The proposed $111 billion merger between Paramount and Warner Bros. Discovery (WBD) has run into fresh legal trouble after a Paramount shareholder filed a lawsuit accusing tech billionaire Larry Ellison and his son David Ellison of securing political favours from US President Donald Trump to win regulatory approval.
The lawsuit, filed in the Delaware Chancery Court by Paramount investor Paul Robbins, seeks to block the merger, alleging that the Ellisons entered into an “illegal” backroom arrangement with the Trump administration to smooth the deal’s path through federal regulators.
Alleged promises to Trump
According to the complaint, cited by Variety, the lawsuit claims the Ellisons offered “illegal private benefits” to President Trump in exchange for favourable treatment during the merger review process.
The filing alleges the agreement included efforts to channel money to Trump by settling his legal dispute involving CNN. It also claims the Ellisons promised that CNN anchors disliked by Trump would be removed following completion of the merger.
Claims of political influence
The lawsuit further alleges that, after Skydance completed its acquisition of Paramount in August 2025, the Ellisons began reshaping CBS and other media assets to align with Trump’s preferences.
According to the complaint, they “proceeded to remake CBS in the president’s image, bought properties he enjoyed, and even hosted events to honour him.”
The shareholder argues these decisions have alienated audiences and caused the company’s television networks to lose viewers.
Regulatory approvals questioned
The legal challenge also points to what it describes as unusually favourable regulatory treatment.
The complaint notes that the US Department of Justice cleared the Paramount-WBD merger in June without requiring any asset sales or concessions. It further claims federal regulators adopted a more accommodating approach after Trump publicly indicated he preferred Paramount’s bid for Warner Bros.
Discovery over a competing offer from Netflix.
The lawsuit comes a day after 12 Democratic state attorneys general filed a separate federal lawsuit seeking to block the merger on antitrust grounds, arguing the combined company would dominate the theatrical exhibition and cable television markets.
The Writers Guild of America (WGA) has also challenged the transaction, arguing the merger would reduce employment opportunities and suppress wages for writers.
Paramount rejects allegations
Paramount has strongly denied the accusations, dismissing the lawsuit as a repetition of previously reported claims.
“This lawsuit recycles allegations that have already been reported and already addressed. No commitments from either David or Larry Ellison have been made to any government body, state attorney general, or federal agency regarding the future of CNN or any other news property, other than the goal to deliver truth-based journalism,” a Paramount spokesperson said.
The company added that the merger is driven by commercial considerations and would expand consumer choice while increasing investment in original programming.
