\n\tUPDATE with Paramount statement: Paramount is pushing back on a recently filed shareholder lawsuit, saying it \u201crecycles allegations that have already been reported and already addressed.\u201d<\/p>\n
\n\t\u201cAs we\u2019ve said consistently: no commitments from either David or Larry Ellison have been made to any government body, State AG, or federal agency regarding the future of CNN or any other news property, other than the goal to deliver truth-based journalism,\u201d said a spokesperson for the company Wednesday.<\/p>\n
\n\t\u201cFurther, as we communicated in summer 2025 regarding the Skydance-Paramount transaction: \u2018As with any transaction that requires regulatory approval, Skydance executives and its representatives have had routine and customary interactions with government officials, including with the Administration, Congress, and federal regulators\u2026 throughout its history and during the review of the proposed acquisition of Paramount, Skydance has fully complied with all applicable laws, including our nation\u2019s anti-bribery laws.\u2019 \u201d<\/p>\n
\n\tThe Warner Bros. Discovery transaction \u201cstands on its own merits,\u201d the statement adds. \u201cCombining these two libraries and platforms gives consumers more choice, not less \u2014 greater investment in original programming, a stronger competitor to streaming rivals, and a more durable footing for journalism and storytelling alike. We remain confident in the merger\u2019s fundamentals and will continue toward closing.\u201d<\/p>\n
\n\tPREVIOUSLY: A Paramount Skydance shareholder has filed a derivative lawsuit against officers and directors of the company alleging breach of fiduciary duty in its pursuit of Warner Bros. Discovery, the latest in a string of legal actions seeking to derail the merger. <\/p>\n
\n\tParamount shareholder Paul Robbins filed the suit against CEO David Ellison, his father Larry Ellison and Par\u2019s 10-member board of directors in Delaware Chancery Court. It centers on claims of trading editorial independence for regulatory approval by the Trump administration. That includes alleged promises to overhaul CNN and settling a \u201cfrivolous\u201d lawsuit by the president against 60 Minutes, followed by a series of moves to make the network\u2019s news coverage more amenable to Trump. It says an alleged \u201cillegal bribery scheme in breach of their fiduciary duties of loyalty to Paramount and otherwise in violation of bedrock Delaware corporate law\u201d has damaged the the company\u2019s reputation and risks potential liability in the future.<\/p>\n
\n\tThe suit is backed by Freedom of the Press Foundation and the Public Integrity Project.<\/p>\n
\n\tA derivative lawsuit\u00a0is filed by a shareholder on behalf of a corporation against directors, officers, or other parties that have harmed the company by breaching their duties. Since the claim belongs to the corporation, not the shareholder, any recovery goes to the corporation although the stockholder shareholder may recover litigation costs. The suit says the plaintiff Robbins \u201cis and has been an owner of Paramount since prior to the August 2025 Paramount\/Skydance combination.\u201d <\/p>\n
\n\tIt\u2019s the latest in a stream of legal action as the deal moves forward with regulatory approvals. A group of Attorneys General led by Rob Bonta of California sued to block the $110 billion deal for antitrust violations and is seeking a temporary restraining order.<\/a> The WGA unveiled a lawsuit Tuesday<\/a>. A group of Paramount+ subscribers sued earlier this year to block the deal.<\/p>\n \n\t\u201cThe media has widely reported that Lawrence and David Ellison promised illegal, private benefits to President Trump in exchange for approval of their last media mega-merger. Specifically, in order to ensure federal regulatory approval of the merger between Ellison-controlled Skydance Media, LLC \n\tParamount has denied any side deal for advertising. <\/p>\n \n\tThe suit, again citing press reports, claims the Ellisons promised to make sweeping changes to CNN \n\t\u201cThe Ellisons\u2019 actions not only harm the reputations of the news outlets they currently own, which are hemorrhaging viewers, but they are latent liabilities waiting to be triggered by a future administration,\u201d the suit said.<\/p>\n","protected":false},"excerpt":{"rendered":"UPDATE with Paramount statement: Paramount is pushing back on a recently filed shareholder lawsuit, saying it \u201crecycles allegations…\n","protected":false},"author":2,"featured_media":765300,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33],"tags":[88,228983,327184,20007],"class_list":["post-765299","post","type-post","status-publish","format-standard","has-post-thumbnail","category-entertainment","tag-entertainment","tag-paramount-wbd","tag-paramouunt","tag-wbd"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/765299","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=765299"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/765299\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/765300"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=765299"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=765299"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=765299"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
(\u201cSkydance\u201d) and Paramount, the Ellisons promised President Trump up to $20 million in free advertising and reportedly encouraged Paramount\u2019s prior ownership to settle a frivolous lawsuit the President had filed against CBS (owned by Paramount) in his personal capacity\u2014effectively laundering a $16 million payment to President Trump through the courts,\u201d the suit reads. \u201cIn exchange, President Trump and the Trump-controlled Federal Communications Commission approved the deal with little to no oversight. The Ellisons also agreed to, and did, transform CBS to make its coverage far more favorable to the President, at the cost of the network\u2019s ratings.\u201d<\/p>\n
including potentially firing anchors the President dislikes, in exchange for regulatory approval. \u201cOnce they acquire Warner Bros., the Ellisons will also have the opportunity to improperly funnel cash to President Trump by settling litigation he brought against CNN in his personal capacity prior to his reelection.\u201d <\/p>\n