Paramount Rejects $20 Million Bribery Claims as $110 Billion WBD Merger Faces New Lawsuit
Updated
Updated · Deadline · Jul 16
Paramount Rejects $20 Million Bribery Claims as $110 Billion WBD Merger Faces New Lawsuit
3 articles · Updated · Deadline · Jul 16
Summary
Paramount said the latest shareholder suit merely repeats allegations it has already addressed, and denied that David or Larry Ellison made any commitments to government officials about CNN or other news outlets.
The company said Skydance's contacts with the administration, Congress and federal regulators were routine for a deal under review, and insisted it fully complied with anti-bribery laws while pursuing the merger.
Paul Robbins' derivative suit in Delaware Chancery Court accuses the Ellisons and Paramount's 10-member board of breaching fiduciary duties by trading editorial independence for Trump administration approval.
The complaint cites reported promises of up to $20 million in free advertising, a $16 million CBS settlement tied to Trump, and possible CNN personnel changes; Paramount has denied any side advertising deal.
The filing adds to mounting resistance to the $110 billion Warner Bros. Discovery transaction, which is already facing antitrust action from state attorneys general and other lawsuits seeking to stop it.