{"id":477979,"date":"2026-09-28T04:40:08","date_gmt":"2026-09-28T04:40:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/477979\/"},"modified":"2026-09-28T04:40:08","modified_gmt":"2026-09-28T04:40:08","slug":"paramounts-david-ellison-faces-daunting-challenges-in-hollywood","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/477979\/","title":{"rendered":"Paramount’s David Ellison faces daunting challenges in Hollywood"},"content":{"rendered":"\n

Last week\u2019s settlement of the antitrust lawsuit<\/a> between state attorneys general and Paramount Skydance over its planned merger with Warner Bros. Discovery marked a clear victory for David Ellison<\/a>.<\/p>\n

If approved by a judge<\/a>, the settlement would clear the way for the emerging Hollywood mogul to complete the blockbuster $111-billion purchase after months of uncertainty over whether the deal would overcome intense opposition in Hollywood. <\/p>\n

What\u2019s more, Ellison achieved the settlement without having to agree to any so-called structural remedies that California Atty. Gen. Rob Bonta had been seeking. <\/p>\n

But Ellison can hardly rest on his laurels. The Paramount Skydance chief executive will have to work hard to repair badly frayed relations with Hollywood talent who fiercely opposed the consolidation of two historic studios as a bad deal for workers. And the 43-year-old tech scion will be constrained by some of the terms that were imposed in the consent decree negotiated with Bonta and other attorneys general.<\/p>\n

\u201cI don\u2019t envy David Ellison. You bought this ship, now you\u2019ve got to sail it. And you\u2019re facing threats on all fronts: bad will, everybody rooting for you to fail and operating a business in an incredibly uncertain, challenging time,\u201d said Gabriel Kahn, a professor at the USC Annenberg School for Communication and Journalism. \u201cAt the same time, you are going to have to mortgage everything to make these debt payments.\u201d<\/p>\n

As part of the deal, Paramount agreed to a slate of requirements that, if it fails to deliver, could induce financial penalties, litigation and other costs.<\/p>\n

For one thing, Paramount would have to pay a penalty and divest the Miramax film studio if it does not distribute 30 or more films a year in theaters.<\/p>\n

The studio also pledged to spend $300 million more each year on film production in the U.S. and further boost its film spending if the federal government adopts a film tax credit of at least 20%;<\/a> it agreed not to sell or close its lot on Melrose or the Warner Bros lot in Burbank and to operate them \u201cin a manner consistent with past practices,\u201d until 2031.<\/p>\n

Additionally, Paramount is required to establish a board<\/a> to ensure editorial independence for CNN and CBS News, though it will be appointed by Paramount directors with the authority to remove its members. <\/p>\n

Beyond attempting to smooth the industry\u2019s many ruffled feathers, Hollywood\u2019s newest mogul must now also wrestle down an astonishing $80 billion in debt accrued as a result of this highly leveraged merger. <\/p>\n

Ellison\u2019s father, billionaire Larry Ellison,<\/a> late last year agreed to backstop the $47 billion in equity needed to complete the acquisition. Royal families from Saudi Arabia, Qatar and Abu Dhabi have agreed to contribute another $24 billion<\/a> for an equity stake by assuming some of Ellison\u2019s financial commitments.<\/p>\n

The months-long battle was bitter and hard fought and enmity within the industry has yet to subside.<\/p>\n

On Tuesday, the morning after Bonta announced the settlement agreement, protesters<\/a> converged outside of Paramount Skydance\u2019s Melrose Avenue gate criticizing the deal. Some held fake gravestones that read: \u201cRIP local business,\u201d \u201cRIP crew call\u201d and \u201cRIP creativity.\u201d<\/p>\n

Two days later, a coalition of several groups including the Committee for the First Amendment, filed an amicus brief asking the court to reject the consent decree, saying that it failed to address the anti-competitive concerns of the state attorneys general and would not protect jobs or consumers. <\/p>\n

