paramount

In remarks that are likely to stoke concerns through the corridors of CNN, Secretary of Defense Pete Hegseth said Friday he is looking forward to Paramount’s ownership of the network.

“The sooner David Ellison takes over that network the better,” Hegseth said during a morning briefing.

Hegseth’s invoking the name of the Paramount Skydance chief executive — whose company will take control of CNN once its deal to merge with Warner Bros. Discovery is finalized — amplified the fear many have that the cable news channel will seek to appease the Trump administration.

The typically combative Hegseth made the remarks after blasting CNN’s reporting on the U.S. military action in Iran. CNN said the Trump administration underestimated the impact its attack would have on the Strait of Hormuz, echoing the claims of other media outlets. Oil tankers have been unable to get through the passage due to attacks by Iranian drones, escalating gas prices as a result.

“CNN doesn’t think we thought of that,” Hegseth said. “It’s a fundamentally unserious report.”

Paramount declined to comment on the remarks by Hegseth, a former Fox News host who has a lot of experience in bashing the mainstream media. A CNN representative said the network stands by its reporting.

Trump has a friendship with Ellison’s father, Larry, and the two have reportedly discussed changes to CNN once Paramount takes ownership. But it’s the rare time such expectations have been offered up publicly by a top member of the administration.

Trump, who has long expressed disdain for CNN, expressed his preference for Paramount to prevail over Netfilx in its pursuit of Warner Bros. Discovery so that CNN would be in the hands of the Ellisons.

In his last public statement about CNN, David Ellison said he wants to be in the “truth business” and insisted there would be no corporate interference in the network’s coverage.

“CNN is an incredible brand with an incredible team, and we absolutely believe in the independence that needs to be maintained, obviously, for those incredible journalists, and we want to support that going forward,” Ellison told CNBC on March 5.

Paramount has been forced to battle the perception of that its news organizations will tilt to the right under its stewardship. One of David Ellison’s first moves after his company Skydance Media took over CBS was installing Bari Weiss as editor in chief of the network’s news division despite having no experience in TV news. Ellison acquired Weiss’s the Free Press, a centrist digital news site that often targets excesses of the political left and is staunchly pro-Israel.

The acquisition and the appointment of Weiss were seen as a way to help smooth the regulatory approval of Skydance’s acquisition of Paramount last year. CBS News has been under intense scrutiny for signs that is shifting its coverage to please the administration.

A number of CBS News journalists unhappy over the division’s direction under Weiss have already departed. Scott MacFarlane, the Justice Department correspondent who announced his exit Monday, was said to be particularly unhappy over the network’s handling of the anniversary of the Jan. 6, 2021, attack on the U.S. Capitol by Trump supporters who wanted to overturn the 2020 election results.

Anderson Cooper also passed on signing a new deal with “60 Minutes,” where he has been a correspondent since 2007. But with the merger, the CNN anchor will still be a part of the company.

Weiss’ has had some early missteps. The Jan. 6 story was among several highly criticized segments during the first week of “CBS Evening News with Tony Dokoupil.” She delayed a “60 Minutes” segment on the government’s use of an El Salvador prison to detain undocumented migrants for more reporting, only to have it air with minor changes. The delay prompted charges that Weiss was trying to placate the White House, which CBS denied.

Notwithstanding the controversy, some insiders contend there has
not been a significant shift in how CBS News is covering most stories.

The network was among the first to report that the severity of injuries to U.S. service members from an Iranian drone attack in Kuwait were far more serious than the government initially said.

CBS News is also moving ahead with the hiring of Jeremy Adler, once a top advisor to former congresswoman and outspoken Trump nemesis Liz Cheney, to handle communications for Weiss, according to people familiar with the plan who were not authorized to speak publicly.

Axios — citing unnamed sources — reported that White House officials are angry about Adler joining the network, as Cheney was vice chairman of the committee that investigated the Jan. 6 insurrection.

Cheney, the daughter of former Vice President Dick Cheney and one of the most conservative members of Congress during her time, supported Trump’s opponent Kamala Harris in the 2020 election.

Adler was Cheney’s deputy chief of staff and senior communications advisor from 2019 to 2023. He also served as a regional press secretary on now-Secretary of State Marco Rubio’s 2016 presidential campaign.

California Atty. Gen. Rob Bonta called out the federal government for largely vacating its role as antitrust regulator, saying it’s now up to California and other states to look out for consumers’ interests.

Bonta, the state’s top law enforcement officer, spoke Thursday at a Capitol Forum conference in Beverly Hills on antitrust issues and the future of Hollywood. His appearance came just days after the U.S. Department of Justice settled its case against Live Nation and Ticketmaster a week into a high-stakes trial, leaving state attorneys general to try to continue to fight that battle on their own.

The Justice Department’s about-face revealed a major fracture in antitrust enforcement. State attorneys general — particularly in Democratic-controlled states — say their role is becoming increasingly important to challenge alleged anti-competitive behavior.

President Trump has “abdicated the federal administration’s responsibilities to hold big corporations accountable to the law and protect a competitive marketplace,” Bonta said.

Bonta’s appearance comes as another major Hollywood merger appears to be sailing through its federal review with Trump’s tacit approval: Paramount Skydance’s proposed $110-billion deal for Warner Bros. Discovery.

The merger, announced late last month, has rattled Hollywood unions and some antitrust experts. It would combine legendary film studios, robust television production units and two prominent news organizations, CBS News and CNN, as well as dozens of cable channels.

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

California could bring its own lawsuit to block Paramount’s takeover, or join with other state attorney generals to launch legal proceedings to try thwart the deal or extract concessions — even if the Justice Department ultimately clears David Ellison’s deal.

Bonta outlined various concerns, including a continued contraction of Hollywood’s labor market, the consolidation of streaming services — Paramount+, HBO Max, Pluto and Discovery+ — and potentially higher prices and lower wages.

“There’s no industry as iconically California as the entertainment industry,” Bonta said. “It’s baked into California’s DNA.”

California Attorney General Rob Bonta vowed to drill into Paramount Skydance’s proposed takeover of Warner Bros. Discovery.

(Paul Kuroda/For The Times)

Paramount filed for Justice Department approval in December .

The maneuver started the regulatory review clock. And last month a key deadline for the Justice Department to raise concerns about Paramount’s proposed acquisition of Warner passed without comment from Washington.

Paramount has said it could finalize its deal by the end of September.

The architect of Paramount’s strategy, Chief Legal Officer Makan Delrahim, delivered his own keynote address, stressing the Ellison-family’s acquisition of Warner Bros. would not reduce competition and instead would be “a huge win for the creative community.”

“Paramount’s transaction with Warners is an opportunity to expand output, to grow the number of movies, shows and other content we are offering to the consumer,” Delrahim said, adding that will result in “more job opportunities,” including in Southern California, which is reeling from a production flight to other states and countries.

Delrahim conceded that Paramount was driven to buy Warner Bros. — it prevailed after Netflix bowed out — because Paramount is not big enough to compete in an industry dominated by technology giants.

He criticized the proposed Netflix deal, saying he doubted it would have passed regulatory muster due to Netflix’s strength in the streaming market.

Paramount still needs to win the support of Warner shareholders, and also gain regulatory approvals from the Justice Department, state attorney generals and overseas governments.

“This deal is a big win for Los Angeles, for California and for all communities that embrace filmmaking,” Delrahim said.

Tech mogul Larry Ellison has personally guaranteed the $45.7-billion in equity needed for the transaction . The company would have to take on more than $60-billion in debt — raising concerns among Hollywood workers about large-scale cost-cuts and layoffs.

“What is Paramount doing is …paying $110 billion to take out a rival,” said attorney Ethan E. Litwin, a former lawyer for TV networks, who also spoke at the conference. “When you take out a major rival in a highly concentrated industry … you are taking out competitors for projects. “

Bonta declined to say whether he would try to stop the Paramount-Warner merger.

Progressive State Leaders Committee, an affiliate of the Democratic Attorneys General Association, in December hired Rohit Chopra, a former director of the Consumer Financial Protection Bureau and former commissioner on the Federal Trade Commission, as a senior advisor. He will help coordinate efforts as the group, including Bonta, wages antirust enforcement battles.

“The federal government is just not enforcing the law,” Chopra said during Thursday’s conference. “Our states are really the last line of defense.”

It took months of effort, lobbying and mounds of cash for Paramount Skydance to finally clinch its prize of Warner Bros. Discovery.

Now, however, the David Ellison-led company faces a long and challenging road to merge these two media giants and set it up for a successful future.

Key to that will be striking a delicate balancing act between investment and paying down its debt load of $79 billion, which is massive even by Hollywood standards.

Notably, the figure is even greater than Warner’s nearly $55 billion of debt post-merger with Discovery, a burden that hamstrung the company for years and led to successive rounds of layoffs and relentless cost cutting.

Last week, my colleague Meg James wrote about the concerns Fitch Ratings and S&P Global Ratings have about Paramount’s credit, given the mountain of debt the company will now carry. Fitch downgraded its credit to BB+ — “junk” territory — from BBB-, and S&P Global Ratings placed the company’s ratings on “negative watch.”

Carrying that amount of debt comes with significant risks.

For one, a company with a lot of debt that is “junk”-rated is going to be under pressure to cut costs. “Junk status” means a company’s debt is rated below the level that credit agencies consider investment grade. Such a rating means it can be more expensive to refinance or take out new loans, raising the cost of capital.

