acquisition

The Writers Guild of America sued Paramount on Tuesday, alleging that the company’s planned $111-billion acquisition of Warner Bros. Discovery violates federal antitrust law.
The union said that with fewer competitors, the merged Paramount-Warner Bros. Discovery business would be able to lower costs by reducing writers’ wages and work.

“Writers will be paid less and have fewer employment opportunities,” the WGA said in its lawsuit.

The move comes a day after California Atty. Gen. Rob Bonta led a coalition of 12 Democratic state attorneys general who filed a federal lawsuit to block Paramount Skydance’s $111-billion merger with Warner Bros. Discovery.

Bonta has separately asked a judge in San Francisco for a temporary restraining order to hold up the deal while his case is pending in court.

“We feel we have a very strong case,” Bonta said Tuesday during a town hall meeting. “This proposed merger will raise prices. It will lower quality. It will reduce output. It will hurt the American people, and it’ll hurt the the economy and competition.”

The writers guild’s missive creates a second line of attack against tech scion David Ellison’s industry-reshaping deal.

Ellison’s proposed merger has been moving closer to the finish line after securing approvals from the U.S. Justice Department and numerous other foreign governments. President Trump, an ally of Ellison’s billionaire father Larry Ellison, favors the deal.

David Ellison wants to close the deal by September to avoid a higher payout to Warner Bros. Discovery shareholders.

A Paramount spokeswoman said the company is reviewing the lawsuit.

The proposed merger has sparked fears in Hollywood that it would bring thousands of job losses — similar to past consolidations, including Walt Disney Co.’s 2019 takeover of Fox entertainment properties.

“The Writers Guild of America will not stand idly by as Paramount attempts to violate our country’s antitrust laws and deepen the contraction entertainment workers already feel,” said Writers Guild of America East President Tom Fontana in a statement. “This proposed combined entity would be the largest employer of writers, with tremendous power to suppress our wages, eliminate opportunities for emerging writers, cut jobs across the industry, and produce less programming, affecting the range of storytelling. This merger is not inevitable and we are fighting to stop it.”

The U.S. Justice Department has cleared the way for Paramount Skydance’s $111-billion purchase of Warner Bros. Discovery — a major milestone that moves David Ellison closer to his goal.

After a months-long review, Justice Department antitrust regulators on Friday concluded the combination would not violate federal anticompetition laws. Approval had been expected because President Trump — who has friendly ties with Ellison and his father, tech billionaire Larry Ellison — favors the deal.

The government stopped short of asking Paramount to make concessions or divestitures.

Buying Warner Bros. would allow Paramount — Hollywood’s smallest major company — to bulk up with such prestigious properties as HBO, CNN, HGTV and Food Network. Those would be combined with properties Paramount already owns, including CBS, Comedy Central, Nickelodeon and MTV.

The deal would put two historic film studios and two prominent news organizations under the same roof. It would give Paramount four streaming services, including HBO Max, and dozens of cable channels.

In its four-page closing statement, the Justice Department emphasized that career antitrust regulators — not political appointees — had performed a rigorous review, sifting through some two million documents the government received from dozens of sources, including third-party organizations.

They conducted meetings and deposed senior-level executives and other witnesses.

“These investigative efforts all led to the same conclusion: the film and television industry is highly dynamic, and the proposed transaction is not likely to harm competition or American consumers,” Justice Department regulators wrote in their summary.

Regulators zeroed in on three potential areas of concern. They looked at whether the merger would give Paramount too much power in the streaming video-on-demand market; the traditional linear television channel space; as well as in “studio development, production, or distribution of films for theatrical release,” the Justice Department said.

Competition in streaming would not be crimped, according to the regulators.

“To the contrary, the combined firm is likely to increase competition by offering consumers a more robust competitive alternative to the larger [streaming] offerings,” they wrote.

The antitrust division also found that theatrical distribution and opportunities for creators, including writers and actors, would not be harmed as long as the combined company maintained current production levels.

Ellison has promised to continue releasing 30 films a year with a combined Warner Bros.-Paramount studio. He also has said he would protect the HBO brand.

The proposed merger is controversial because many in Hollywood fear it will bring thousands of job losses, which was the result of past consolidations, including Walt Disney Co.’s 2019 takeover of Fox entertainment properties. More than 5,000 entertainment industry workers, including Jane Fonda, J.J. Abrams, Javier Bardem and Mark Ruffalo, have signed an open letter calling for the merger to be blocked.

