Paramount chief executive David Ellison breaks silence on Warner Bros mega merger
The chief executive of Paramount-Skydance says criticism of $110bn (£82m) merger with Warner Bros. relies on outdated Hollywood model.
Paramount Skydance CEO David Ellison has publicly addressed, for the first time, the proposed $110 billion (£86 billion) acquisition of Warner Bros. Discovery, defending the deal against critics.
In an op-ed featured in The New York Times, Ellison contended that objections to the substantial merger are based on an outdated perception of Hollywood. He refuted allegations that the combined entity would wield excessive market power or compromise the autonomy of news divisions.
His comments come amidst an ongoing and rigorous legal dispute between Paramount and Warner Bros. to finalize the significant transaction, which recently experienced a pause.
Regarding the future of Paramount's CBS and Warner's CNN, Ellison affirmed that both news organizations would maintain their impartiality and commitment to delivering unbiased reporting.
To allay antitrust worries, Ellison noted that a merged Paramount-Warner would represent under 20% of television viewing in the U.S., a figure that drops to approximately 13% when YouTube is included. He emphasized that this combined entity would still contend with tech behemoths such as Netflix, Amazon, and Apple, whose financial capacities "dwarf ours."
Ellison also underscored plans to boost traditional content creation, pledging 30 theatrical releases and 170 television series annually, supported by over $30 billion in yearly content investment. He asserted that increasing content investment is crucial for supporting creative professionals in an environment dominated by technology platforms driven by engagement algorithms.
Despite these assurances, Ellison conceded that "nobody can dictate what audiences will love."
The legal challenges intensified in July when 12 state attorneys general, spearheaded by California's Rob Bonta, along with the Writers Guild of America, initiated antitrust lawsuits to block the merger. They argued that the merger would contravene the Clayton Act by diminishing competition and adversely affecting opportunities for writers.
While the U.S. Department of Justice and international regulatory bodies, including the European Union, have already given their consent to the transaction, domestic legal hurdles have effectively stalled its progression in the U.S. Federal proceedings are currently suspended, with the trial rescheduled for March 2, 2027.