The sense of betrayal was acute.<\/p>\n

\u201cHate to say it but we all got played,\u201d wrote actor Mark Ruffalo, a leading organizer in Block the Merger, a grassroots organization made up of 1st Amendment advocates and Hollywood celebrities who aggressively opposed it, in a post on X.<\/a> <\/p>\n

Sen. Elizabeth Warren (D-Mass.) repudiated the deal, saying in a statement.<\/a> that it \u201cenables a handful of billionaires to call the shots in the media.\u201d<\/p>\n

The entertainment unions struck more cautionary notes.<\/p>\n

SAG-AFTRA, the actors union, wrote in a statement that the deal \u201caddresses some of our deep concerns,\u201d but added, \u201cWe hope that the process of engaging with the attorneys general has impressed upon them the fact that in addition to collective bargaining, our members rely on the law to help protect our interests. These are the lowest standards that our employers must meet.\u201d<\/p>\n

Bonta,<\/a> who had spearheaded the antitrust suit, gave a tepid endorsement of the consent decree. <\/p>\n

\u201cI want to be clear about something right up front: This settlement is not a vote of support for this merger. It is not a blessing,\u201d he said.<\/p>\n

During Paramount\u2019s heated and often contentious legal and political wrangling to wrest control of Warner Bros., many in Hollywood became increasingly apprehensive. Combining two legacy studios, opponents feared, would bring even more job losses to an industry already battered by runaway production.<\/p>\n

The skepticism hardened as the Ellisons made several controversial moves after Skydance acquired Paramount last summer.<\/a> They included agreeing to pay $16 million to settle a lawsuit filed by President Trump over a \u201c60 Minutes\u201d interview segment, canceling the \u201cLate Show With Stephen Colbert,\u201d ending diversity, equity and inclusion programs and appointing Bari Weiss as editor in chief of CBS News, who engaged in a wholesale overhaul that led to a revolt at the esteemed \u201c60 Minutes.\u201d<\/a> <\/p>\n

When the newly formed Paramount Skydance announced its intention to swallow up Warner Bros. Discovery just months later, a massive wave of political pressure and public backlash began.<\/p>\n

But the Ellisons dug in.<\/p>\n

In January \u2014 after Netflix threw a surprise wrench into the Ellisons\u2019 designs on Warner Bros. by offering $72 billion, which the studio accepted \u2014 Paramount took Warner Bros. to court and launched a hostile takeover bid.<\/a> <\/p>\n

A month later, Netflix walked away from the deal and collected a $2.8-billion termination fee after the Warners\u2019 board agreed to Paramount\u2019s higher all-cash bid.<\/a><\/p>\n

But many in Hollywood began agitating against the planned merger and pushing for guardrails and protections.<\/p>\n

In April, Block the Merger released an open letter<\/a> declaring their opposition; its list of professionals across the film and television industry eventually swelled to nearly 6,000 names, including Ruffalo, Jane Fonda, Ben Stiller, Sofia Coppola, Trey Parker and Denis Villeneuve. <\/p>\n

\u201cThe future of free media and a strong entertainment industry in America is at stake here,\u201d said Norm Eisen, co-founder and executive chair of Democracy Defenders Fund, who also helped lead the Block the Merger campaign.<\/p>\n

The Writers Guild of America sued to stop the deal, saying it violated antitrust laws. The union last week settled its lawsuit, citing the costs of continuing the litigation, after Paramount agreed not to lay off writers at CBS Broadcast News for years and to pay $17.5 million to the union\u2019s health fund. Nonetheless, the guild said: \u201cWe continue to believe the merger will cause damage to writers and the industry at large.\u201d <\/p>\n

Some backed the megadeal, including power broker Ari Emanuel.<\/p>\n

The WME executive and chairman and CEO of TKO came out swinging, excoriating the antitrust suit, in an op-ed<\/a> for the Wall Street Journal in July. \u201cThey say they are protecting competition. Their actions threaten to destroy it,\u201d he wrote.<\/p>\n

The Ellisons\u2019 ongoing ties with Trump \u2014 whose administration has clashed with ABC, CNN and other networks<\/a> \u2014 only deepened the suspicions.<\/p>\n