There’s a political dimension as well. Paramount’s standing with the Trump administration (Paramount+ is set to televise Sunday’s UFC fight spectacle at the White House to celebrate Trump’s birthday as part of the company’s relationship with the UFC) has given left-leaning groups pause.

They worry about collapsing CNN and CBS News into one unit, particularly after all the turmoil that has ensued at CBS News since the Ellison family bought Paramount in August and installed Bari Weiss as CBS News editor in chief.

This month witnessed a dramatic shakeup at the iconic “60 Minutes,” with top executives and three well-known correspondents tossed out.

“We’ve already seen how far Paramount and the Ellison family are willing to go to diminish a once-proud network and news organization like CBS,” Craig Aaron, co-chief executive of the progressive group Free Press, said in a statement. His group fears the Ellisons would “do worse if they get their hands on Warner Bros., HBO, CNN and all the rest.”

Paramount, for its part, said it was grateful for “the Department of Justice’s thorough review of this transaction, as well as the work of the other agencies that have completed their reviews and provided clearance to date.”

“This deal is pro-competitive, resulting in a stronger company better positioned to compete against dominant technology platforms in an industry increasingly defined by intense competition for audiences, talent, technology, and investment,” Paramount said. “We remain focused on completing the transaction as soon as possible and delivering its benefits to consumers, creators, and the entertainment industry as a whole.”

Paramount wants to finalize its purchase by September.

With Friday’s victory, Paramount is staying on that timetable, but regulators in Europe and Britain have opened their own regulatory investigations and are expected to make their own determinations in the coming months.

Separately, California Atty. Gen. Rob Bonta and other state attorneys general have been scrutinizing the proposed merger, and are widely expected to file a lawsuit, perhaps as early as this month, to try to block it.

Paramount applied for Justice Department approval in December — more than two months before it edged out Netflix in the Warner sweepstakes.

In its statement, the Justice Department said it began its review last fall when it was clear Warner Bros. was in play. Regulators said they were familiar with Warner’s businesses, because the division had scrutinized four other mergers involving the company, dating back to the disastrous AOL-Time Warner merger in 2001.

Paramount’s deal would mark the third time Warner has changed hands in the last decade. AT&T bought the company in 2018 and then sold it to the smaller Discovery four years later. That deal left Warner Bros. burdened by debt, setting the stage for the Ellison takeover.

Justice Department approval could complicate efforts by Bonta and other state attorneys general to block the deal. Should Bonta or others sue, they would have to convince a judge that the nation’s top antitrust regulators failed to make a proper finding despite their lengthy review.

That may pose a high bar for the state officials, who are facing political pressure to stop the deal.

“State AGs must block this merger,” U.S. Sen. Elizabeth Warren (D-Mass.) said in a statement Friday, adding that the Justice Department’s approval was “terrible news for every American who doesn’t want Trump-aligned billionaires to control what they watch and how much they pay.”

The Justice Department said state attorney general offices had participated in its investigation, which allowed federal and state officials “to share information with each other and for the States to attend and participate in the [antitrust] Division’s depositions.”

Last month, David Ellison appeared before the regulators in a two-hour session.

Paramount’s Chief Legal Officer Makan Delrahim, who previously served as the nation’s top antitrust regulator during the first Trump administration, also was busy quarterbacking Paramount’s outreach with regulators.

The Ellison family-controlled Harbor Lights Entertainment has sold its Showcase Cinemas theater chain to a major European cinema group in a $30-million deal.

Belgium-based Kinepolis will soon operate 13 cinemas across the United States. Seven are in Massachusetts, four in New York, one in Ohio and one in Rhode Island.

David Ellison, who is now in charge of Paramount Skydance, acquired National Amusements last year from the Redstone family. He renamed the company Harbor Lights. National Amusements was the start of Redstone’s media empire, which at one point included control of CBS, Paramount and Viacom.

Paramount is in the process of acquiring Warner Bros. Discovery in a $111-billion deal. Under the proposal, Ellison has said the two studios will release 30 films per year. But he and his team would also have to make $6 billion in cuts and take on $79 billion in deal debt.

The deal is awaiting regulatory approval, but officials in several state states recently announced plans to try to block the merger. The potential lawsuit would seek to challenge the proposed merger on antitrust grounds, arguing it would decrease competition, lower wages and lead to widespread job losses.

