Paltry Concessions Given to Secure Paramount-Warner Merger Deal Decried as 'Meaningless Bullshit'
"Billionaires have yet again bribed, censored, and bullied their way to the top," said one critic.
"A settlement that promises less than nothing."
That's how one critic of Paramount Skydance's planned acquisition of Warner Bros. Discovery on Tuesday described the paltry concessions extracted by Democratic California Attorney General Rob Bonta and other state officials to enable the proposed $111 billion media megamerger.
Critics argue that the proposed settlement agreement lacks meaningful antitrust enforcement and hands control of major news and entertainment properties to a billionaire family closely aligned with President Donald Trump.
“Every! single! one! of these concessions is meaningless bullshit,” writer Cory Doctorow said Tuesday on Medium. “Bonta just handed the American movie and TV sector to two of the most odious creeps to draw breath, surrendering without firing a shot."
The settlement, which was announced Monday, clears a major roadblock to Paramount CEO David Ellison's takeover of Warner Bros. Discovery, which owns CNN, HBO, Warner Bros. Pictures, and numerous cable networks. The combined company would control nearly 30% of both US theatrical film distribution and basic cable channel licensing.
The agreement contains a pledge to distribute at least 30 films annually for the first two years, then 32 movies each year after, invest hundreds of millions of dollars in US film production, maintain existing theater rental terms for three years, not sell Paramount and Warner Bros. studio lots for five years, and create an editorial independence board for CBS News and CNN.
In a Monday Substack post, American Economic Liberties Project research director Matt Stoller pointed out an apparent loophole in the settlement's film distribution requirement.
“They only have to distribute that many films,” he wrote. “They can make half as many. And those can be co-produced. So in fact, if you add up the numbers, Ellison promised to make fewer films going forward than Paramount and Warner are putting out today."
The settlement's editorial oversight board for CBS News and CNN have also come under fire. The five-member board overseeing the two entities will be appointed and paid by the combined company. Reuters reported Tuesday that the board would have no explicit investigative authority and that the company would be empowered to fill vacancies.
“As we learned from the failed and widely panned Facebook oversight board, a fake bipartisan oversight committee won’t save CNN,” Jessica González, the co-chief executive of the advocacy organization Free Press, said Monday. “We have all the evidence we need from the Ellisons’ destruction of CBS about what they do to warp journalism at Donald Trump’s request.”
David Ellison's father, tech billionaire Larry Ellison, is a Republican megadonor.
Seth Stern, a media attorney and chief of advocacy at the Freedom of the Press Foundation, said that "it's unclear how the attorneys general or courts can constitutionally hold Paramount accountable for the board's actions or inaction without themselves interfering in content."
Stoller noted that the agreement's force-majeure clause, which would reportedly allow Paramount-Warner to dodge its commitments in the event of economic recessions, strikes, and other labor disruptions.
Other opponents of the proposed deal bristle at the Federal Communications Commission’s approval of Saudi and Emirati investment in the new company that would be created if the merger is approved.
Alvaro Bedoya, a senior adviser to the American Economic Liberties Project, lamented that “today, billionaires have yet again bribed, censored, and bullied their way to the top."
“Layoffs will follow. People from [Los Angeles] to Atlanta will lose their jobs, small businesses will lose their contracts, your cable bill and movie ticket will be even more expensive,” he continued. “Dissent against money and power will be even harder to find.”
“This did not have to happen," Bedoya stressed. "Thanks to an extraordinary outpouring of grassroots anger against the merger, a coalition of 12 state attorneys general sued to block it. They beat Paramount in court, winning a court-ordered pause on the merger, and beat them again at the negotiating table, getting the conglomerate to agree to pause the merger until as late as next June.”
“But the Ellison family does not care about the law. Instead, they loudly threatened to leave California if their merger did not go through immediately," he added. "[Gov.] Gavin Newsom caved to that pressure. So did [former state Attorney General] Xavier Becerra. And eventually, so did Attorney General Rob Bonta, agreeing to a weak settlement that will be exceedingly difficult to enforce.”
Stoller said that "there are a bunch of reasons they cleared the deal, such as threats to move the studio out of California, corruption, and general incompetence."
"I personally think CNN is terrible, and I’m glad it’s going to be discredited," Stoller wrote. "I also find it embarrassing that the Democratic AGs used antitrust law in an attempt to shade news coverage. But it’s downright comical they demanded that David Ellison not corrupt CNN by having David Ellison appoint a board ensuring that David Ellison not do that."