Oracle co-founder Larry Ellison has been a Trump supporter and friend. In addition to political donations,<\/a> he participated in a Nov. 14, 2020, conference call<\/a> that discussed ways to challenge Trump\u2019s presidential election defeat.<\/p>\n

Both Ellison and his son David reportedly promised the president they would make \u201csweeping\u201d <\/a>changes at CNN, which is owned by Warner Bros. Discovery.<\/p>\n

In June, David Ellison attended the \u201cUFC Freedom 250\u201d event hosted by Trump on the South Lawn of the White House, and last week he was a guest at the White House state dinner honoring Chinese President Xi Jinping. <\/p>\n

Amid the high-level public-facing Trump engagements, Paramount had been quietly trying to allay fears about the relationship to industry insiders.<\/p>\n

Two individuals in the entertainment industry, who declined to be named for fear of retaliation, said that Paramount sent emissaries to extend a kind of olive branch, explaining their commitment to Hollywood and downplaying the relationship as a necessary step to get the deal done.<\/p>\n

In August, Ellison published an op-ed<\/a> in the New York Times in which he extolled his lifelong love of movies and laid out his case that he could be \u201ctrusted as a steward\u201d of the media giant he was amassing, that includes two institutional news organizations (CBS and CNN) and the legacy studios he wished to combine. <\/p>\n

However, his seemingly conciliatory message was undercut that same month when he threatened to relocate Paramount\u2019s base to Tennessee or Texas.<\/a> Ellison built his Skydance production in Santa Monica. <\/p>\n

Across the industry, workers viewed the mixed messaging with wariness and anger.<\/p>\n

\u201cIf Ellison truly wants to be a steward and do the things that he said he can do and wants to do in that article, I think people would welcome it,\u201d said Pamala Buzick Kim, a co-founder of Stay in LA, the 23,000-member grassroots campaign aimed at boosting local film and television production. \u201cThey just have no evidence of it.\u201d<\/p>\n

Aside from the bad blood, Ellison\u2019s biggest challenge may be financial.<\/p>\n

At a time of massive industry upheaval, most observers believe that the company will have to lay off droves of workers to bring its costs down.<\/p>\n

\u201cI will honestly say that the biggest work that they have cut out for them is servicing this debt, and that\u2019s going to guide every decision,\u201d said Kahn, the USC professor.<\/p>\n

\u201cNow they\u2019re going to have to fire lots of people in order to reduce costs to be able to make this deal pencil out, and they\u2019re going to be skating on the razor\u2019s edge to make sure that they have enough revenue coming in going forward to service this debt. They have almost no room to maneuver.\u201d<\/p>\n

But Paramount has one thing working in its favor: leverage. David (as in Ellison), for better or worse, is now the industry\u2019s Goliath.<\/p>\n

\u201cI think temper tantrums can be easily forgotten if the work is there,\u201d said Buzick Kim. \u201cI think most people would be happy to leave it behind them \u2014 if the work is there.\u201d<\/p>\n

Times staff writers Meg James, Stephen Battaglio and Samantha Masunaga contributed to this report.<\/p>\n","protected":false},"excerpt":{"rendered":"Last week\u2019s settlement of the antitrust lawsuit between state attorneys general and Paramount Skydance over its planned merger…\n","protected":false},"author":2,"featured_media":477980,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[6236,4596,5177,21405,6709,1743,21403,48,52,51,5562,47,50,49,49397,3906,6336,61135,5675,1519,14955],"class_list":["post-477979","post","type-post","status-publish","format-standard","has-post-thumbnail","category-los-angeles","tag-block","tag-cbs-news","tag-cnn","tag-david-ellison","tag-deal","tag-hollywood","tag-industry","tag-la","tag-la-headlines","tag-la-news","tag-last-week","tag-los-angeles","tag-los-angeles-headlines","tag-los-angeles-news","tag-merger","tag-month","tag-paramount","tag-paramount-skydance","tag-settlement","tag-trump","tag-warner-bros"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/477979","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=477979"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/477979\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/477980"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=477979"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=477979"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=477979"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}