Paramount executives have already said they plan to find $6 billion in “synergies” within three years, though they’ve emphasized that the majority of their cost cutting will come from “non-labor sources,” including consolidating their streaming technology and cloud providers, combining IT systems across the company and “optimizing the combined real estate footprint and the broader corporate overhead,” among other ideas.

And as I wrote last week, most Hollywood observers and those familiar with Ellison’s plans predict that Paramount will be forced make steep layoffs to offset the cost of the deal and eliminate overlapping roles and functions between the two historic studios.

At the same time, in order to compete with well-funded rivals, Paramount-Warner Bros. will also need to invest in new programming — something that can be difficult for a heavily leveraged business .

Paramount executives have said their cost-cutting efforts won’t include a reduction in production capacity, and Ellison has reiterated that there will be continued spending on programming. Beyond content, he’ll also likely need to invest in improving the technology along with the look and feel of the streaming platforms.

“Whether or not they have the capital to do all of that and to try to get their leverage down is something I’m curious to hear about,” said Naveen Sarma of S&P Global Ratings.

It’s possible that Paramount may not be able to pursue a good opportunity in the future because it has used up all its debt capacity and can’t raise additional financing, said Kelly Shue, a professor of finance at Yale School of Management.

“It might cause them to underinvest in good projects in the future,” she said.

And the company needs to spend on good projects.

The economics of this deal hinge on the combined heft of Paramount and Warner’s two libraries and valuable intellectual property, which will unite Harry Potter, DC Studios, SpongeBob SquarePants and “Mission Impossible” all under one roof.

Building up its streaming platform, which will combine Paramount+ with HBO Max, is important for competing with the behemoth Netflix, which bowed out of the Warner Bros. auction.

And on the theatrical side, Ellison has said the combined company will release 30 films a year — 15 from each studio. That would be a substantial increase from 2025, when the two companies released 18 films — eight at Paramount and 10 from Warner Bros.

“While studios content budgets might not come under immediate focus for cost cutting, we have a hard time seeing no content costs savings considering opportunities to reallocate or pull back from at least the linear networks,” MoffettNathanson’s Robert Fishman wrote in a note to clients last week.

Of course, all of this would come only after the deal’s completion. On the immediate horizon, Paramount needs to secure international regulatory approval as well as at home. Although state attorneys general including Rob Bonta of California have said this is not a “done deal,” most analysts expect that any opposition there is only likely to slow — not stop — the transaction.

A very masculine year in film

A recent study from San Diego State University put a number on something we all suspected: The percentage of female protagonists in the top 100 films last year dropped. A lot.

Female protagonists made up just 29% of the top-grossing films in 2025, down from 42% in 2024, according to the university’s annual study of women’s representation in top films. A selection of film titles from the last year says it all: “The Running Man,” “A Working Man,” “Superman.”

That 29% figure has, unfortunately, been very consistent over the years — it was the same in 2016 and has largely hovered in the range of high 20s to low 30s for the last decade, with a few exceptions (40% in 2019 and 42% in 2024).

Focusing on just the protagonists in the top 100 films means that small fluctuations can change that percentage greatly.

But when the study looked at a broader sample size of the more than 1,900 characters in those films, the results weren’t much better.

The percentage of women in speaking roles was 38%, up just 1% from 2024. And the percentage of major female characters declined to 36% in 2025 from 39% the year before.

The fact that these figures have not moved much, in spite of the countless panels and think pieces about the issue, suggests there isn’t much will in Hollywood to change, said Martha Lauzen, author of the study and founder and executive director of San Diego State’s Center for the Study of Women in Television and Film.

“Representation is social relevancy and social capital,” she told me. “So when you see fewer women than men, that’s a message.”

Stuff We Wrote

Film shoots

Number of the week

Walt Disney Co. and Pixar’s “Hoppers” came in big at the box office this weekend with a $46-million opening in the U.S. and Canada — the strongest domestic debut for an original animated movie since “Coco” in 2017. Globally, the film made $88 million.

The reception is an encouraging sign for original animated movies, which have largely struggled at the box office since the COVID-19 pandemic while their sequel counterparts have shined.

What I’m watching

Several months ago, some friends and I started a movie club, where we each nominate a film we want to watch and we rotate who gets to make the final selection. Last week, we watched the 1996 comedy “First Wives Club,” which I had never seen but loved for its goofy antics, unexpected song-and-dance number and the focus on the enduring power of female friendships.

Paramount’s $111-billion deal to acquire Warner Bros. Discovery will put two of the most storied journalism brands — CNN and CBS News — under one roof.

The combination has been proposed before with the aim of consolidating news-gathering costs. Those plans fell apart largely over who would be in control.

But if the Paramount-WBD transaction is approved by regulators, CNN and CBS News will be forced into potentially rocky marriage where they will have to sort out leadership roles, personnel and editorial direction.

It’s still too early to determine what those moves will be and how widely they will be felt.

Last week CNN Chief Executive Mark Thompson told his troops to avoid “jumping to conclusions about the future.”

But what is certain is that every permutation will be scrutinized closely due to the fraught relationships both CNN and CBS News have with the Trump administration.

“There have been many conversations over the years about combining CBS News and CNN,” said Jon Klein, a digital media entrepreneur who previously held leadership roles at both organizations. “But this time, it’s different. The business case always made sense — but today you’ve got the overlay of the political agenda.”

Before Paramount prevailed in its bid for CNN’s parent, Paramount Chief Executive David Ellison’s father Larry Ellison reportedly discussed changes to the network with Trump. For years, Trump has made CNN the poster child of his “fake news” claims and impugned many of its journalists.

“What has David Ellison and Larry Ellison promised Donald Trump with regard to what they’re going to do with CNN?” said one former executive. “Before you even get through the hurdles of doing this, that’s the overriding question. Are they going to fire anchors Trump doesn’t like?”

There is also apprehension at CBS News, where David Ellison installed Bari Weiss as editor-in-chief in October, with a mandate to have network’s coverage appeal to the political center.

CBS News editor-in-chief Bari Weiss with Turning Point USA’s Erika Kirk at a town hall that aired Dec. 20.

(CBS Photo Archive / CBS via Getty Images)

Weiss — founder of the independent media company The Free Press — came into the role with no experience running a TV news organization, building her reputation as an opinion writer with contrarian views and a disdain for woke ideology.

The former New York Times opinion writer, who is staunchly pro-Israel, drew criticism over the weekend for putting a fire emoji over a comment criticizing New York City Mayor Zohran Mamdani’s condemnation of the U.S. military action in Iran — an unusual public reaction for the head of a major news organization.

Weiss wasted no time taking on the prestigious CBS news magazine “60 Minutes,” which has long been a stubbornly independent operation. She delayed a story on the harsh El Salvador prison used by the U.S. to house undocumented migrants saying it needed more reporting. The story’s correspondent Sharyn Alfonsi accused CBS News management of placating the White House, turning the decision into a public relations fiasco for the network.

Significant changes are coming to “60 Minutes” later this spring, with one or more of its correspondents possibly being replaced, according to people familiar with Weiss’ plans who were not authorized to comment. Weiss has also expressed interest in hiring right-leaning on-air talent for CBS News.

Weiss arrived after Paramount settled a Trump lawsuit with the dubious claim that a “60 Minutes” interview with then-Vice President Kamala Harris was deceptively edited to aid her 2024 presidential election campaign against him.

The willingness to settle the suit was largely seen as Paramount capitulating to Trump in order to get government approval of its merger with Skydance Media. The Ellisons’ tight relationship with Trump was also seen as an asset in their successful pursuit of Warner Bros. Discovery.

The stew of issues bubbling through the transactions is why most of the rank and file at CNN rooted for Netflix to prevail in its bidding for Warner Bros. Discovery. The Netflix bid for WBD did not include CNN or the company’s cable networks, which in the words of one insider would have made it “a stay of execution.”

Now CNN staffers, speaking on the condition of anonymity, are bracing for upheaval. When they look at CBS News navigating the changes under Weiss, they are reminded what they went through after Warner Bros. Discovery took over their network and tried to push the coverage to the center.

After a declaration by WBD Chief Executive David Zaslav that the network needed to be more accommodating to conservative voices — and the telecast of a rowdy Trump town hall — CNN experienced an exodus of viewers.

But the biggest fear that the merger brings is consolidation and the loss of jobs. CNN has 3,400 employees while CBS News is at around 1,000. Cost-cutting is expected to be aggressive across the combined Paramount-WBD, which will have a mountain of debt to service.

The parent companies of CBS and CNN have discussed merging or sharing news-gathering operations and on-air talent numerous times over several decades. In 2019, Viacom, the CBS News parent at the time, had a deal in place to pay CNN an annual license fee to provide international coverage.

Under that plan, CBS would have maintained a few of its signature overseas correspondents, while shuttering its bureaus around the world. But Viacom backed out of the deal.

CNN’s international coverage has long been its calling card and its likely the network will handle that reporting for CBS News once Paramount takes ownership.

Combining the news-gathering operation stateside will be trickier, as CBS News has employees and vendors that operate under contracts with the Writers Guild of America East, SAG-AFTRA and other unions. CNN is a non-union shop.

Resolving the union issue has been a snag in every previous discussion to combine CBS News and CNN over the years, according to several former executives at both outlets.

CNN news anchor Anderson Cooper in New York in 2016.

(Associated Press)

Another development worth watching is what role Anderson Cooper will play in the merged operation. Cooper signed a new deal with CNN last year, but turned down an offer to remain as a “60 Minutes” correspondent, a role he’s had since 2007.

