Should Paramount Skydance prevail in its $111-billion takeover of Warner Bros. Discovery, the Larry Ellison family would control two historic Hollywood film studios, dozens of cable channels, HBO and two legendary newsrooms, CBS News and CNN.
Concerns about the potential loss of more Hollywood jobs, and questions about newsroom independence dominated a hearing Friday to address Los Angeles’ crisis of shrinking film and TV production jobs.
Paramount wants to wrap up its Warner merger by September — a rapid timetable. The takeover deal, which was struck last month after Netflix bowed out, would put HBO and CNN under the control of Larry Ellison and his son David, the chairman of Paramount, which includes CBS.
Both Ellisons maintain friendly relations with President Trump. Those bonds, along with challenges to legacy media and changes at CBS News in recent months, sparked handwringing during the hearing called by Sen. Adam Schiff (D-Burbank) and Rep. Laura Friedman (D-Glendale).
“The questions surrounding this merger go beyond jobs, contracts and consumers,” Schiff said. “They also go to editorial independence of two of America’s most significant news organizations, CNN and CBS News.”
Trump has long agitated for changes at CNN, and members of his cabinet, including War Secretary Pete Hegseth, have openly cheered for an Ellison takeover of CNN.
To pave the way for the Ellisons’ purchase of Paramount, the company paid $16 million to Trump last summer to settle his lawsuit over edits to a “60 Minutes” interview with Kamala Harris in October 2024. Most 1st Amendment experts had deemed Trump’s suit “frivolous.”
Since the Ellisons took the helm, there has been a change in direction at CBS News and a reduction in its size and scope. Staff members at CNN are bracing for similar changes, including to the tone of its newscasts.
In addition to the long-term health of Los Angeles’ film economy, the merger’s fate could determine “whether we have state sponsored media … or whether we have journalists who can truly follow the story,” Friedman said.
A Paramount spokesperson declined to comment.
The deal is currently before regulators in the U.S. and abroad.
Paramount Chairman David Ellison has vowed to “build a stronger Hollywood,” by increasing the creative output of the two legendary movie studios — Paramount and Warner Bros. — to 30 theatrical releases a year. Warner Bros., which owns such prominent franchises as “The Matrix,” Batman, Harry Potter, “The Big Bang Theory,” and “Friends,” has long been one of Hollywood’s most prolific studios.
But Paramount has suffered from years of under-investment and Ellison and his team have been working to boost the film pipeline.
Ellison has also pledged to keep both studio lots and preserve HBO.
“HBO will continue to operate independently under our ownership, enabling it to create more of the world-class content it is renowened for,” Ellison wrote in the Feb. 28 letter to Schiff and Friedman, responding to their concerns about consolidation.
During Friday’s hearing, the lawmakers turned to former CNN anchor Jim Acosta, who famously jousted with Trump during his first term, for his reflections. He was asked whether any “guardrails” could protect against potential merger harms.
“If this merger goes through, the guard-rails are gone,” Acosta said bluntly. “If we continue to go down this road it will be lights-out for the news industry… We need media options that are not controlled by the wealthiest and most powerful people in the country.”
The hearing occurred the same day that CBS News imposed another sweeping round of layoffs and disbanded its CBS News radio network. It also came the same week as Trump’s Federal Communications Commission approved a massive television station merger, which will allow Texas-based Nexstar Media Group to control more than 250 stations, despite a legal challenge from state attorneys general.
The proposed Paramount-Warner merger would prompt at least $6 billion in cost savings, according to Paramount. Industry veterans warn that billions more in cuts may be necessary to make the deal math work.
A combined Paramount-Warner would carry nearly $80 billion in debt, a legacy of the proposed leveraged buyout and the mergers that came before it.
The hearing at Burbank City Hall —“Lights, Camera, Competition”: Promoting American Film Production,” — was wide-ranging. Award-winning actor Noah Wyle, the star and a producer of Warner Bros.’ “The Pitt,” discussed the need to bring more productions back to Los Angeles where thousands of out-of-work film professionals have been suffering. “The Pitt” is filmed in Burbank.
“Over the last six years, the aggregate effect of projects leaving the state in search of tax credits, the pandemic and last year’s fires has been a near cratering of our once thriving industry,” Wyle said. “We lost 42,000 film and TV jobs between 2022 and 2024.”
The hearing unfolded down the road from the massive Warner Bros. studio complex, and was held to explore ways to boost the Hollywood economy, including the potential for a national tax credit under consideration in Congress. The campaign is intended to keep film jobs in the U.S. amid an increased migration to Britain, where Warner Bros. maintains an expansive studio complex in London, and other countries that offer generous subsidies.
“Work in the entertainment industry is precarious,” said Matthew D. Loeb, International President of the International Alliance of Theatrical Stage Employees (IATSE). “Past studio mergers have meant fewer jobs.”