{"id":4286,"date":"2026-07-15T23:06:39","date_gmt":"2026-07-15T23:06:39","guid":{"rendered":"https:\/\/relocationobserver.com\/?p=4286"},"modified":"2026-07-15T23:06:39","modified_gmt":"2026-07-15T23:06:39","slug":"david-and-larry-ellison-sued-by-paramount-investor-alleging-illegal-side-deal-with-donald-trump-to-secure-u-s-approval-for-warner-bros-takeover","status":"publish","type":"post","link":"https:\/\/relocationobserver.com\/?p=4286","title":{"rendered":"David and Larry Ellison Sued by Paramount Investor Alleging \u2018Illegal\u2019 Side Deal With Donald Trump to Secure U.S. Approval for Warner Bros. Takeover"},"content":{"rendered":"
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\nParamount Skydance chief David Ellison and his tech billionaire dad Larry Ellison have been sued by a Paramount shareholder who alleged they cut an \u201cillegal\u201d deal with President Donald Trump to secure U.S. governmental approval for the takeover of Warner Bros. Discovery.<\/p>\n

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\n\tThe shareholder lawsuit, filed Tuesday in Delaware Chancery Court, seeks to block Paramount\u2019s $111 billion merger with WBD and also seeks unspecified monetary damages. According to the suit, the Ellisons allegedly promised \u201cillegal private benefits to President Trump in order to remove federal regulatory barriers.\u201d<\/p>\n

\n\tPer the lawsuit, the Ellisons\u2019 side deal with Trump included \u201cthe opportunity to improperly funnel cash\u201d to to the president by settling his legal claims against CNN, as well as promises that CNN anchors whom Trump does not like would be fired after the WBD takeover. \u201cThe Ellisons\u2019 actions not only harm the reputations of the news outlets they currently own, which are hemorrhaging viewers, but they are latent liabilities waiting to be triggered by a future administration,\u201d the suit says.<\/p>\n

\n\tThe complaint was filed a day after 12 Democratic state attorneys general filed a federal lawsuit seeking to block the Paramount-WBD merger on antitrust grounds, alleging it would give the combined company undue control in theatrical and cable TV markets. The WGA also sued to stop the merger, claiming it would hurt writers\u2019 pay and job opportunities.<\/p>\n

\n\tReps for Paramount Skydance, Oracle and the White House did not immediately respond to requests for comment. (Trump is not named as a defendant.)<\/p>\n

\n\tSince the Paramount-Skydance deal closed in August 2025, \u201cthe Ellisons proceeded to remake CBS in the president\u2019s image, bought properties he enjoyed, and even hosted events to honor him,\u201d the suit said. \u201cThis helped the Ellisons, but it appears to have hurt Paramount.\u201d Larry Ellison was a primary financial backer of the Paramount Global deal and is personally backstopping the Warner Bros. takeover as well.<\/p>\n

\n\tParamount\u2019s proposed WBD acquisition was given a green light from the U.S. Justice Department\u00a0in mid-June, which did not impose any requirements for divestitures or other concessions on the part of Paramount Skydance. Top DOJ officials cleared Paramount-WBD over the objections of lower-ranking lawyers at the department, who were inclined to challenge the deal, the Wall Street Journal reported.<\/p>\n

\n\tAfter Trump indicated his preference for Paramount to acquire WBD \u2014 over Netflix\u2019s deal to buy Warner Bros.\u2019s streaming and studio businesses \u2014 federal regulators took a conspicuously hands-off approach to the reviewing the Paramount-WBD merger, according to the suit. Per the complaint, there has been no indication that the deal is under review by the U.S. Committee on Foreign Investment in the United States (CFIUS), despite Paramount lining up $24 billion from the sovereign wealth funds of Saudi Arabia, Qatar and the United Arab Emirates. According to Paramount, the three Middle Eastern funds would own 38.5% of the combined Paramount-Warner Bros. Paramount has previously said foreign investors backing the WBD bid will not have board seats or voting shares, and thus CFIUS review is not warranted.<\/p>\n

