Paramount Investors, 12 States Sue to Block Ellison’s Takeover Bid

NEWS & RESEARCH

Twelve state attorneys general and Paramount shareholders are suing to block regulatory approval for Paramount’s acquisition of Warner Bros. Discovery, which owns CNN. Paramount is controlled by billionaires Larry and David Ellison, who the suits allege successfully courted President Trump through financial support and explicit promises—including an assurance from Larry Ellison that the network would shift to a more conservative stance. This political alliance is hardly a secret: Defense Secretary Pete Hegseth's publicly endorsed the acquisition, stating, “The sooner David Ellison takes over [CNN], the better.” The Paramount shareholders are angered that CBS News’ ratings have tanked since David Ellison installed conservative gadfly Bari Weiss as editor-in-chief at the network. Weiss blocked a 60 Minutes investigative report on a notorious Salvadoran prison where the Trump administration deported more than two hundred people. The suit by the state AGs alleges that the merger would harm theaters and television distributors, raise prices for consumers and make wages less competitive for workers. Meanwhile, on July 14, 2026, a Paramount shareholder lawsuit was filed in Delaware Chancery Court seeking to block the acquisition, accusing the Ellisons of striking an illegal side deal with Trump to secure regulatory approval for the merger. According to the complaint, the Ellisons allegedly promised to overhaul CNN, provide up to $20 million in free advertising for conservative causes, and resolve a prior lawsuit against CBS with a $16 million settlement to Trump. The lawsuit argues these actions breach fiduciary duties by exposing the company to significant legal, financial, and reputational risks, particularly amid viewer declines at CBS News. In addition to the shareholders and the state AGs, the Writers Guild of America, and Paramount+ subscribers have also sue do block the merger.

SOURCES: New York Times | CNN | New Yorker | Variety | Washington Post | L.A. Times | Reuters | Hollywood Reporter

ANALYSIS & OPINION

Media industry critic analysts are warning that the Ellisons’ recent acquisitions threaten journalistic independence. Former New York Times public editor Margaret Sullivan argues these takeovers help Donald Trump gain "control of the news media for partisan political purposes," while Courtney Radsch of the Center for Journalism and Liberty calls Trump's support "unprecedented" and aimed at "defanging major news networks." Furthermore, Freedom of the Press Foundation head Seth Stern told NPR that David Ellison would readily sacrifice the First Amendment, CNN reporters, and HBO filmmakers to expand his corporate empire.

SOURCES:The Guardian | NPR

HOW TO FIX IT

Federal action:

• Support investigations into the Paramount Skydance merger and David Ellison’s intention to “subvert CNN’s editorial independence” on behalf of Trump.

• Pass the CLEAN Mergers Act which would undo mergers completed during Trump’s second term if there is no “proof they did not harm competition.”

• Support demands from the Freedom of the Press Foundation and Reporters Without Borders for records from Paramount on “potentially corrupt acquisitions and deals that could result in relinquishing editorial control of major news outlets to the Trump administration.”

• Coordinate with European regulators to scrutinize the Paramount and Warner Bros. Discovery merger.

Legislation: S.4434 - CLEAN Mergers Act