Shareholders Sue Ellisons to Block Paramount-WBD Merger Over Alleged $36 Million Trump Deal
Updated
Updated · Hollywood Reporter · Jul 15
Shareholders Sue Ellisons to Block Paramount-WBD Merger Over Alleged $36 Million Trump Deal
3 articles · Updated · Hollywood Reporter · Jul 15
Summary
A fourth lawsuit filed in Delaware Chancery Court seeks to stop Paramount’s acquisition of Warner Bros. Discovery, accusing David and Larry Ellison of breaching fiduciary duties by securing approval through an illegal arrangement with President Trump.
The complaint says the Ellisons promised sweeping changes at CNN, up to $20 million in free advertising and cites a prior $16 million Paramount settlement with Trump, arguing the merger created major legal and financial exposure.
Investors also allege Trump helped Paramount win the bidding war for Warner Bros. Discovery and clear regulatory barriers, leaving the company vulnerable to future congressional and administrative investigations.
The suit adds to challenges already brought by 12 state attorneys general, the Writers Guild of America and Paramount+ subscribers, while claiming CBS News has hit 25-year ratings lows and suffered a talent exodus after editorial changes.