White House Weighs In on Media Mega-Merger
Senior White House officials have privately expressed their support for Paramount Skydance to acquire Warner Bros Discovery, according to sources familiar with the matter. The discussions, which have taken place in recent weeks, position Paramount as the favoured bidder as it attempts a takeover of the media giant.
The situation took a more controversial turn when Larry Ellison, the largest shareholder of Paramount and executive chairman of Oracle, engaged in dialogue with White House connections about potential programming changes at CNN. Sources indicate that these informal talks covered the possibility of removing CNN hosts whom Donald Trump is said to particularly dislike, including Erin Burnett and Brianna Keilar.
Behind the Scenes of a Potential Media Shakeup
The conversations, described by anonymous sources due to their sensitive nature, also ventured into potential replacements for Burnett and the idea of broadcasting CBS assets, such as the flagship 60 Minutes programme, on CNN. Although Ellison holds no formal role at Paramount, which is run by his son David Ellison, his significant ownership stake and influential connections give his opinions considerable weight.
This behind-the-scenes lobbying effort underscores the intense interest from the Ellison camp in securing the Warner Bros Discovery acquisition. It also highlights the White House's apparent interest in seeing its preferred bid succeed. Paramount is preparing a bid for the entirety of Warner Bros Discovery ahead of a critical 20 November deadline for non-binding, first-round offers.
The relationship between the Trump administration and the Ellisons appears cordial. This rapport was bolstered earlier when Paramount paid a $16 million settlement to the president over an interview that 60 Minutes conducted with Kamala Harris last year. Furthermore, Paramount could benefit from additional ties to Trump's orbit, as several current and former Washington consultants, including some now inside the White House, previously held contracts with Oracle.
Regulatory Hurdles Appear Minimal
From a regulatory standpoint, the proposed acquisition seems likely to face minimal obstacles. The primary review would be an antitrust assessment by the Department of Justice. Former officials from the antitrust division under Assistant Attorney General Gail Slater have suggested they see no immediate competition issues arising from the deal.
"This won't pose serious antitrust issues," one former official stated, adding that Ellison's contacts with the White House were a normal part of "the government relations game."
Adding to the smooth regulatory outlook, Brendan Carr, the Federal Communications Commission chair, had previously indicated that a Paramount acquisition of Warner Bros Discovery would be very unlikely to require any review by his commission. He noted he had not spent time considering the public interest implications of such a deal as he did not expect it to come before the FCC.
Other parties, including Netflix and Comcast, are also interested in Warner Bros Discovery. However, Trump's potential personal objections to Comcast-owned NBC News's consistent criticism could work against its bid. Both Paramount and Comcast believe that acquiring Warner Bros Discovery would provide the greater scale needed to compete effectively in the streaming market, while Netflix is primarily interested in the studio business and HBO's valuable library of films and TV shows.
The convergence of high-stakes media negotiations and political influence marks a significant moment for the future of major news outlets and entertainment conglomerates, with the White House seemingly playing an uncharacteristically active role in the process.
