David Ellison — the founder of a film production company and son of billionaire Larry Ellison — has been at the helm of Paramount Skydance for just over a year. He's been fighting to acquire Warner Bros. Discovery for nearly as long.
The latest roadblock in his path, a group of state attorneys general seeking to stop the deal, may be his toughest yet. The antitrust hurdle and related delay have left the CEO hunting for avenues to get the deal done.
The delay in closing Paramount's acquisition of WBD could add hefty costs on top of the $110 billion proposed price tag at a time when media companies across the landscape are under intense pressure.
Yet, with a trial in the antitrust case set for March, Ellison has never felt more confident that the deal not only makes sense, but will get completed, according to a person familiar with his thinking, who asked to remain unnamed to speak candidly.
"The company believes strongly in this," Paramount's lead trial attorney Jeffrey Kessler said on CNBC in July, adding the company was prepared to bring the matter to the Supreme Court if necessary.
Still, Ellison appears to be making little ground with California Attorney General Rob Bonta, who is leading the states' charge in court. Both sides have said they are eager to make amends outside of the courtroom.
"I think the whole issue there is, will the state AGs be interested in settling, and I'm not quite sure there's any real incentive for them to settle given the fact the California home constituency here is overwhelmingly against the transaction," said Tom Rogers, a media veteran who's currently senior advisor to Versant Media Group and executive chairman of AI film and TV production company Fountain 0.
A Paramount spokesperson declined to comment for this article.
Ellison's pursuit of WBD began last September with three unsolicited bids to take over the storied entertainment company, which includes the legendary film studio, a portfolio of pay TV networks and the HBO Max streaming business.
Ellison's interest ultimately spurred a formal sale process that superseded a plan by WBD to split in two. When Warner Bros. Discovery crowned Netflix the bidding war winner, Ellison went hostile and promised WBD shareholders a premium.
In February, Netflix abandoned its pending transaction and Paramount entered into an agreement to buy the entirety of WBD. The deal has won approval from all global regulators, including the Antitrust Division of the U.S. Department of Justice.
That leaves Bonta and the other 11 suing states as the final threat to Ellison's long-sought-after acquisition.
Bonta has said his aim is in part to take up the baton where he feels President Donald Trump's administration has fallen short on regulation. He has said Trump has gotten "involved improperly" in other merger situations.
Meanwhile, the Ellison family's ties to Trump have drawn criticism. Larry Ellison is a longtime supporter of Trump, and the president has said publicly he'd like to see Warner Bros. Discovery's CNN land in Paramount's hands.
When speculation began in the spring that a group of states would seek to challenge the merger — putting particular focus on two segments of the combination: their extensive portfolios of pay TV networks and powerhouse film studios — Ellison's Paramount immediately began its outreach to Bonta's office, according to the person familiar with the matter. By mid-May the company had sent a list of potential concessions to Bonta, added the person.
