"They're friends of mine. They're big supporters of mine. And they'll do the right thing," Trump said of the Ellisons earlier this month, declaring that CBS has "great potential" under new leadership. CBS has already taken several steps to appease the president.
Now, the Trump administration reportedly favors the newly formed media behemoth, Paramount Skydance, to buy Warner Bros. Discovery, which publicly announced earlier this week that it is seeking bids.
The New York Post reported Thursday that Paramount Skydance is "clearly in the catbird seat." Citing an unnamed government official with direct knowledge of the matter, the Post reported that "a number of rival bidders are likely to face stiff hurdles from US regulators in the blockbuster auction."
Paramount Skydance has so far made several offers to Warner Bros. Discovery, all of which were rejected as insufficient.
But Ellison appears confident that his firm will ultimately acquire Warner Bros. Discovery, given his personal relationship with Trump. According to CNN, "Ellison's allies are privately arguing that he is the only buyer who would pass muster with Trump administration regulators."
"Privately, Ellison is exuding the kind of confidence that comes from having tens of billions in cash," CNN reported. "His ambitions are bolstered by his father, Larry Ellison, Oracle's executive chairman, who currently ranks as the second-richest man in the world. Together they are 'building an unprecedented media empire,' as The Washington Post put it earlier this month."
Watchdogs and Democratic lawmakers have voiced alarm over Ellison's efforts. Sen. Elizabeth Warren (D-Mass.) warned earlier this week that if Paramount Skydance ultimately purchases Warner Bros. Discovery, "one giant company could control almost everything you watch on TV."
Matt Stoller, director of research at the American Economic Liberties Project, called the Trump administration's reported position on Ellison's bid for Warner Bros. Discovery "wildly corrupt."
The New York Times notes that the potential merger "would combine two of the largest Hollywood studios, Warner Bros. and Paramount, granting huge clout at the box office and putting CNN and CBS News under the same corporate umbrella, which would give the new company enormous sway over the news industry."
"It would combine Paramount+ and HBO Max, two of the biggest streaming services, bringing the company's movies and shows into hundreds of millions of living rooms," the Times added.
The Writers Guild of America, a labor union that represents TV and news writers, spoke out forcefully against the possibility of a Paramount Skydance-Warner Bros. merger on Thursday, saying in a statement that "merger after merger in the media industry has harmed workers, diminished competition and free speech, and wasted hundreds of billions of dollars better invested in organic growth."
“At a time when the country demands, and needs, the broadest possible set of views and stories and voices," the union said, "we have handed over the keys to the media kingdom to giants whose sole motivation is to maximize their short-term investment return, not to inform or enlighten or entertain."