Two press freedom groups are accusing Paramount Skydance ownerLarry Ellisonof promising “favors” to the Trump administration to win regulatory approval in its bid to take over CNN’s parent company, Warner Bros. Discovery.
Those favors allegedly include making “sweeping” staff changes at CNN, a network that PresidentDonald Trumpoften bashes as “fake news.”
The groups, Freedom of the Press Foundation and Reporters Without Borders, own shares in Paramount Skydance, andsent a letterto the company’s chief legal officer Thursday demanding to see internal documents that could be related to Ellison’s alleged attempt to curry favor with the White House.
The groups cited a Delaware law allowing stockholders to inspect the books and records “for any proper purpose.”
According to the letter, the groups expressed “credible concern that Paramount leadership has offered, solicited, or effectuated a corrupt exchange,” and alleged that promises made to Trump “constitute a breach of fiduciary duties” that opens up the company to a “range of potential civil and criminal penalties.”
Last summer, the Trump administration approved the Ellison family’s bid to acquire Paramount, which includes CBS. SonDavid Ellisonbrought inFree PressfounderBari Weissto head CBS News and makesweeping staffingand editorial changes. Critics have accused her of pandering to the Trump administration in its news coverage.
Larry Ellison reportedly told Trump that he would “implement the CBS playbook” at CNN if the merger is approved, which would mean removing anchors and commentators at the network that Trump doesn’t like, the letter alleged.
Warner Bros. Discovery shareholders overwhelmingly approved the proposed merger just two weeks ago.
“Investors have supported the Larry Ellison family takeover, which would become the biggest Hollywood merger in nearly a decade,”reportedThe Los Angeles Times. “The deal would pay Warner stockholders $31 per share — four times the stock price a year ago.”
Source: Drudge Report
