Paramount Reports Getting Multiple Subpoenas Over Warner Bros Merger as Democrats Demand Scrutiny of Deal

Paramount Skydance says it has received subpoenas from multiple state attorneys general regarding its pending merger with Warner Bros. Discovery, as Democrats call for intense scrutiny of the deal.Paramount Skydance is run by David Ellison, the son of a Trump supporter and the founder of Oracle, Larry Ellison. The pending merger has frightened liberal journalists who worry that the Ellisons will make drastic changes to one of WBD’s properties, CNN. A report in the Guardian said that Larry Ellison has discussed firing CNN personalities that the president does not like if the deal goes through. Those concerns — fueled by Skydance’s acquisition of Paramount last summer and the efforts to address complaints of liberal bias at CBS News — have led to a heightened interest in the WBD merger. In a quarterly report to the Securities and Exchange Commission, Paramount Skydance said it has received subpoenas from “various state attorneys general in connection with the WBD Merger.”“These subpoenas … relate to state investigations of the WBD merger, with a particular focus on the DOJ’s investigation and the competitive effects of the WBD Merger,” the filing says. “We have been cooperating with the state attorneys general in responding to their requests.”The filing did not say how many attorneys general had issued subpoenas regarding the merger. However, California’s attorney general, Rob Bonta, has vowed to conduct a “rigorous” review of the deal. In February, he said the California Department of Justice has an “open investigation” into the merger, adding, “Paramount/Warner Bros is not a done deal.”In March, a coalition of press freedom organizations and other public interest groups urged Mr. Bonta to challenge the merger on the grounds that it would give the combined company “significant leverage over workers, from actors to writers to producers to creators, which would also substantially lessen competition for labor.”The groups also raised concerns that the deal would mean that the “combined entity would co-own CBS News and CNN, posing a substantial anti-competitive concern in the news media market.”On Thursday, more than 30 Democratic lawmakers in California urged Mr. Bonta to “closely scrutinize” the WBD deal and claimed the federal government would approve it because of the president’s relationship with the Ellisons. “Given that we cannot have confidence that the Trump Administration review of the merger will be conducted according to the law, and with the best interests of American workers and consumers in mind, it is even more vital that you conduct a thorough, independent review,” the lawmakers said. Media insiders believe that the Trump administration will approve the deal. Mr. Trump recently expressed optimism that David Ellison can “bring [CNN] back to its former credibility and glory.” It is unclear whether Mr. Bonta plans to challenge the merger in court, as he has not explicitly expressed opposition to the deal. However, a different case has shown that state attorneys general may be able to at least delay a planned merger of media companies that the federal government has approved, if not block it. In March, the Trump administration approved the $6.2 billion merger of two larger local television groups, Nexstar and Tegna. The deal would have led to one company owning 265 television stations across 44 states. But the merger has come to a halt. More than 13 states signed on to a lawsuit seeking to block the merger, arguing that it violates antitrust laws. The legal challenge was joined by three Republican attorneys general. In April, a federal judge issued a preliminary order and ordered Nexstar and Tegna to stop their integration efforts until the lawsuit is resolved.

Paramount Reports Getting Multiple Subpoenas Over Warner Bros Merger as Democrats Demand Scrutiny of Deal

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