CBS News has pursued Cooper several times over the years to be its evening news anchor. There was even a proposal in 2018 for him to helm “CBS Evening News” while keeping his nightly prime time program on CNN. That idea was shot down at CNN, where leadership believed he was unique to the network’s brand.

In a statement, Cooper cited a desire to spend more time with his two children as the reason for passing on another “60 Minutes” deal. However, associates have said his wariness over the direction of CBS News under Weiss made his decision easier.

Now Cooper is likely headed into the CNN-CBS News tent, which may make him feel a bit like Michael Corleone in “Godfather III” when he said “Just when I thought I was out, they pull me back in!”

Paramount Skydance’s jubilation over its come-from-behind victory to claim Warner Bros. Discovery has entered a new phase:

Call it the deal-debt hangover.

Two major ratings agencies have raised concerns about Paramount’s credit because of the enormous debt the David Ellison-led company will have to shoulder — at least $79 billion — once it absorbs the larger Warner Bros. Discovery, bringing CNN, HBO, TBS and Cartoon Network into the Paramount fold.

Fitch Ratings said Monday that it placed Paramount on its “negative” ratings watch, and downgraded its credit to BB+ from BBB-, which puts the company’s credit into “junk” territory. Fitch said it took action due to “uncertainty” surrounding Paramount’s $110-billion deal for Warner Bros. Discovery, which the boards of both companies approved on Friday.

S&P Global Ratings took similar action.

To finance the Warner takeover, Ellison’s billionaire father, Larry Ellison, has agreed to guarantee the $45.7 billion in equity needed. Bank of America, Citibank and Apollo Global have agreed to provide Paramount with more than $54 billion in debt financing.

“Potential credit risks include the prospective debt-funded structure, Fitch’s expectation of materially elevated leverage and limited visibility on post-transaction financial policy and capital structure,” Fitch said.

Late last week, Paramount sent $2.8 billion to Netflix as a “termination fee” to officially end the streaming giant’s pursuit of Warner Bros. That payment paved the way for Warner and Paramount’s board to enter into the new merger agreement.

Paramount hopes the merger will be wrapped up by the end of September. It needs the approval of Warner Bros. Discovery shareholders and regulators, including the European Union.

Paramount executives acknowledged this week the new company would emerge with $79 billion in debt — a considerably higher total than what Warner Bros. Discovery had following its spinoff from AT&T. That 2022 transaction left Warner Bros. Discovery with nearly $55 billion of debt, a burden that led to endless waves of cost-cutting, including thousands of layoffs and dozens of canceled projects.

Warner still has $33.5 billion in debt, a lingering legacy that will be passed on to Paramount.

Paramount plans to restructure about $15 billion in Warner Bros. Discovery’s existing debt.

Paramount CEO David Ellison at a 2024 movie premiere for a Netflix show.

(Evan Agostini / Invision / AP)

Paramount told Wall Street it would find more than $6 billion in cost cuts or “synergies” within three years — a number that has weighed heavily on entertainment industry workers, particularly in Los Angeles.

Hollywood already is reeling from previous mergers in addition to a sharp pullback in film and television production locally as filmmakers chase tax credits offered overseas and in other states, including New York and New Jersey.

Some entertainment executives, including Netflix Co-Chief Executive Ted Sarandos, have speculated that Paramount will need to find more than $10 billion in cost cuts to make the math work. More recently, Sarandos went higher, telling Bloomberg News that Paramount may need $16 billion in cuts.

Cognizant of widespread fears about additional layoffs, Paramount Chief Operating Officer Andrew Gordon took steps this week to try to tamp down such concerns.

Gordon is a former Goldman Sachs banker and a former executive with RedBird Capital Partners, an investor in Paramount and the proposed Warner Bros. deal. He joined Paramount last August as part of the Ellison takeover.

During a conference call Monday with analysts, Gordon said Paramount would look beyond the workforce for cuts because the company wants to maintain its film and TV production levels.

Paramount plans to look for cost savings by consolidating the “technology stacks and cloud providers” for its streaming services, including Paramount+ and HBO Max, Gordon said. The company also would search for reductions in corporate overhead, marketing expenses, procurement, business services and “optimizing the combined real estate footprint.”

It’s unclear whether Paramount would sell the historic Melrose Avenue lot or simply centralize the sprawling operations onto the Warner Bros. and Paramount lots in Burbank and Hollywood.

Workers are scattered throughout the region.

HBO, owned by Warner Bros. Discovery, maintains its West Coast headquarters in Culver City; CBS television stations operate from CBS’ former lot off Radford Avenue in Studio City; and CBS Entertainment and Paramount cable channels executive teams are located in a high-rise off Gower Street and Sunset Boulevard, blocks from the Paramount movie studio lot.

“The combination of PSKY and WBD could create a materially stronger business than either individual entity,” Standard & Poor’s said in its note to investors. “However, this transaction presents unique challenges because it would involve the combination of three companies, with the smallest, Skydance, being the controlling entity.”

David Ellison’s production firm, Skydance Media, was the entity that bought Paramount, creating Paramount Skydance.

Ellison has not announced what the combined company will be called.

Paramount shares closed down more than 6% Tuesday to $12.45.

Warner Bros. Discovery fell 1% to $28.20. Netflix added less than 1% to close at $97.70.

The morning after Netflix clinched its deal to buy Warner Bros., Paramount Skydance Chairman David Ellison assembled a war room of trusted advisors, including his billionaire father, Larry Ellison.

Furious at Warner Bros. Discovery Chief David Zaslav for ending the auction, the Ellisons and their team began plotting their comeback on that crisp December day.

To rattle Warner Bros. Discovery and its investors, they launched a three-front campaign: a lawsuit, a hostile takeover bid and direct lobbying of the Trump administration and Republicans in Congress.

“There was a master battle plan — and it was extremely disciplined,” said one auction insider who was not authorized to comment publicly.

Netflix stunned the industry late Thursday by pulling out of the bidding, clearing the way for Paramount to claim the company that owns HBO, HBO Max, CNN, TBS, Food Network and the Warner Bros. film and television studios in Burbank. The deal was valued at more than $111 billion.

The streaming giant’s reversal came just hours after co-Chief Executive Ted Sarandos met with Atty Gen. Pam Bondi and a deputy at the White House. It was a cordial session, but the Trump officials told Sarandos that his deal was facing significant hurdles in Washington, according to a person close to the administration who was not authorized to comment publicly.

Even before that meeting, the tide had turned for Paramount in a swell of power, politics and brinkmanship.

“Netflix played their cards well; however, Paramount played their cards perfectly,” said Jonathan Miller, chief executive of Integrated Media Co. “They did exactly what they had to do and when they had to do it — which was at the very last moment.”

Key to victory was Larry Ellison, his $200-billion fortune and his connections to President Trump and congressional Republicans.

Paramount also hired Trump’s former antitrust chief, attorney Makan Delrahim, to quarterback the firm’s legal and regulatory action.

Republicans during a Senate hearing this month piled onto Sarandos with complaints about potential monopolistic practices and “woke” programming.

David Ellison skipped that hearing. This week, however, he attended Trump’s State of the Union address in the Capitol chambers, a guest of Sen. Lindsey Graham (R-S.C.). The two men posed, grinning and giving a thumbs-up, for a photo that was posted to Graham’s X account.

David Ellison, the chairman and chief executive of Paramount Skydance Corp., walks through Statuary Hall to the State of the Union address at the U.S. Capitol on Feb. 24, 2026.

(Anna Moneymaker / Getty Images)

On Friday, Netflix said it had received a $2.8-billion payment — a termination fee Paramount agreed to pay to send Netflix on its way.

Long before David Ellison and his family acquired Paramount and CBS last summer, the 43-year-old tech scion and aircraft pilot already had his sights set on Warner Bros. Discovery.

Paramount’s assets, including MTV, Nickelodeon and the Melrose Avenue movie studio, have been fading. Ellison recognized he needed the more robust company — Warner Bros. Discovery — to achieve his ambitions.

“From the very beginning, our pursuit of Warner Bros. Discovery has been guided by a clear purpose: to honor the legacy of two iconic companies while accelerating our vision of building a next-generation media and entertainment company,” David Ellison said in a Friday statement. “We couldn’t be more excited for what’s ahead.”

Warner’s chief, Zaslav, who had initially opposed the Paramount bid, added: “We look forward to working with Paramount to complete this historic transaction.”

Netflix, in a separate statement, said it was unwilling to go beyond its $82.7-billion proposal that Warner board members accepted Dec. 4.

“We believe we would have been strong stewards of Warner Bros.’ iconic brands, and that our deal would have strengthened the entertainment industry and preserved and created more production jobs,” Sarandos and co-Chief Executive Greg Peters said in a statement.

“But this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price,” the Netflix chiefs said.

Netflix may have miscalculated the Ellison family’s determination when it agreed Feb. 16 to allow Paramount back into the bidding.

The Los Gatos, Calif.-based company already had prevailed in the auction, and had an agreement in hand. Its next step was a shareholder vote.

“They didn’t need to let Paramount back in, but there was a lot of pressure on them to make sure the process wouldn’t be challenged,” Miller said.

In addition, Netflix’s stock had also been pummeled — the company had lost a quarter of its value — since investors learned the company was making a Warner run.

Upon news that Netflix had withdrawn, its shares soared Friday nearly 14% to $96.24.

Netflix Chief Executive Ted Sarandos arrives at the White House on Feb. 26, 2026.

