Warner Bros. Merger Discovery and Paramount Skydance, two historical film studios, would mean the emergence of a power controlling, among others, HBO Max and Paramount Plus platforms, CNN and CBS News channels, and extensive film libraries.
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In Poland, the case is being followed with particular attention – if the merger takes place, Paramount will become the new owner of TVN Group.
Congressmen warn against monopoly
A group of 34 congressmen, including such influential figures as Nancy Pelosi and Ro Khanna, sent a letter to California Attorney General Rob Bonta. Parliamentarians demand a detailed examination of the antitrust effects of this gigantic transaction.
“We remain concerned that the proposed merger could harm California workers and consumers” wrote the politicians, pointing to the risk of an increase in ticket and subscription prices and further job reductions in the industry, which has already lost 42,000 jobs in recent years.
Over 4,000 people also voted against the merger. cinema people, including stars like Jane Fonda and Ben Stiller. Michele Mulroney from the Writers Guild of America West also spoke: – Writers have observed subsequent mergers, after which fewer and fewer companies control what our members can receive remuneration for – she emphasized.
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The shadow of politics and capital from the Middle East
Emotions arouse not only market issues, but also political connections. David Ellison, head of Paramount and son of billionaire Larry Ellison, maintains a close relationship with Donald Trump. Some politicians suggest that the Republican administration may favor the transaction due to these familiarities and the desire to influence CNN's programming line.
The financing structure raises additional controversy. According to American senators, almost half of the shares in the new entity could be acquired by wealth funds from Saudi Arabia, Qatar and Abu Dhabi. Critics fear that such a large influence of foreign capital on key American media is risky.
Survival strategy or financial trap?
Paramount denies the allegations, arguing that a merger is the only way to remain competitive with technology giants. Ellison promises to maintain the production scale at the level of 30 premieres per year. However, the price of this stability is high – the new group would have to take over as much as USD 79 billion. debt.
Despite strong resistance in California, experts predict that the transaction can pass through federal antitrust screens without major obstacles. Paramount expects the acquisition to be finalized before the end of September this year.
