Paramount-Warner Bros. Discovery (WBD) merger is facing legal hurdle. A shareholder lawsuit has been filed against tech billionaire Larry Ellison and his son, Paramount Skydance Chief David Ellison, accusing them of striking a corrupt, ‘illegal’ backroom deal with President Donald Trump to clear regulatory hurdles for a historic media merger, a report has said. The lawsuit, filed by Paramount stockholder Paul Robbins in the Delaware Chancery Court, seeks to completely block Paramount’s massive $111 billion merger with Warner Bros. Discovery (WBD).Citing the complaint, a report by Variety says that lawsuit alleges the Ellisons promised “illegal private benefits to President Trump” in exchange for the White House smoothing over federal antitrust barriers. According to the suit, this secret agreement included an opportunity to funnel cash to the president by settling his ongoing legal claims against CNN. Furthermore, the Ellisons reportedly promised that CNN anchors whom Trump dislikes would be fired immediately after the takeover.
Allegations of ‘remaking’ networks
The lawsuit further claims that the Ellisons’ political maneuvering has already damaged the media properties they control. Following the initial August 2025 merger between Skydance and Paramount Global, the suit alleges the Ellisons quickly “proceeded to remake CBS in the president’s image, bought properties he enjoyed, and even hosted events to honor him.”Shareholders argue these moves have alienated audiences, causing networks to “hemorrhage viewers.” The lawsuit also highlights a series of unusual regulatory green lights as evidence of a quid pro quo. In mid-June, the US Justice Department officially cleared the Paramount-WBD acquisition without demanding a single corporate divestiture or concession. Furthermore, the suit points out that federal regulators have taken a conspicuously hands-off approach ever since Trump publicly indicated his preference for Paramount to buy WBD over a competing bid from Netflix.The legal challenge arrived a day after 12 Democratic state attorneys general filed a federal lawsuit to block the deal on antitrust grounds, arguing the combined entity would hold an illegal monopoly over theatrical and cable TV markets. The Writers Guild of America (WGA) has also sued, claiming the consolidation will depress writers’ pay and eliminate jobs.
Paramount fires back: ‘Recycled allegations’
Paramount has vehemently denied the explosive claims, pushing back against the lawsuit’s narrative.“This lawsuit recycles allegations that have already been reported and already addressed. 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,” a Paramount spokesperson stated.The company added that the merger stands entirely on its own economic merits, promising it will give consumers more choices and increase investment in original programming.
