are in the middle of their investigations.<\/p>\n

Ever since Ellison started to make these large-scale moves on the entertainment business, he and his father\u2019s political ties have come under intense scrutiny.<\/p>\n

Ellison ran production company Skydance before he made a play for Paramount to the tune of $US8 billion. The approval of that earlier deal had hinged on approval from the Federal Communications Commission, which had held up the acquisition.<\/p>\n

During that time, Paramount, which owns TV network CBS, settled a lawsuit brought against it by Trump and cancelled the Late Show with Stephen Colbert. Within the month, Ellison\u2019s purchase of Paramount was approved by the FCC.<\/p>\n

\"ScottScott Pelley has been fired by CBS after he slammed the new regime of the network’s news department. Credit: AAP<\/p>\n

Those perceptions of pandering to the Trump government has continued, most recently last week after the extraordinary axing of 60 Minutes correspondent Scott Pelley.<\/p>\n

Pelley, who had been with the CBS news division for decades, had exchanged strong words in a staff meeting with newly installed 60 Minutes executive producer Nick Bilton. He was fired the following day.<\/p>\n

CBS News has become a flashpoint since Ellison hired Bari Weiss, a conservative print and digital journalist and commentator to run its editorial. Correctly or incorrectly, the decision was seen at large as one to appease Trump, who has a penchant for fighting against mainstream media organisations.<\/p>\n

That has become a perception problem for Ellison as it has fuelled antipathy towards his plans to bring together Paramount and Warner Bros. The latter is the parent company of CNN, and the fears are that the centrist cable network could lose its independence in the face of a billionaire owner.<\/p>\n

Pelley, after he was sacked, told The New York Times, \u201cThere\u2019s a subtle political bias that I\u2019ve never seen at 60 Minutes before, or at CBS News before\u201d, and had alleged that Weiss had a \u201cthumb on the scale\u201d on behalf of the Trump administration.<\/p>\n

\u201cRight now, CBS News is on fire,\u201d Pelley added.<\/p>\n

The entire acquisition process has been a contentious one. Ellison merged as the eventual victor in a competitive bid for Warner Bros which also attracted offers from Netflix and Comcast.<\/p>\n

\"TheThe proposed takeover of Warner Bros by Paramount is facing anti-competition probes in the UK, US and the EU. Credit: David Harpe – stock.adobe.com<\/p>\n

Netflix was initially awarded the sale but after weeks of public provocations and accusations of improper processes from Ellison, Paramount went in with an improved offer, which Netflix declined to match or outbid.<\/p>\n

This week, Paramount accused Netflix of running a backroom \u201cscorched-earth campaign\u201d to sabotage the Paramount-Warner Bros deal.<\/p>\n

According to Politico, Paramount sent a letter to the US Justice Department that alleged Netflix was attempting to scuttle the merger through proxies such as labour unions.<\/p>\n

Several industry organisations including the Teamsters Union, which represents entertainment trade workers such as drivers, location managers and mechanics, have come out against it.<\/p>\n

In April, thousands of industry workers including high-profile actors and filmmakers such as Ben Stiller, Pedro Pascal, Glenn Close, Kristen Stewart, David Fincher, Denis Villeneuve, Adam McKay, Taika Waititi, Mark Ruffalo, Noah Wyle, Javier Bardem and Florence Pugh signed an open letter which stated an \u201cunequivocal opposition\u201d to the merger.<\/p>\n

It said, \u201cThis transaction would further consolidate an already concentrated media landscape, reducing competition at a moment when our industries \u2013 and the audiences we serve \u2013 can least afford it.<\/p>\n

\u201cThe result will be fewer opportunities for creators, fewer jobs across the production ecosystem, higher costs, and less choice for audiences in the United States and around the world.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"When you\u2019re trying to buy one of Hollywood\u2019s oldest studios for $US110 billion, it\u2019s going to be a…\n","protected":false},"author":2,"featured_media":731198,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[45,49,48,569,1554],"class_list":["post-731197","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-ca","tag-canada","tag-culture","tag-film"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/731197","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=731197"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/731197\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/731198"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=731197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=731197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=731197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}