UPDATE with Paramount statement: Paramount has pushed back on a recent shareholder lawsuit, describing the claims as “recycled allegations that have already been reported and already addressed.”
The company said no commitments from either David Ellison or Larry Ellison have been made to any government body, State Attorney General, or federal agency regarding the future of CNN or any other news property, other than the goal to deliver truth‑based journalism, a spokesperson said Wednesday.
In a reference to the Skydance‑Paramount transaction announced in summer 2025, the statement added that, “As with any transaction that requires regulatory approval, Skydance executives and its representatives have had routine and customary interactions with government officials, including with the Administration, Congress, and federal regulators… throughout its history and during the review of the proposed acquisition of Paramount, Skydance has fully complied with all applicable laws, including our nation’s anti‑bribery laws.”
The Warner Bros. Discovery combination “stands on its own merits,” the statement continues. “Combining these two libraries and platforms gives consumers more choice, not less — greater investment in original programming, a stronger competitor to streaming rivals, and a more durable footing for journalism and storytelling alike. We remain confident in the merger’s fundamentals and will continue toward closing.”
PREVIOUSLY: A Paramount shareholder, Paul Robbins, filed a derivative suit against CEO David Ellison, his father Larry Ellison, and the company’s 10‑member board in Delaware Chancery Court. The lawsuit alleges breach of fiduciary duty in the pursuit of the Warner Bros. Discovery merger, claiming that editorial independence was traded for regulatory approval, including alleged promises to reshape CNN coverage to favor political interests and settle a “frivolous” lawsuit brought by the President against 60 Minutes.
The suit is supported by the Freedom of the Press Foundation and the Public Integrity Project. It asserts that the Ellisons promised unlawful benefits—such as up to $20 million in free advertising and settlement of Trump’s lawsuit against CBS— in exchange for federal approval, and that they agreed to make CNN’s coverage more favorable to the President.
Other legal challenges to the $110 billion deal have emerged, including an antitrust suit led by a coalition of state attorneys general, a lawsuit from the Writers Guild of America, and a challenge from a group of Paramount+ subscribers seeking to block the merger.
Paramount has denied any side agreements for advertising or political favors, maintaining that its interactions with government officials are routine and fully compliant with applicable laws.