Press freedom groups are demanding access to Paramount Skydance’s internal documents, citing allegations that the company’s leadership may have promised favors to the Trump administration to win approval for its $111 billion acquisition of Warner Bros. Discovery, according to Los Angeles Times and Daily Mail. The Freedom of the Press Foundation and Reporters Without Borders sent a letter to Paramount Chief Legal Officer Makan Delrahim, expressing concerns that these promises could constitute a breach of fiduciary duties.
Key Takeaways
Press freedom groups are demanding access to Paramount Skydance’s internal documents, citing allegations that the company promised favors to the Trump administration for merger approval. The concerns include potential changes at CNN and CBS under Larry Ellison's ownership.
- Press freedom groups seek Paramount documents over merger concerns
- Allegations of promises made to Trump administration for merger approval
- Concerns raised about potential changes at CNN and CBS under Ellison’s ownership
- Congressional Democrats urge scrutiny of the deal’s impact on jobs and competition
The letter cites reports that Larry Ellison and his son David allegedly promised White House officials they would implement sweeping changes at CNN if the merger is approved. These changes reportedly include removing anchors and commentators that President Trump dislikes, according to Los Angeles Times. The groups argue that such actions could expose Paramount to civil and criminal penalties under bribery and anti-corruption laws.
The letter also highlights recent changes at CBS since the Ellison family acquired the company, including the cancellation of Stephen Colbert’s late-night show days after he characterized a settlement with Trump as a “big fat bribe.” The groups claim that numerous high-profile reporters have left CBS and its ratings have dropped to historic lows under Ellison’s ownership.
According to Reuters, two U.S. House Democrats, Representatives Jamie Raskin of Maryland and Frank Pallone of New Jersey, asked Paramount Skydance CEO David Ellison to disclose if he or the company offered to make changes to CNN's coverage of President Donald Trump in exchange for approval of the merger. The lawmakers wrote that it is clear Trump expects favorable press coverage from Warner Bros. under potential ownership by Paramount Skydance.
The proposed merger still needs approval from regulators in the U.S. and abroad, and industry opposition has been growing. Congressional Democrats have urged California Attorney General Rob Bonta to closely examine how the deal would affect jobs and competition. Over 4,000 film industry workers, including prominent figures like Ben Stiller and Jane Fonda, have signed an open letter imploring regulators to block the merger.
The deal is expected to become one of the largest leveraged buyouts ever, with significant foreign investment. The press freedom groups are being represented by former federal prosecutor Brendan Ballou, who has expertise in private equity transactions and government corruption.
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