President Trump endorses David Ellison’s bid to acquire Paramount Global, despite his administration’s regulators stalling the deal.
Trump’s $20 billion lawsuit against Paramount’s CBS division complicates the merger, with settlement talks ongoing.
The deal is backed by Larry Ellison, a Trump ally, who provides $6 billion in financing, linking the acquisition to political ties.
The merger’s outcome hinges on resolving Trump’s legal and political disputes, overshadowing business fundamentals.
President Trump publicly endorsed David Ellison’s bid to acquire Paramount Global, a deal his own administration’s regulators are stalling. The praise is directly entangled with his $20 billion lawsuit against Paramount’s CBS division, creating a complex power play that leaves the multi-billion-dollar merger in limbo.
The art of the deal… breaker: When asked about the deal, Trump called Skydance CEO David Ellison “great,” but immediately pivoted to his lawsuit over a 60 Minutes interview with Kamala Harris. He claimed CBS deceptively edited her “election threatening” answer, while the network maintains it simply used different parts of the same response and called the suit “an affront to the First Amendment.” The two sides are now in settlement talks, with Paramount reportedly offering $15 million, short of the $25 million and public apology Trump’s team wants.
Collateral damage: The pressure has shaken up leadership at CBS, with Trump gloating that ‘they’re all getting fired.’ His comment was aimed at the recent departures of 60 Minutes executive producer Bill Owens and CBS News president Wendy McMahon. Both executives cited clashes with corporate leadership over the lawsuit in their exit memos, with Owens saying he could no longer make “independent decisions” and McMahon stating the company and she “do not agree on the path forward.”
Deep pockets, deep ties: The deal is backed by capital with close ties to the administration. David Ellison’s father, Oracle co-founder Larry Ellison, is a prominent Trump ally providing $6 billion in financing for the acquisition. The elder Ellison also recently partnered with the White House on a half-trillion-dollar AI infrastructure project, and he and his son were recently spotted with Trump at a UFC event.
The bottom line: The Paramount-Skydance deal now hinges less on business fundamentals and more on the outcome of a high-stakes legal and political battle. Trump has effectively created a situation where his personal grievance with CBS is the main roadblock to a merger he publicly supports, putting all parties in a precarious position.
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Also on our radar: The drama extends beyond the White House briefing room. Behind the scenes, Paramount executives are reportedly delaying a settlement over fears of a bribery backlash, while a rival bidder has filed a complaint with the FCC over Ellison’s meetings with Trump. For those wanting to judge for themselves, CBS News has released the full, unedited footage and transcript of the interview at the center of the controversy.
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