(Andrew Leyden / Getty Images)

Invited back into the auction room, Paramount unveiled a much stronger proposal than the one it submitted in December.

The elder Ellison had pledged to personally guarantee the deal, including $45.7 billion in equity required to close the transaction. And if bankers became worried that Paramount was too leveraged, the tech mogul agreed to put in more money in order to secure the bank financing.

That promise assuaged Warner Bros. Discovery board members who had fretted for weeks that they weren’t sure Ellison would sign on the dotted line, according to two people close to the auction who were not authorized to comment.

Paramount’s pressure campaign had been relentless, first winning over theater owners, who expressed alarm over Netflix’s business model that encourages consumers to watch movies in their homes.

During the last two weeks, Sarandos got dragged into two ugly controversies.

First, famed filmmaker James Cameron endorsed Paramount, saying a Netflix takeover would lead to massive job losses in the entertainment industry, which is already reeling from a production slowdown in Southern California that has disrupted the lives of thousands of film industry workers.

Then, a week ago, Trump took aim at Netflix board member Susan Rice, a former high-level Obama and Biden administration official. In a social media post, Trump called Rice a “no talent … political hack,” and said that Netflix must fire her or “pay the consequences.”

The threat underscored the dicey environment for Netflix.

Additionally, Paramount had sowed doubts about Netflix among lawmakers, regulators, Warner investors and ultimately the Warner board.

Paramount assured Warner board members that it had a clear path to win regulatory approval so the deal would quickly be finalized. In a show of confidence, Delrahim filed to win the Justice Department’s blessing in December — even though Paramount didn’t have a deal.

This month, a deadline for the Justice Department to raise issues with Paramount’s proposed Warner takeover passed without comment from the Trump regulators.

“Analysts believe the deal is likely to close,” TD Cowen analysts said in a Friday report. “While Paramount-WBD does present material antitrust risks (higher pay TV prices, lower pay for TV/movie workers), analysts also see a key pro-competitive effect: improved competition in streaming, with Paramount+ and HBO Max representing a materially stronger counterweight to #1 Netflix.”

Throughout the battle, David Ellison relied on support from his father, attorney Delrahim, and three key board members: Oracle Executive Vice Chair Safra A. Catz; RedBird Capital Partners founder Gerry Cardinale; and Justin Hamill, managing director of tech investment firm Silver Lake.

In the final days, David Ellison led an effort to flip Warner board members who had firmly supported Netflix. With Paramount’s improved offer, several began leaning toward the Paramount deal.

On Tuesday, Warner announced that Paramount’s deal was promising.

On Thursday, Warner’s board determined Paramount’s deal had topped Netflix. That’s when Netflix surrendered.

“Paramount had a fulsome, 360-degree approach,” Miller said. “They approached it financially. … They understood the regulatory environment here and abroad in the EU. And they had a game plan for every aspect.”

On Friday, Paramount shares rose 21% to $13.51.

It was a reversal of fortunes for David Ellison, who appeared on CNBC just three days after that war room meeting in December.

“We put the company in play,” David Ellison told the CNBC anchor that day. “We’re really here to finish what we started.”

Times staff writer Ana Cabellos and Business Editor Richard Verrier contributed to this report.

Feb. 27 (UPI) — Netflix has decided to let go of its attempt to buy Warner Bros. Discovery after Paramount Skydance raised its purchase offer.

On Wednesday, Paramount raised its cash offer from $30 per share to $31 per share. On Thursday, WBD decided the offer was superior to Netflix’s offer, prompting the drop out.

“This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price,” said co-CEOs Ted Sarandos and Greg Peters in a statement.

Netflix’s bid was for $27.75 per share for the studios and streaming, while Paramount’s bid is for the entirety of the company.

“We’re super-disciplined buyers,” The New York Times reported Sarandos said earlier this month. “I’m willing to walk away and let someone else overpay for things.”

Netflix and Paramount have been duking it out over WBD since October. They had a bidding war, and WBD accepted Netflix’s offer on Dec. 5. Soon after, Paramount launched a hostile bid to buy WBD, but the board wasn’t interested. Then, Paramount announced that billionaire Oracle creator Larry Ellison would back the deal with $40 billion in equity. On Jan. 20, Netflix changed its offer to all cash, then on Feb. 10, Paramount did the same and added some extras.

Netflix granted WBD a seven-day pause on the deal to evaluate Paramount’s offer, and during that time, Paramount raised the bid even more to $31 per share.

If the deal doesn’t pass federal regulatory scrutiny, Netflix could come back and try again.

“We are pleased WBD’s Board has unanimously affirmed the superior value of our offer, which delivers to WBD shareholders superior value, certainty and speed to closing,” David Ellison, Paramount CEO, said in a statement Thursday.

Warner Bros. CEO David Zaslav expressed gratitude to Netflix.

“Netflix is a great company, and throughout this process Ted [Sarandos], Greg [Peters], [CFO Spencer Neumann] and everyone there have been extraordinary partners to us. We wish them well in the future,” CNBC reported Zaslav said in a statement. “Once our Board votes to adopt the Paramount merger agreement, it will create tremendous value for our shareholders. We are excited about the potential of a combined Paramount Skydance and Warner Bros. Discovery, and can’t wait to get started working together telling the stories that move the world.”

Netflix stock rose 10% in extended trading Thursday, while Paramount stock jumped 5%, CNBC reported. Shares of Warner Bros. Discovery dropped 2%.

Last December, Warner Bros agreed to a takeover offer from Netflix for some of its assets. But Paramount, which is backed by tech billionaire Larry Ellison and led by his son David, made a rival offer as it looks to transform itself into a Hollywood heavyweight. But it had been rebuffed by Warner Bros.

WASHINGTON — Warner Bros. Discovery is switching gears, announcing Thursday that Paramount Skydance’s revised bid tops the one on the table from Netflix.

The move is the latest twist in Hollywood’s biggest auction in years — and five months after Paramount Chairman David Ellison began his dogged pursuit of the larger media company. Netflix now has four business days to regroup and potentially submit a higher offer.

Warner Bros. Discovery said its board, in consultation with its bankers and lawyers, determined Paramount’s most recent offer constitutes a “superior proposal,” compared to the Netflix deal.

Paramount on late Monday bid to buy all of Warner Bros. Discovery for $31 a share in cash. Paramount had previously offered $30 a share.

Netflix has offered $27.75 a share — but the streaming giant only wants Warner’s HBO, HBO Max and the Warner Bros. film and television studios in Burbank. Concerns have been growing that Netflix would face push-back from regulators as it seeks to swallow one of Hollywood’s historic film studios behind “Superman,” “Casablanca” and “The Matrix.”

Paramount’s offer includes acquiring Warner’s cable television channels like CNN and HGTV.

“We are pleased WBD’s Board has unanimously affirmed the superior value of our offer, which delivers to WBD shareholders superior value, certainty and speed to closing,” said David Ellison, the chairman and chief executive of Paramount.

The new wrinkle comes as Netflix Co-CEO Ted Sarandos met with White House staffers on Thursday at a pivotal moment for the streaming giant, which has been navigating the high-stakes bidding war to acquire Warner Bros. Discovery.

Sarandos met with White House staff members and Justice Department officials, according to two people familiar with the meeting. The visit was arranged more than two weeks ago and President Trump was not scheduled to attend.

The White House and Netflix declined to comment on the substance of the meeting, but it comes as the media giant has come under pressure by the president to fire board member Susan Rice, a former Biden administration adviser that Trump recently called a “political hack.”

Trump warned that if Netflix did not fire Rice, the company would “pay the consequences.”

The president’s demands to fire Rice marked a shift in the president’s involvement with Netflix’s business as it seek to acquire Warner Bros — a bid that is being countered by Paramount.

In December, Netflix won the bidding for the storied studio and HBO, prompting Paramount executives to launch a multi-pronged strategy to scuttle the Netflix deal.

The Department of Justice has since opened an investigation to determine whether to try to block Netflix’s proposed $82.7-billion deal to take over Warner Bros. Discovery. Netflix has more than 300 million subscribers worldwide, and the addition of Warner’s HBO Max would make the streaming giant even more dominant.

Sarandos’ trek to the White House comes as the auction has taken on political dimensions. Paramount has refused to abandon its campaign to buy Warner, which owns HBO and such popular franchises as Harry Potter, Superman and “Game of Thrones.”

Paramount — which is controlled by the family of billionaire Larry Ellison, a Trump friend — has been angling to thwart Netflix.

During a Senate hearing this month, some Republican lawmakers blasted Sarandos, raising questions about potential antitrust concerns and some of Netflix’s programming. Paramount Chief Executive David Ellison declined an invitation to participate in the Feb. 3 hearing.

This week, he was at the Capitol as a guest of Sen. Lindsey Graham (R-SC) for Trump’s State of the Union address. The two men were pictured giving a thumbs-up in a photo circulating on social media.

Trump has said he would stay out of the Netflix-versus-Paramount battle, but over the weekend he demanded, in a social media post, that Netflix “IMMEDIATELY” fire Rice from its board.

It was not known if the topic of Rice came up Thursday.

Sarandos has sought to downplay the controversy, saying during a BBC interview: “This is a business deal, it’s not a political deal.”
Paramount has enlisted a former Trump administration official, the lawyer Makan Delrahim, who served as Trump’s antitrust chief during the president’s first term.

Paramount Skydance is betting its future on its streaming business, as gains at the media and entertainment company’s Paramount+ platform helped boost earnings for the fiscal fourth quarter of 2025.