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\n\tAccording to the shareholder lawsuit, the lack of scrutiny of the Paramount-WBD deal introduces risk for Paramount investors. The suit said that \u201cfuture presidential administrations are likely to subject such an ownership structure to intense and persistent scrutiny, creating significant long-term exposure for Paramount. The court should use its equitable power to stop defendants from reaping personal benefits based on illegal activity.\u201d<\/p>\n

\n\tThe Paramount investor named as lead plaintiff in the lawsuit is Paul Robbins, who is being represented by Thomas Law, Public Integrity Project and Freedom of the Press Foundation. A copy of the complaint is available at .<\/p>\n

\n\tSeth Stern, chief of advocacy at the Freedom of the Press Foundation, said in a statement about the lawsuit: \u201cThe economic terms of this merger, on their own, make no sense for Paramount shareholders. They make even less sense given reports of the Ellisons\u2019 commitments to Trump to tank CNN\u2019s reputation and viewership just like they did at CBS. CNN and CBS viewers want real journalism. If Paramount\u2019s news networks are watered down to appease the administration, they\u2019ll stop tuning in, and the public will be less informed.\u201d<\/p>\n

\n\tBrendan Ballou, CEO of the Public Integrity Project, commented: \u201cAmerica\u2019s richest people want to turn America\u2019s most important media outlets into propaganda machines for the president. This is bad for Paramount\u2019s shareholders. This is bad for democracy. And this is deeply corrupt. This case is about exposing and stopping that corruption.\u201d<\/p>\n

\n\tIn addition to David and Larry Ellison, the suit names as defendants Paramount Skydance board members: Gerry Cardinale, Safra Catz, Andrew Brandon-Gordon, Paul Marinelli, John Thornton, Barbara Byrne, Andrew Campion, Justin Hamill and Sherry Lansing.<\/p>\n

\n\tAccording to the lawsuit, the stockholder derivative action brought by Robbins is against \u201cLawrence and David Ellison, Paramount\u2019s father-son controlling stockholders, to prevent them from profiting from breaches of their fiduciary duty of loyalty as Paramount\u2019s controllers,\u201d as well as David Ellison in his capacity as CEO and chairman of Paramount Skydance \u201cto prevent David Ellison from profiting from breaches of his fiduciary duty of loyalty as a Paramount director\u201d; and \u201cthe entire Paramount Board, to prevent them from closing a merger transaction with Warner Bros. Discovery (the \u2018Merger\u2019) that, as currently configured, would allow Paramount fiduciaries to profit from an illegal bribery scheme in breach of their fiduciary duties of loyalty to Paramount and otherwise in violation of bedrock Delaware corporate law.\u201d<\/p>\n

\n\tThe plaintiff, Paul Robbins, is currently a Paramount stockholder and has \u201ccontinuously been a Paramount stockholder since before the August 7, 2025 combination of Paramount Global and Skydance\u201d that created Paramount Skydance, per the lawsuit.<\/p>\n

Read more Spain\u2019s World Cup Victory Over France Averages 11.5 Million Viewers on Fox, Most-Watched Semifinals Game Ever on English-Language U.S. TV<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Paramount Skydance chief David Ellison and his tech billionaire dad Larry Ellison have been sued by a Paramount shareholder who alleges they cut an “illegal” deal with President Donald Trump to secure U.S. governmental approval for the takeover of Warner Bros. Discovery.<\/p>\n","protected":false},"author":1,"featured_media":4285,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[413,238,414,433,434],"class_list":["post-4286","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-film","tag-david-ellison","tag-donald-trump","tag-larry-ellison","tag-paramount-skydance","tag-warner-bros-discovery"],"yoast_head":"\nDavid and Larry Ellison Sued by Paramount Investor Alleging \u2018Illegal\u2019 Side Deal With Donald Trump to Secure U.S. Approval for Warner Bros. 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