David Ellison Backing Bipartisan Federal Film Tax Incentive

Key Points:

• Paramount Skydance CEO David Ellison has been quietly supporting a bipartisan bill to establish a federal film tax incentive aimed at keeping content production in the U.S. and providing financial relief to producers.
• Ellison has engaged in exploratory meetings for over six months and recently met with top Republican leaders in Washington, D.C. to discuss the proposed legislation, coinciding with a lawsuit filed by state attorneys general to block his acquisition of Warner Bros.
• The federal film tax incentive would complement California's existing $750 million TV and film tax credit, addressing the lack of a national program and aligning with demands from Hollywood labor unions like the DGA, IATSE, and SAG-AFTRA.
• California AG Rob Bonta and a coalition of 12 states filed an antitrust lawsuit alleging that the $111 billion Paramount-Warner Bros. merger would reduce competition and harm consumers by controlling significant shares of theatrical distribution and cable markets.
• Paramount criticized the lawsuit as legally flawed and argued that delaying the merger would negatively impact entertainment workers, while the DOJ has already approved the deal, leaving Hollywood unions and stars concerned about the potential negative effects of the mega-merger.