On Wednesday, Paramount reported $8.1 billion in revenue for the three-month period that ended Dec. 31, up 2% compared to the previous year’s quarter. That was due to growth in its streaming business, which saw a 10% increase in quarterly revenue to $2.2 billion, as well as gains at Paramount’s filmed entertainment segment, which reported revenue of $1.3 billion,an increase of 16% compared to the previous year.

The company’s TV media business, however, had a tougher quarter.

That segment reported revenue of $4.7 billion, down 5% compared to last year, as traditional broadcast networks continue tolose subscribers. Paramount also cited a 10% decrease in advertising, partially due to a drop in political spending and not having the Big 10 championship as it did in 2024.

Paramount reported an operating loss of $339 million, which included $546 million in restructuring and transaction-related costsattributed to its merger with Skydance last year. Diluted losses per share totaled 52 cents, compared to a loss of 33 cents during the prior year.

Chief Executive David Ellison praised the company’s progress under his tenure, noting that investments in the film studio, original series, UFC and tech upgrades to Paramount+’s streaming platform and advertising would build momentum in the coming years.

“It’s been six months, but we really do feel good about the work the team has done to date,” he said during an earnings call with analysts Wednesday afternoon. “You can expect that to accelerate into the future quickly.”

The company said it expects total revenue of $30 billion for 2026, which would mark a 4% increase compared to 2025. Paramount signaled the primary driver of that growth will be its streaming business, though the company also anticipates a boost from its studio segment.

Company executives declined to answer questions on the call about Paramount’s bid to acquire rival Warner Bros. Discovery.

The only mention of the ongoing fight was in Paramount‘s letter to shareholders, which noted that the company was “confident” in its standalone strategy and growth trajectory, but that adding Warner would be an “accelerant to achieving these goals more quickly” and in a way that would be “economically compelling” for Paramount’s shareholders.

Paramount submitted a higher bid Monday offering $31 a share in cash to Warner Bros. Discovery investors. Previously, the offer was $30 a share.

The company also agreed to pay $7 billion to Warner should the deal fail to clear various regulatory hurdles. That was a $2 billion increase. (The previous commitment was $5 billion.)

Paramount reaffirmed that it would cover the $2.8 billion termination fee that Warner would owe Netflix if Warner abandoned its deal with the streamer.

Paramount also said it would pay a so-called ticking fee sooner. Now, the company said it would pay an additional $0.25 per quarter to shareholders after Sept. 30 until a Paramount-Warner transaction closed. It also agreed to cover Warner’s potential $1.5 billion in financing costs associated with a planned debt exchange offer.

Additionally, Paramountsaid it “agreed to an obligation to contribute additional equity funding to the extent needed to support the solvency certificate required by PSKY’s lending banks.” That provision was offered because Warner board members have expressed concerns that Paramount may not be able to round up sufficient financing to close such a gargantuan deal.

But the company’s earnings — and the declines its facing in its own TV business — raised concerns about the potential Warner acquisition, John Conca, analyst at Third Bridge, wrote in an email.

“It is becoming questionable why leadership is aggressively pursuing [Warner], a deal that would effectively double their exposure to dying linear networks while also creating even more massive integration headaches,” he said.

If Warner’s board changes course and deems Paramount’s latest offer superior, Netflix will be able to revise its bid.

Warner Bros Discovery (WBD) says it is reviewing a new takeover offer from Paramount Skydance, but it continues to recommend a competing proposal from Netflix to its shareholders in the meantime.

Warner disclosed on Tuesday that it had received a revised offer from Paramount after a seven-day window to renew talks with the Skydance-owned company elapsed on Monday. Paramount – which is run by David Ellison, son of United States President Donald Trump ally and Oracle cofounder Larry Ellison – confirmed it had submitted the proposal, but neither company provided details about it. The company was widely expected to have raised its offer.

A WBD buyout would reshape Hollywood and the wider media landscape, bringing HBO Max, cult-favourite titles like Harry Potter and, depending on who wins the Netflix vs Paramount tug-of-war, potentially even CNN under a new roof.

Paramount wants to acquire Warner Bros in its entirety, including networks like CNN and Discovery, and went straight to shareholders with an all-cash, $77.9bn hostile offer just days after the Netflix deal was announced in December. Accounting for debt, that bid offered Warner stakeholders $30 per share, amounting to an enterprise value of about $108bn.

Paramount maintained on Tuesday that its tender offer remains on the table while Warner evaluates its latest proposal.

Netflix wants to buy only Warner’s studio and streaming business for $72bn in cash, or about $83bn including debt. Warner’s board has repeatedly backed this deal and on Tuesday maintained that its agreement with Netflix still stands.

Warner shareholders are to vote on the Netflix proposal on March 20.

If Warner’s board changes course and considers Paramount’s latest offer superior, Netflix would have a chance to match or revise its proposal, potentially setting the stage for a new bidding war. It could also choose to walk away.

Further consolidation

Paramount, Warner and Netflix have spent the last couple of months in a heated back and forth over who has the stronger deal. But along the way, lawmakers and entertainment trade groups have sounded the alarm, warning that either buyout of all or parts of Warner’s business would only further consolidate power in an industry already run by just a few major players. Critics said that could result in job losses, less diversity in filmmaking and potentially more headaches for consumers who are facing rising costs of streaming subscriptions as is.

Combined, that raises tremendous antitrust concerns – and a Warner sale could come down to who gets the regulatory greenlight. The US Department of Justice has already initiated reviews, and other countries are expected to do so too.

Both Paramount and Netflix have argued that their proposals are good for consumers and the wider industry. And the companies have taken aim at each other publicly with regulatory arguments.

Paramount has pointed to Netflix’s much larger market value, and it has argued that if the streaming giant acquires Warner, it would only give it more dominance in the subscription video-on-demand space. But Netflix is trying to persuade regulators that it’s up against broader video libraries, particularly Google’s YouTube, America’s most-watched TV distributor.

Paramount’s bid will create a studio bigger than market leader Disney and fuse two major TV operators, which some Democratic senators said would control “almost everything Americans watch on TV”.

It will also hand control of CNN to the conservative-leaning Ellisons, soon after they acquired CBS News and installed as its editor-in-chief Bari Weiss, a right-leaning opinion editor who had no prior TV experience. The network settled for $16m a lawsuit that Trump had filed, accusing CBS’s 60 Minutes programme of editing an interview with Kamala Harris to his 2024 presidential election rival’s advantage. It also appointed Kenneth Weinstein, a former Trump administration official, as ombudsman to investigate allegations of bias.

In December, Ellison visited the White House, media reports said, and told Trump that Paramount would execute “sweeping changes” if it acquired CNN’s parent company.

More recently, Trump, in a Truth Social post on Saturday, demanded that Netflix fire former US National Security Adviser Susan Rice from its board. Rice, a Black woman, had served under former Presidents Barack Obama and Joe Biden, both Democrats.

“This is a business deal. It’s not a political deal,” Netflix CEO Ted Sarandos told BBC Radio 4’s flagship Today programme on Monday. “This deal is run by the Department of Justice in the US and regulators throughout Europe and around the world.”

Trump previously made unprecedented suggestions about his involvement in seeing a deal through before walking back those statements and maintaining that regulatory approval will be up to the Justice Department.

Warner Bros. Discovery said Tuesday that it was “reviewing” a revised offer from Paramount Skydance — the latest twist in the high-profile auction to claim one of Hollywood’s corporate jewels.

The company did not provide any details of Paramount’s bid. Paramount separately confirmed that it submitted a revised offer.

In a short statement, Warner acknowledged that Paramount had submitted a modified proposal to buy all of the company’s outstanding shares and that board members were evaluating the offer “in consultation with our financial and legal advisors.”

“We will update our shareholders following the Board’s review,” Warner said.

The Larry Ellison-backed Paramount had been facing a late Monday night deadline to boost its bid to claim the company that owns CNN, HBO, TBS and the storied Warner Bros. movie and film studios. Last week, the auction’s winning bidder — Netflix — agreed to allow Warner Bros. Discovery to reopen talks with Paramount for seven days to determine whether Paramount would bring more money to the table.

Warner instructed Paramount to present its “best and final” offer.

Netflix has matching rights should Warner Bros. Discovery reverse course and accept the Paramount bid.

The move comes nearly three months after Warner’s board unanimously agreed to sell HBO and studio assets, including its deep library that includes Superman, Harry Potter, Scooby-Doo, “Game of Thrones,” and “The Big Bang Theory,” to Netflix for $27.75 a share.

Netflix’s deal, valued at $82.7 billion, does not include Warner’s basic cable channels, including CNN, TBS and HGTV.

Those channels are slated to be spun off to a new company later this year.

But Paramount, managed by scion David Ellison, has repeatedly cried foul, saying its cash bid for all of Warner Bros. Discovery, including the Warner cable channels, would be more lucrative for shareholders. Paramount, which enjoys friendly relations with President Trump, has also boasted that it has a more certain path to win U.S. regulatory approval compared to Netflix.

But Warner Bros.’ board has stuck with Netflix’s bid, saying the streaming giant’s financing was more secure.

“The Netflix merger agreement remains in effect, and the Board continues to recommend in favor of the Netflix transaction,” Warner said in its Tuesday statement.

Warner Bros. Discovery told Paramount last week that it expected the billionaire Ellison to put more money into the deal.

Paramount has previously said that the tech billionaire would guarantee more than $41 billion in equity financing that was needed to pull of the more than $108-billion take-over.