With the sale of the theaters, Kinepolis will add 164 screens to its portfolio. The company was formed in 1997 and currently operates 63 cinemas in Europe and nearly 60 theaters in the U.S. and Canada.

The newly acquired theaters welcomed about 4 million visitors and generated more than $90 million in revenue last year.

“This acquisition allows us to expand our market position in the U.S. from Michigan to the East Coast with an asset and a team that enable us to implement Kinepolis’ operational model and corporate strategy, ultimately enhancing the experience for moviegoers in these markets,” Eddy Duquenne, Kinepolis’s chief executive, said in a statement.

The company said Showcase Cinemas would retain its name. It expects the acquisition to be complete by the end of the summer.

Times staff writer Wendy Lee contributed to this report.

The state of California is leading an effort to prepare a possible lawsuit that could thwart Paramount Skydance Corp.’s planned acquisition of Warner Bros. Discovery, a potential obstacle for the $111 billion deal.

The lawsuit, which could be filed as early as this month, would likely involve multiple states, according to a source familiar with the deliberations who was not authorized to comment publicly.

The litigation would seek to challenge the proposed merger on antitrust grounds, arguing it would thwart competition, lower wages and lead to widespread job losses.

“The Paramount acquisition of Warner Brothers remains an active investigation, and we do not have any updates to share at this time,” said California Atty. General Rob Bonta’s office in a statement.

In a statement, Paramount said it “will continue to fight against any attempt to derail a deal that plainly benefits consumers, creators and the industry as whole.”

“Opposing this deal means opposing expanded consumer choice, new opportunities for creators and workers, and greater competition throughout the creative ecosystem — the opposite of what antitrust law is meant to achieve,” the company added.

Warner Bros. Discovery shareholders in April approved the sale of the company to Paramount after Netflix dropped out of the auction.

Under Paramount Chairman David Ellison’s proposal, Warner investors would receive $31 a share, nearly four times the price of the company’s stock in April 2025. He also said he will keep both studios’ release schedules of 15 movies a year for a total of 30 films a year.

Nonetheless, Ellison and his team have vowed to make $6 billion in cuts following the merger, which requires regulatory approval. The combined company would have to contend with $79 billion in deal debt.

The prospect of substantial job cuts during a period of downsizing in Hollywood has ignited widespread opposition to the sale.

Thousands of people who work in the TV and film industry, including actor Joaquin Phoenix and director-writer-producer JJ Abrams signed an open letter opposing Paramount’s planned acquisition of WBD, saying it would lead to fewer production jobs and fewer choices for consumers. Others have also raised concerns about the impact it could have on content.

“The consequences would be felt nationwide, from destroying CNN the way that Ellisons have devastated CBS to entertainment industry job losses and consumers losing access to independent voices and a competitive market,” said Norm Eisen, executive chair of Democracy Defenders Fund, one of the groups that organized the open letter. “State attorneys general have both the authority and the responsibility to act when a transaction of this scale directly threatens the public’s interest, and I hope states across the country will join any effort to challenge this deal,” Eisen said in a statement.

The potential lawsuit, first reported by Bloomberg and Reuters, is being considered by other states, including New York and Colorado.

“Paramount and Warner Bros. haven’t cleared regulatory scrutiny,” Bonta told The Times in March. “My office has an open investigation into [the deal] and we intend to be vigorous in our review.”

Despite the potential obstacle, Raymond James equity analysts said in a note on Thursday that they “still believe the deal is likely to close.”

Last month, Paramount hired antitrust attorney Jeffrey Kessler to defend its planned acquisition of Warner Bros. Discovery. Kessler recently led a case for state attorney generals against concert promoter and ticketing firm Live Nation, resulting in a win for states, including California.

“We also think there are win/win solutions to be had particularly in California given exodus of production from CA in recent years and efforts to bring production back to Hollywood,” the analyst said in their note.

After a complete shakeup at CBS’ “60 Minutes,” ousted correspondent Cecilia Vega said she had been facing pressure to insert political bias into her stories and dealing with censorship.

“I very much fear what comes next for … the future of the legendary broadcast,” Vega said in a social media post on Thursday referring to “60 Minutes.”

Vega, who had worked at the newsmagazine for three years, was fired alongside the program’s executive producer, Tanya Simon, and fellow correspondent Sharyn Alfonsi, who notoriously clashed with CBS News Editor in Chief Bari Weiss over a segment on President Trump’s immigration policies.

