politics
Paramount Investors Sue David and Larry Ellison Over Alleged Merger Deal
Shareholders filed a lawsuit in Delaware Chancery Court alleging the Ellisons promised changes at CNN and other concessions to secure regulatory approval for the Warner Bros. Discovery acquisition. The complaint also cites a prior $16 million settlement payment and up to $20 million in free advertising.
Jul 15, 3:03 PM·1m read2 sources
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Shareholders filed a lawsuit Tuesday in Delaware Chancery Court against David Ellison, his father Larry Ellison, and other Paramount board members. The complaint seeks to block Paramount's planned acquisition of Warner Bros. Discovery. The investors allege the Ellisons promised to overhaul CNN and provide up to $20 million in free advertising in exchange for regulatory clearance.
They also cite a $16 million payment made to President Trump through a prior settlement by the studio's previous ownership. The suit claims these actions created financial and legal risk for Paramount and breached fiduciary duties. It follows earlier lawsuits filed by a coalition of 12 state attorneys general, the Writers Guild of America, and Paramount+ subscribers.
Background on the Deal The complaint states that President Trump helped Paramount win the bidding war and removed regulatory barriers. It alleges that after approval, the Ellisons remade CBS coverage, purchased properties, and hosted events honoring the president.
CBS News recorded its lowest ratings in 25 years, and the network experienced a talent exodus after changes in coverage, according to the complaint. Paramount did not immediately respond to a request for comment. The lawsuit warns that Congress and future administrations may investigate the studio, creating long-term legal exposure.