Under Paramount’s previous offer, the Ellison family was planning to contribute about $12 billion. Another $24 billion was expected to come from the royal families from Saudi Arabia, Qatar and Abu Dhabi.

In recent weeks, Paramount agreed to cover a $2.8 billion break-up fee that Warner would owe Netflix should Warner walk away from the Netflix deal. Paramount also suggested that it would increase its offer to at least $31 a share.

The move comes amid heightened political interest in the monumental deal that would reshape Hollywood.

The Department of Justice is investigating whether a Netflix takeover, or Paramount’s alternative bid, would harm competition.

Republican lawmakers have been critical of the Netflix deal, saying it would blunt competition.

President Trump has said he didn’t plan to get involved in the investigation, but over the weekend he threatened Netflix, writing on social media that Netflix must fire Susan Rice, a former high-level Obama and Biden administration official, from its board or “pay the consequences.”

Warner Bros. Discovery is consulting with investment bankers from Allen & Company, J.P. Morgan and Evercore and the law firms Wachtell Lipton and Debevoise & Plimpton.

As Paramount moved Monday to sweeten its bid for Warner Bros. Discovery, a high-stakes political battle is playing out behind the scenes.

Paramount’s latest offer enhanced its earlier $30-a-share bid, valued at $108 billion, said a person familiar with the process who was not authorized to comment publicly. Details of the revised proposal, first reported by Bloomberg, were not immediately available.

The firm is leveraging both the dynastic wealth of Larry Ellison’s empire and his ties to the Trump administration to dismantle Netflix’s rival $82.7-billion deal for Warner, which owns CNN, HBO and the premier Hollywood film and television studios, according to people close to the auction.

Over the weekend, President Trump turned up the heat, demanding that Netflix “IMMEDIATELY” fire Susan Rice — a former Obama and Biden administration official — who serves on Netflix’s 13-member board or “pay the consequences.”

Trump, in a Saturday night social media post, called the former ambassador “deranged … She’s got no talent or skills — Purely a political hack!”

Trump previously said he would not get involved in the pivotal Warner Bros. auction, instead leaving the matter to the Department of Justice, which is investigating whether a Netflix takeover, or Paramount’s alternative bid, would harm competition. Trump has been an outspoken critic of CNN and many of its on-air hosts.

Netflix won the bidding for the storied studio and HBO in December, prompting the spurned Paramount executives to launch a multipronged strategy to scuttle the Netflix deal.

Netflix co-Chief Executive Ted Sarandos sought to downplay the latest controversy, saying during a BBC interview Monday: “This is a business deal, it’s not a political deal.”

But Paramount, which declined to comment for this article, has not been shy about playing its political cards.

Warner Bros. Studio in Burbank.

(Myung J. Chun/Los Angeles Times)

The company, overseen by Larry Ellison’s son, David, is trying to convince Justice Department regulators and Warner Bros. shareholders that the Netflix deal is too dicey and that they should instead side with Paramount, said sources who were not authorized to comment publicly.

Paramount has attempted numerous maneuvers to gain the upper hand.

“This deal was never going to be decided on the merits of the offer or rigid antitrust considerations,” said Gabriel Kahn, a professor at the USC Annenberg School for Communication and Journalism. “This was a classic Trump administration deal where proximity to the president counts a lot more than financial terms.”

Trump’s Saturday night outburst came after Rice, during a podcast interview last week, said that “it is not going to end well” for corporations, media outlets and law firms that “bent the knee” to Trump should Democrats regain control in Washington.

The comments of Rice, a Netflix director for eight years, came as Paramount-owned CBS was involved in a headline-grabbing dust-up with late-night talk-show host, Stephen Colbert, over Trump’s Federal Communications Commission chair‘s threat to modify a rule requiring that broadcasters to give political candidates equal time. Colbert has accused his company of kowtowing to Trump, which CBS has denied.

Netflix’s Sarandos and Paramount’s David Ellison have made separate treks to the White House.

In October, Paramount hired a former Trump administration official, Makan Delrahim, who oversaw the Justice Department’s antitrust division during Trump’s first term, to quarterback Paramount’s campaign to win over regulators and politicians.

A formidable ally — Sen. Ted Cruz (R-Texas) — recently visited Delrahim on Paramount’s Melrose Avenue lot in Los Angeles. While there, Cruz said he was a fan of the CBS show “NCIS,” which prompted Paramount executives to put together an impromptu tour of the “NCIS Origins” soundstages, according to a person familiar with the visit.

In December, Delrahim made a tactical move to apply for Justice Department approval of Paramount’s deal — despite the absence of a signed agreement with the Warner Bros. board and the consent of its shareholders. The gambit was meant to speed the agency’s approval should the Netflix deal crumble. Warner stockholders are expected to vote March 20.

Last week, Paramount announced that a major deadline had passed without pushback from the Justice Department. “There is no statutory impediment in the U.S. to closing Paramount’s proposed acquisition of WBD,” Paramount said in a regulatory filing.

Paramount faces a separate deadline late Monday to improve the finances of its proposed takeover to shake the support of Warner Bros. Discovery’s board members for the Netflix deal.

Paramount wants to buy all of Warner Bros. Discovery, including CNN.

Netflix, in contrast, does not want the bulk of cable TV channels beyond HBO, and has offered $27.75 a share. It has the right to match any improved Paramount proposal.

Warner is planning to spin off the bulk of its channel portfolio, including HGTV, TBS and Cartoon Network, in a separate company. Its shareholders will receive stock in that entity, slated to be called Discovery Global.

Concerns over Netflix’s deal have been mounting.

Department of Justice regulators have sent inquiries to the three companies, according to one senior executive who was not authorized to speak publicly. The department is said to be looking at Netflix’s historic business strategy of steering most of its film releases to its streaming platform, often bypassing movie theaters. Sarandos has promised to maintain a 45-day theatrical window for Warner Bros. films.

Bloomberg has reported that regulators also are trying to determine whether Netflix has exerted leverage over creators in negotiations when acquiring programming to build its catalog.

This month, Republican lawmakers blasted Sarandos during a Senate Judiciary Subcommittee on Antitrust, Competition Policy, and Consumer Rights hearing to explore antitrust implications of the Warner Bros. sale. Sen. Mike Lee (R-Utah) sent Netflix a series of pointed follow-up questions, including: “If allowed to proceed, what effect will the merger have on future competition?”

Ted Sarandos, left, and David Zaslav at the 2026 Golden Globes.

(Allen J. Schaben / Los Angeles Times)

The hearing also veered into culture wars, with Sen. Josh Hawley (R-Mo.) suggesting Netflix was promoting a “transgender ideology” to children, which Sarandos denied.

Another Missouri Republican, Sen. Eric Schmitt, accused Netflix of making some of “the wokest content in the history of the world.”

“Netflix has no political agenda of any kind,” Sarandos told the lawmakers.

David Ellison also was invited to appear at the Feb. 3 hearing, but he declined — which raised the eyebrows of some members of the panel.

Skydance Media founder and Chief Executive David Ellison, who leads Paramount, is shown in 2023 in New York.

(Evan Agostini / Invision / Associated Press)

Sen. Cory Booker (D-N.J.) challenged Ellison for failing to answer lawmakers’ questions under oath, including about his dealings with the president.

Ellison instead responded with a statement but Booker and other lawmakers wrote back, saying Ellison’s statement “failed to address” the issues raised by Booker.

“The pattern of evasion, combined with Paramount’s apparent confidence that a politically sensitive transaction will clear without difficulty warrants serious scrutiny,” Booker, Senate Minority Leader Chuck Schumer and others wrote in the Feb. 19 letter.

The Democrats instructed Ellison “to preserve records related to the proposed Paramount-Warner Bros. Discovery transaction.”

The move came days after Gail Slater, the Justice Department’s antitrust chief, was bounced from her job, reportedly after becoming a thorn in the side of some business interests. Slater’s former top deputy, who also left the Justice Department, publicly warned that antitrust decisions are being influenced by corporate lobbyists — not in the interest of ordinary Americans.

“We see this happen again and again,” USC’s Kahn said.

“Let’s not forget that Larry Ellison’s Oracle was part of the consortium that purchased the U.S. operations of TikTok. Repeated complaints from the FCC about content at CBS have been heeded by the Ellison regime,” Kahn said, adding: “This is the reality of trying to do any business in the Trump administration: It’s about payoffs and proximity.”

It was an extraordinary media moment: CBS late-night host Stephen Colbert on Tuesday publicly blasted his own employer over its handling of his interview with Democratic U.S. Senate candidate James Talarico of Texas.

Colbert contended that his own network prevented him from airing the interview in an effort to appease the Trump administration, which CBS has denied. He chose instead to put the sit-down with the Texas state legislator on YouTube, which is not regulated by the FCC.

The standoff not only highlighted the simmering tensions inside CBS with the late-night host, it also marked the latest flash point in the ongoing clash between the Trump administration and leading media and entertainment figures — including other late-night hosts Seth Meyers and Jimmy Kimmel — who have been openly critical of the president’s policies.

Federal Communications Commission Chairman Brendan Carr has been leading the charge, aggressively attempting to wield the long dormant equal time rules forcing broadcast TV stations to offer equal time to opposing candidates as a means of influencing the legacy media companies who President Trump believes treats him unfairly.

Carr contends the effort is a long overdue corrective to combat what he and Trump believe is liberal bias in broadcast network news coverage. He has even threatened to pull TV station licenses if programmers don’t get in line.