The latest shakeup follows multiple controversial moves by Weiss, who’s set on remaking the institution long defined by tradition. She arrived at CBS News in October with no television experience, installed by Paramount Chief Executive David Ellison after he acquired her digital news outlet, the Free Press, with a mandate to change the network.

Ellison’s political intent has been brought into question as he owns CBS’ parent company. The billionaire and his father, Larry Ellison, built a friendly relationship with the Trump White House as Paramount’s acquisition of Warner Bros. Discovery still needs regulatory approval.

Ellison’s pronouncements that CBS News needs to move more to the political center has led to the perception that the network is trying to placate Trump with more positive news coverage, even as “60 Minutes” has remained tough with its White House reporting.

“Our responsibility is to preserve that legacy and vital mission by building a show that thrives in the 21st century,” wrote Weiss in her note to staff. “That requires a new approach: expanding ’60 Minutes’ beyond a one-hour television broadcast, deepening its role across CBS News.”

Vega claims, in her statement, that “in recent months, my producing teams and I have experienced efforts to insert political bias into our stories.” She also said that reporting teams are holding back on submitting specific story pitches, due to the “fear of the internal repercussions.”

“Let’s call this what it is: censorship, both imposed and self-driven,” Vega wrote. “It is dangerous for the show and dangerous for democracy.”

She said that in working at “60 Minutes” she’s had to keep stories rooted in fact and away from “questionable editorial suggestions.”

“I know from many conversations with colleagues that many producing teams and correspondents working on the show today have had to fight to maintain editorial independence with regularity,” Vega said. “I am far from the only ’60 Minutes’ correspondent who has asked herself, ‘What is my personal red line? How much can I push back before I pay the price?’”

In a statement, a CBS News representative said, “We respect Ms. Vega and her contributions, but her claims are not based in reality.”

Vega joined the newsmagazine in 2023, becoming the program’s first Latina correspondent. Before that, she worked for over a decade at ABC as the network’s chief White House correspondent and co-anchoring “Good Morning America.”

Several journalists like ABC’s John Quiñones and former Univision anchor Jorge Ramos offered words of support for Vega’s remarks. Quiñones commented, “Journalism is stronger because of your voice, your courage and your story-telling, Cecilia,” and Ramos wrote in Spanish that he respects and admires her.

Lupa Systems, the media and tech holding company owned by James Murdoch, is set to acquire nearly half of Vox Media.

As part of the deal, Murdoch’s company will own Vox Media’s podcast network, Vox.com and New York Magazine, once an asset of his father, industry giant Rupert Murdoch. Terms of the deal were not disclosed, but the price tag was reportedly over $300 million, the New York Times reported citing people familiar with the deal. The goal of the investment is to bring “influential journalists, top-rated podcasts, and digital brands with large social footprints” to Lupa and help grow its media portfolio, the company announced Wednesday.

“This acquisition aligns well with our existing holdings and investments and reflects both our interest in the forward edge of culture and our deep commitment to ambitious journalism and agenda-setting conversations,” Murdoch said in a statement.

The three new assets will function as a subsidiary of Lupa Systems and will keep the name Vox Media. The deal includes New York Magazine’s popular verticals like The Cut, Vulture and Intelligencer, as well as Vox’s most successful podcasts like “Today, Explained” and “Pivot with Kara Swisher and Scott Galloway.” Jim Bankoff, Vox Media’s current CEO, will continue to lead the company.

The other Vox Media properties, which Murdoch did not purchase, include websites like Eater, The Dodo and The Verge. These platforms will be run under an unnamed new company by the current president of Vox Media, Ryan Pauley.

This investment strengthens Lupa Systems’ position in the evolving media landscape. The business has other holdings including the parent company of Tribeca Film Festival, the owner of Art Basel, Robert DeNiro and Jane Rosenthal’s entertainment company Tribeca Enterprises, and Bodhi Tree Systems, an investment platform behind a popular Indian streaming service.

This is one of the largest deals Murdoch has closed since he and his family resolved a $3.3-billion dispute last year. The conflict centered on the future of the family’s media empire, which includes Fox News, The New York Post and The Wall Street Journal. In the settlement, James Murdoch received roughly $1 billion and his elder brother, Lachlan, assumed power over the family’s assets.

Before the legal blowout, Murdoch previously served as the chief executive of major global media companies like 21st Century Fox and Europe’s Sky Group.

The billionaire told the New York Times that, with this new acquisition, he didn’t want a “daily news business.” He wanted “longer-form, thoughtful journalism that can really speak to the culture.”