Opposition Grows Against Paramount-Skydance Merger with Warner Bros. Discovery

The proposed merger between Paramount Skydance and Warner Bros. Discovery has drawn significant opposition from Senator Elizabeth Warren and the Writers Guild of America. Both parties express concerns regarding the potential consolidation of media power, implications for editorial integrity at CNN, and adverse effects on competition and workers.

On November 15, 2023, Senator Warren criticized the deal, asserting it would place numerous influential news and entertainment outlets under one corporate umbrella. She described the merger as “a terrible deal” that could undermine the diversity of voices within the media landscape. The merger would bring CNN, currently part of Warner Bros. Discovery, under the leadership of David Ellison, CEO of Paramount Skydance, who is backed by his father, Larry Ellison, co-founder of Oracle.

Sources close to the situation indicate that the Ellisons are not merely interested in CNN as a financial asset but also as an opportunity to shift its editorial direction. CNN, already a highly profitable entity with an estimated annual revenue of $500 million, has a vast global reach. The Ellisons’ approach seems aligned with a broader strategy to reshape media platforms that have been perceived as favoring left-leaning narratives.

Bari Weiss, the current editor-in-chief at CBS News and a former columnist for the New York Times, has been instrumental in driving a cultural shift at CBS. If the merger goes through, there is speculation that Weiss could extend her editorial influence to CNN, potentially altering its news programming.

The Writers Guild of America has voiced strong opposition, arguing that merging Warner Bros. with Paramount or any other major studio could severely impact writers, consumers, and market competition. The Guild has vowed to lobby regulators to prevent the merger, emphasizing that such consolidation could lead to detrimental consequences for the entertainment industry.

Legal experts suggest that the merger might not encounter substantial antitrust challenges. The Justice Department and Federal Communications Commission are not expected to impose significant barriers, with FCC Chair Brendan Carr indicating that his agency may not even engage in the review process. This has raised questions about the regulatory landscape surrounding media mergers.

Reports have surfaced indicating that discussions took place between White House officials and Larry Ellison regarding the potential dismissal of CNN anchors Erin Burnett and Brianna Keilar. These anchors have reportedly faced criticism from former President Trump. While these discussions have not been confirmed by either party, a former Justice Department official remarked that such interactions reflect the complexities of the media and government relationship.

The merger attempt follows Paramount Skydance’s successful acquisition of Paramount, which included CBS News. Since taking control, the Ellison family has enacted sweeping changes, including staff reductions and executive reshuffles, and has fostered an environment more receptive to perspectives traditionally considered unconventional in Hollywood.

The potential acquisition of Warner Bros. Discovery is viewed as strategically significant. A former official noted the importance of who owns such major media entities, underscoring the implications for the current administration. As the bidding war progresses, Paramount Skydance is positioning itself strongly against competitors like Netflix and Comcast, appealing to the Warner board with its proposed strategies.

As the landscape of media ownership continues to evolve, the implications of this merger could have lasting effects on the industry as a whole. The ongoing opposition from Senator Warren and the Writers Guild of America highlights the growing concerns about media concentration and its potential impact on content diversity and competition.