Kamal Ghorui
A new lawsuit has now surfaced in the ongoing battle over Warner Bros. Discovery’s ownership. According to a report by Benzinga, the lawsuit alleges that US President Donald Trump personally assured Oracle founder Larry Ellison that Paramount Skydance would will the bid against Netflix in the Warner Bros. Discovery deal. The suit filed by R.J Cipriani against Paramount’s Skydance, Paramount Global and the Ellison Family claims that Trump told Ellison, ““Larry, it looks like Netflix is gonna get Warner Bros., but if you really, really want it, Larry, I’ll make sure you get it.” This alleged comment was reportedly disclosed to Cipriani by Paramount president Jeff Shell.
Paramount’s calls the allegations baseless
As per the report, Paramount has dismissed the lawsuit and called it completely baseless. “Paramount is aware of the frivolous lawsuit and believes the claims are entirely without merit,” a spokesperson told Deadline, adding that the company intends to defend itself vigorously.The lawsuit outlines Donald Trump’s involvement in Paramount’s bidWhile Trump is not a defendant in the case, the lawsuit outlines how his alleged involvement in Paramount’s bid, including claims that he pushed the production of “Rush Hour 4” as part of the deal. The allegations come amid heightened scrutiny of the acquisition battle, which has drawn attention from lawmakers and regulators.Also, Trump publicly expressed support for Larry Ellison and David Ellison, calling them ‘good friends’. The Trump administration also singled backing Paramount throughout the process, with officials suggesting that Warner Bros. Discovery should consider not only price competition but also which bidder could successfully clear regulatory hurdles.
Paramount and Warner Bros. deal
The acquisition fight between Paramount Skydance and Netflix (NASDAQ: NFLX) for Warner Bros. Discovery has been one of the most closely watched media battles in recent years. Last month, David Ellison’s Paramount Skydance finally made a bid that Warner Bros. Discovery’s board is taking seriously. According to a report by Business Insider, WBD has told the shareholders that Paramount’s latest $31 per share offer ‘could reasonably be expected’ to lead a superior proposal as compared to the existing Netflix deal. This marks the first time in 75 days that Paramount has received encouraging feedback from Warner’s bard after 10 prior attempts. For those unaware, Netflix made an offer of $27.75 per share for WBD’s streaming and studio assets, including HBO. In case Warner’s board decided that Paramount’s bid is superior, then Netflix will have four days to sweeten its offer or risk losing its chance to acquire HBO which is said to be the cornerstone of its Hollywood ambitions.