Last fall, he warned ABC that it could lose its TV station licenses after Kimmel made remarks on his program about slain right-wing activist Charlie Kirk that upset conservatives. Two major TV station groups pulled the program and the network suspended Kimmel‘s program for a week.

But experts say the efforts — along with the recent arrest of former CNN journalist Don Lemon over civil rights charges — pose a threat to constitutionally protected freedom of speech and would likely face court challenges.

“We don’t want the government trying to make decisions as to what counts as political speech and what doesn’t and what counts as fairness and what doesn’t,” media consultant Michael Harrison told The Times last month.

Some experts are also skeptical that Carr will ever make good on those threats through greater enforcement of the equal time provision.

Andrew Jay Schwartzman, a public interest communications attorney, said Carr is using his bully pulpit at the FCC to intimidate “a timorous broadcasting industry.”

“The Late Show with Stephen Colbert “ on July 23, 2024.

(Scott Kowalchyk / CBS)

“It’s just all bluster,” said Schwartzman. “Broadcasters are more interested in short-term regulatory relief from the FCC, and in the case of [CBS parent] Paramount, getting approval of a possible Warner Bros. Discovery deal.”

CBS cited financial losses as the reason for the cancellation of Colbert’s show, which ends in May, just two months before CBS parent Paramount Global closed its merger deal with Skydance Media, which required regulatory approval from the Trump administration. Paramount also has been attempting a hostile bid for Warner Bros. Discovery.

Paramount also drew scrutiny over its controversial decision to pay $16 million to settle Trump’s legal salvo against “60 Minutes” over the editing of an interview with his 2024 opponent, then-Vice President Kamala Harris. Most legal analysts viewed the case as frivolous.

Jeffrey McCall, a communications professor at DePauw University, said he understands why CBS did not want to invite FCC scrutiny.

“CBS could have other matters in front of the FCC,” McCall said. “So, I don’t blame CBS for trying to tell Colbert like, ‘hey, back off.’”

But McCall added that he sees no reason for the FCC to end or curtail the exemption daytime and late-night television talk shows have from laws requiring stations to offer equal broadcast opportunities to political candidates.

“They have a lot to do otherwise and I’m just not sure this is worth their trouble,” he said.

The equal time rules were devised at a time when consumers had a limited number of media options. Broadcast TV is no longer dominant in the era of streaming as evidenced by how the Talarico interview drew 8 million views on YouTube — more than three times the typical TV audience for Colbert’s “Late Show.”

Schwartzman noted that equal time provision cases are typically resolved quickly, as the rule only applies during an election campaign.

If Talarico’s interview had aired on TV and his opponents requested time, CBS would have to accommodate them ahead of the Texas primary election on March 3. (The network would not have been required to give time to Republican candidates).

CBS could have fulfilled the request by providing time on its affiliated stations in Texas. The opposing candidates did not have to appear on Colbert’s show.

“The remedy is you have to give them airtime,” Schwartzman said. “That’s all.”

CBS wanted Colbert to steer clear of Talarico because the FCC previously announced it is “investigating” ABC over the candidate’s appearance on “The View,” according to a network executive not authorized to discuss the matter publicly. Talarico was on the daytime talk show Feb. 2, which has led to the FCC launching an “enforcement action” on the matter.

Representatives from CBS and ABC declined comment.

Appearing Wednesday on Fox News Channel’s “The Ingraham Angle,” Carr brushed off accusations by Democrats that he was using the rule to silence their candidates.

“What we’re doing now is simply applying the law on the books,” Carr said.

When host Laura Ingraham noted that if CBS had aired the Talarico interview, it would have meant free airtime for Tarico’s primary opponent and high-profile Trump critic Rep. Jasmine Crockett (D-Texas), Carr replied, “Ironically, yes.”

But Schwartzman noted that if the FCC punished a network for ignoring the rule, the move would likely be challenged in court and take years to resolve. Even if the policy were violated, that would not be enough to get a station license pulled.

“A single violation or even a couple of violations of FCC policy are meaningless,” Schwartzman said. “You have to demonstrate a pattern of violations.”

Carr has also publicly supported Nexstar Media Group’s proposed $6.2-billion merger with Tegna, which would require the government to lift the ownership cap that limits TV station owners to coverage of 39% of the U.S. with their outlets.

Not surprisingly, the merger has the support of Trump, who is pals with top Nexstar executive Sean Compton, who oversees its cable channel NewsNation.

“We need more competition against THE ENEMY, the Fake News National TV Networks,” Trump wrote Feb. 7 on Truth Social. “Letting Good Deals get done like Nexstar — Tegna will help knock out the Fake News because there will be more competition, and at a higher and more sophisticated level.”

How Nexstar could take on the broadcast networks is a mystery. Nexstar is highly dependent on its affiliations with ABC, CBS, NBC and Fox due to their contracts with the NFL, which provide the stations with their highest-rated programming. Those network affiliations also give Nexstar leverage in its negotiations to get carriage on cable and satellite providers.

After the fake video of Tom Cruise and Brad Pitt fighting went viral, a surge of AI-generated content from Seedance 2.0 flooded the internet.

Some fans were using the new AI video generator, backed by ByteDance, to refashion the finales for shows like “Game of Thrones” and “Stranger Things.” Others created battle scenes between iconic superheroes like Wolverine and Superman or between a Transformer and Godzilla.

As these Seedance videos amassed millions of views on social media, industry guilds like SAG-AFTRA and the Motion Picture Assn. have criticized the AI platform that was launched last week. Now, many major Hollywood studios are threatening to take legal action against ByteDance, the same Chinese parent that oversees TikTok.

Netflix, Warner Bros. Discovery, Paramount and Disney have all sent individual cease and desist letters, detailing the unauthorized reproduction of each of the studios’ copyrighted intellectual property.

Netflix and Warner Bros. Discovery were the latest studios to send cease and desists letter to ByteDance on Tuesday.

Netflix calls Seedance “a high-speed privacy engine” and says that they “will not stand by and watch ByteDance treat our valued IP as free, public domain clip art,” as stated in the letter. The streamer also cites the illegal use of sets derived from “Squid Game,” costumes from “Bridgerton” and character design from “KPop Demon Hunters.”

Warner Bros. Discovery looks to repurposed content, including characters from the “Harry Potter” and “Lord of the Rings” franchises, as well as superheroes like Batman, as “ blatant infringement” by ByteDance. The studio argues that it’s clear that their AI technology was trained on Warner Bros. copyrighted material “without authorization.”

“But the users are not the ones at the root cause of the infringement; they are merely building on the foundation of infringement already laid by ByteDance as Seedance comes pre-loaded with Warner Bros. Discovery’s copyrighted characters,” wrote the studios’ legal executive vice president Wayne Smith. “That was a deliberate design choice by ByteDance.”

Disney and Paramount were the first of the studios to call out ByteDance, sending their letters last Friday and Saturday. Disney accuses ByteDance of loading its Seedance service “with a pirated library of Disney’s copyrighted characters from Star Wars, Marvel, and other Disney franchises.”

“Over Disney’s well-publicized objections, ByteDance is hijacking Disney’s characters by reproducing, distributing, and creating derivative works featuring those characters. ByteDance’s virtual smash-and-grab of Disney’s IP is willful, pervasive, and totally unacceptable,” Disney’s attorney David Singer wrote, per Axios.

Paramount’s cease and desist letter was reviewed by The Times and makes similar assertions about ByteDance’s unapproved use of copyrighted material.

ByteDance has since pledged to implement more safeguards to protect copyrighted material in response to these letters.

“ByteDance respects intellectual property rights and we have heard the concerns regarding Seedance 2.0,” a company spokesperson said in a statement shared with CNBC. “We are taking steps to strengthen current safeguards as we work to prevent the unauthorized use of intellectual property and likeness by users.”

But with or without the safeguards, Dan Purcell, chief executive of Midnight Labs, an AI-powered company that specializes in IP protection for high-value entertainment, said these letters might be a bit of a delayed reaction from the studios.

“Once synthetic content is generated, it spreads instantly and at a massive scale. By the time lawyers engage, the damage is done,” said Purcell in a statement. “The only path forward is strict licensing, real-time enforcement, and consequences that actually hurt. Reactive letters won’t fix this. The industry needs to move at the speed of AI — not the speed of litigation.”

UCLA has canceled an upcoming lecture featuring CBS News editor-in-chief Bari Weiss.

Weiss was scheduled to give the annual Daniel Pearl Memorial lecture on Feb. 27, about “The Future of Journalism.” But according to the university, the program will not move forward as scheduled, after Weiss’ team withdrew from the event.

A source familiar with the UCLA program said the lecture was canceled due to security concerns from Weiss, despite the public university offering to obtain additional security for the event, the source said. The Daniel Pearl Memorial lecture series honors the late journalist and is considered the capstone of the university’s Burkle Center for International Relations. Previous speakers include journalists Jake Tapper, Anderson Cooper and Bob Woodward.

According to the source, several employees at both the Burkle Center and the International Institute expressed opposition to Weiss speaking on campus. The university was also expecting a large number of students to protest the event.

Neither Weiss nor CBS immediately responded to a request for comment.

Weiss founded the media company, The Free Press, which was purchased in October by Paramount, CBS’ parent company. Following the $150 million purchase, Weiss was installed as editor-in-chief of CBS News.

