AI Generated Image
David Ellison Sued by Paramount Investors Over Alleged Trump Side Deal
The Hollywood Reporter • • general
Key Points:
- A fourth lawsuit has been filed by shareholders aiming to block Paramount's acquisition of Warner Bros. Discovery, accusing David and Larry Ellison of making an illegal deal with former President Trump to secure merger approval.
- The complaint alleges the Ellisons promised to overhaul CNN, provide up to $20 million in free advertising, and pay Trump $16 million linked to a prior lawsuit settlement, creating significant financial and legal risks for Paramount.
- The lawsuit claims Trump influenced regulatory decisions to favor Paramount in the bidding war, potentially exposing the company to future government investigations and long-term liabilities.
- CBS News is cited as suffering a severe decline in viewership and talent departures following changes attributed to the Ellisons’ influence, with the network hitting its lowest ratings in 25 years.
- This legal action adds to ongoing opposition from state attorneys general, the Writers Guild of America, and Paramount+ subscribers seeking to block the merger through court orders.
