The value of this spectacular transaction is: an astronomical amount of $110 billion.
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As reported by the American technology and media portal Semafor, the breakthrough came after a crucial two-hour meeting between government officials and the management of the buying company.
Paramount Skydance CEO reassures officials
During talks in Washington, the head of Paramount Skydance, David Ellison, was personally involved in convincing regulators to accept the purchase of a competing film stable. The greatest concerns of officials and the film community were whether, after the merger of the giants, new productions would be pushed exclusively to streaming platforms, which would affect traditional cinemas.
However, Ellison firmly declared to maintain the current strategy and wide-scale cinema distribution.
According to Semafor's findings, representatives of the US Department of Justice were apparently convinced by the argument of Paramount Skydance management that the transaction would not harm other studios or creative talents.
Although Warner Bros. shareholders Discovery overwhelmingly supported the merger in April, final success still lacks formal approvals from regulatory authorities. The case is being carefully analyzed not only by Washington, but also by the British antitrust office, the Competition and Markets Authority (CMA), as both corporations operate extensively in Great Britain.
Celebrities protest and California threatens a lockdown
The planned merger generates enormous resistance within the film community itself. Nearly 3.5 thousand people are actively rebelling against market consolidation. famous screen characters – including such iconic names as Jane Fonda and Mark Ruffalo. The signatories of a special protest letter warn against monopolization, drastic limitation of choice for creators, mass layoffs in the industry and an increase in subscription prices.
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Another serious obstacle for billionaires may be local state authorities. California Attorney General Rob Bonta launched an independent investigation into the matter in March. The politician directly signals that he sees a significant threat to healthy competition in the entertainment market in this transaction.
Political background of the takeover of the owner of TVN
The merger also arouses great political emotions. Paramount Skydance is headed by David Ellison, the son of billionaire founder of the Oracle technology empire, Larry Ellison. The elder of the family, who is personally providing financial support for the purchase of WBD, is known for his open and strong support of US President Donald Trump.
After Trump moved back into the White House in January 2025, companies associated with the Ellison family dynamically expanded their influence, taking control of the CBS television network and becoming part of the consortium managing the American branch of TikTok. In both cases, critics accused the new owners of trying to influence the presented content in such a way that it would be beneficial to the current government administration.