Two months after taking on the new role, Weiss made the widely panned decision to pull a “60 Minutes” episode that examined the alleged abuse of deportees sent from the U.S. to an El Salvador prison. The decision earned Weiss heavy criticism and accusations that the move was politically motivated.

The canceled UCLA lecture comes at a time of ongoing organizational upheaval at CBS, which this week made headlines amid an escalating battle with its own late-night talk host, Stephen Colbert, over the FCC’s effort to enact stricter enforcement of the equal-time rule.

The Federal Communications Commission‘s stronger enforcement of its “equal time” rules is already affecting late-night TV.

During Stephen Colbert’s Monday night monologue on “The Late Show With Stephen Colbert,” he carried on per usual, introducing the Late Show Band and his guest Jennifer Garner. He then posed the question, “You know who is not one of my guests tonight?”

The late-night host was meant to have Texas state representative James Talarico on the show. But he said on air that he was “told in no uncertain terms by our network’s lawyers, who called us directly, that we could not have him on the broadcast.”

He continued on to explain the FCC’s new guidance for equal time rules under its Chairman Brendan Carr. The rules require broadcasters who feature political candidates to provide the same time to their rivals, if requested. Typically, news content, daytime and late-night talk shows have been excluded from these regulations, as it’s been an informal tradition for presidential candidates to make their rounds on various late-night shows.

But the FCC under Carr, who has made no secret of his intention to carry out an agenda that is aligned with President Trump’s wishes, has questioned whether late-night and daytime talk shows deserve an exemption from the equal-time rules for broadcast stations using the public airwaves. Many legal and media experts have said a stricter application of the rule would be hard to enforce and could stifle free speech

“Let’s just call this what it is. Donald Trump’s administration wants to silence anyone who says anything bad about Trump on TV, because all Trump does is watch TV,” said Colbert Monday night.

Earlier this year, ABC’s “The View” featured Talarico, as well as his main rival and fellow Democrat Jasmine Crockett. Talarico is currently facing off with Crockett and Ahmad Hassan in the Democratic primary for one of Texas’ two seats in the U.S. Senate. The FCC is also reportedly investigating his appearance on “The View.”

Experts consider the equal time rule to be antiquated, designed for a time when consumers were limited to a handful of TV channels and a dozen radio stations if they lived in a big city. The emergence of cable, podcasts and streaming audio and video platforms — none of which are subject to FCC restrictions in terms of content — have greatly diminished traditional broadcast media’s dominance in the marketplace. Carr has previously suggested that if TV hosts want to include political candidates in their programming, they can do it — just not on broadcast TV.

Colbert said he was taking Carr’s “advice” and revealed that his entire interview with Talarico was instead uploaded on YouTube. During the interview, Talarico calls out the Republican Party for initially running against “cancel culture.”

“Now they are trying to control what we watch, what we say, what we read. And this is the most dangerous kind of cancel culture, the kind that comes from the top,” said Talarico. “They went after ‘The View’ because I went on there. They went after Jimmy Kimmel for telling a joke they didn’t like. They went after you for telling the truth about Paramount’s bribe to Donald Trump.”

“The Late Show with Stephen Colbert” is leaving the air come May, signaling the end of CBS’s longstanding relationship with the late-night talk show. Its cancellation was a “purely financial decision,” according to CBS. But it also came at a time when Paramount Global, which owns CBS, was seeking regulatory approval from the Trump administration to sell itself to Skydance Media. The merger was finalized in August.

L.A. Times staff writer Stephen Battaglio contributed to this report.

Warner Bros. Discovery is cracking open the door to allow spurned bidder, Paramount Skydance, to make its case — but Warner’s board still maintains its preference for Netflix’s competing proposal.

Warner’s move to reopen talks comes after weeks of pressure from Paramount, which submitted an enhanced offer to buy Warner last week. Paramount’s willingness to increase its offer late in the auction attracted the attention of some Warner investors.

On Tuesday, Warner Bros. Discovery responded with a letter to Paramount Chairman David Ellison and others on Paramount’s board, giving the group seven days to “clarify your proposal.”

“We seek your best and final proposal,” Warner board members wrote. Warner set a Feb. 23 deadline for Paramount to comply.

The closely watched sale of the century-old Warner Bros., known for “Batman,” “The Big Bang Theory,” “Casablanca,” and HBO, the home of “Game of Thrones” and “Succession,” is expected to reshape Hollywood.

The flurry of activity comes as Warner Bros. Discovery and Netflix are seeking to enter the home stretch of the auction. Warner separately issued its proxy and set a special March 20 meeting of its shareholders to decide the company’s fate.

Warner Bros. Discovery is recommending that its stockholders approve the $82.7-billion Netflix deal.

“We continue to believe the Netflix merger is in the best interests of WBD shareholders due to the tremendous value it provides, our clear path to achieve regulatory approval and the transaction’s protections for shareholders against downside risk,” Warner Chairman Samuel A. Di Piazza, Jr., said in a Tuesday statement.

Still, the maneuver essentially reopens the talks.

Warner Bros. is creating an opportunity for Paramount to sway Warner board members, which could perhaps prompt Netflix to raise its $27.75 a share offer for Warner’s Burbank-based studios, vast library of programming, HBO and streaming service HBO Max.

Netflix is not interested in buying Warner Bros. Discovery’s basic cable channels, including CNN, TBS, HGTV and Animal Planet, which are set to be spun off to a stand-alone company later this year.

In contrast, Paramount wants to buy the entire company and has offered more than $30 a share.

Last week, Paramount sweetened its bid for Warner, adding a $2.8-billion “break fee” that Warner would have to pay Netflix if the company pulled the plug on that deal. Paramount also said it would pay Warner investors a “ticking fee” of 25 cents a share for every quarter after Jan. 1 that the deal does not close.

“While we have tried to be as constructive as possible in formulating these solutions, several of these items would benefit from collaborative discussion to finalize,” Paramount said last week as it angled for a chance to make its case. “We will work with you to refine these solutions to ensure they address any and all of your concerns.”

Netflix agreed to give Warner Bros. Discovery a temporary waiver from its merger agreement to allow Warner Bros. Discovery to reengage with Paramount, which lost the bidding war on Dec. 4.

“We granted WBD a narrow seven-day waiver of certain obligations under our merger agreement to allow them to engage with PSKY to fully and finally resolve this matter,” Netflix said Tuesday in a statement. “This does not change the fact that we have the only signed, board-recommended
agreement with WBD, and ours is the only certain path to delivering value to WBD’s stockholders.”

Netflix has matching rights for any improved Paramount offer. The company renewed its confidence in its deal and its prospect to win regulatory approval.

“PSKY has repeatedly mischaracterized the regulatory review process by suggesting its proposal will sail through, misleading WBD stockholders about the real risk of their regulatory challenges around the world,” Netflix said in its statement. “WBD stockholders should not be misled into thinking that PSKY has an easier or faster path to regulatory approval – it does not.”

Warner Bros. Discovery acknowledged that Paramount’s recent modification “addresses some of the concerns that WBD had identified several months ago,” according to the letter to Paramount.

But Warner Bros. Discovery added Paramount’s offer “still contains many of the unfavorable terms and conditions that were in the draft agreements … and twice unanimously rejected by our Board,” Warner Bros. Discovery said.

Warner’s board told Paramount it will “welcome the opportunity to engage” during the seven-day negotiation period.

Paramount has been pursuing the prized assets since last September.

“Every step of the way, we have provided PSKY with clear direction on the deficiencies in their offers and opportunities to address them,” Warner Chief Executive David Zaslav said in a statement. “We are engaging with PSKY now to determine whether they can deliver an actionable, binding proposal that provides superior value and certainty for WBD shareholders.”

Feb. 16 (UPI) — Warner Bros. Discovery is considering reopening talks with Paramount Skydance after Paramount sweetened its offer to buy the company last week, sources say.

Bloomberg News first reported Sunday that WBD was considering the offer.

In October, Warner Bros. said it was open to offers, and on Dec. 5, after a bidding war between Netflix and Paramount, WBD agreed to Netflix’s offer. Then Paramount launched a hostile bid to buy WBD, but the board wasn’t budging. Then Paramount announced that Oracle creator Larry Ellison was backing the deal with $40 billion in equity. On Jan. 20, Netflix changed its offer to all cash, then on Feb. 10, Paramount did the same and added some sweeteners.

The sweetened deal included paying the $2.8 billion termination fee that WBD would owe Netflix and an agreement to back WBD’s debt costs. It also agreed to pay a ticking fee of 25 cents per share for each quarter the deal is delayed, starting in 2027, totalling about $650 million in cash per quarter.

Paramount and Netflix have both said they would be willing to raise their bids, Bloomberg reported. This is the first time, though, that WBD has given serious consideration to Paramount’s offer. It has until Feb. 25 to respond to Paramount’s offer.

Some WBD shareholders, including the investment firm Ancora, have expressed concerns with Netflix’s deal. One main issue is whether it would pass federal scrutiny. Paramount’s connection with Larry Ellison is a bonus because he’s friendly with President Donald Trump, who has said he would get involved with the process.

Last week, Paramount appointed Rene Augustine as its senior vice president of global public policy. Augustine is a former lawyer in the Trump administration, further bolstering Paramount’s regulatory clout.

Netflix has said it’s confident it can pass regulatory scrutiny. Its co-CEO Ted Sarandos faced a Senate hearing on Feb. 4 about the deal. Paramount didn’t participate.

Warner Bros. is waiting for the Security and Exchange Commission to approve its filings, which would allow it to schedule a shareholder vote on the Netflix offer.