Paramount shareholder sues Ellison family, alleges corruption in Warner Bros. Discovery takeover

A Paramount Skydance shareholder has filed a lawsuit accusing the company’s controlling shareholders, Larry Ellison and his son David Ellison, of engaging in corrupt practices to secure regulatory approval for Paramount’s proposed $111 billion acquisition of Warner Bros. Discovery.

The lawsuit, filed this week in the Delaware Court of Chancery by shareholder Paul Robbins, alleges that the Ellisons made “illegal promises and payments” to influence regulators during Paramount’s purchase and the subsequent takeover bid for Warner Bros. Discovery.

The complaint also claims Larry Ellison discussed the future of CNN with U.S. President Donald Trump, allegedly offering major changes at the news network as part of efforts to win support for the deal.

What they are saying

According to the 59-page filing, the Ellison family secured the winning bid for Warner Bros. Discovery by promising sweeping changes at CNN and other personal benefits to the U.S. president.

The case was filed on Robbins’ behalf by the Public Integrity Project and the Freedom of the Press Foundation, an advocacy group that has frequently criticized the Trump administration’s approach to the media.

• The lawsuit argues that Netflix’s decision to withdraw from the bidding process earlier this year reflected concerns about navigating the political environment surrounding the transaction.
• It points to reports that Netflix Co-CEO Ted Sarandos met with senior U.S. officials, including then-Attorney General Pam Bondi, on the same day the streaming giant exited the race.
• The filing further alleges that Trump preferred Paramount’s bid because of his close relationship with the Ellison family, claiming the company has since adopted editorial changes viewed as more favourable to the administration.

Among the developments referenced are leadership changes across Paramount-owned media assets and the departure of late-night television host Stephen Colbert.

However, the lawsuit does not present direct evidence of any agreements between the Ellisons and government officials. Instead, many of its allegations are based on previously published media reports and public documents.

Paramount rejects allegations

Paramount dismissed the claims, describing the lawsuit as a repetition of allegations that have already been publicly addressed.

In a statement, the company said neither Larry nor David Ellison had made commitments to any federal agency, state attorney general or other government body regarding the future of CNN or any other news organisation.

The company maintained that its only objective is to strengthen journalism across its media businesses.

• “As we’ve said consistently, no commitments from either David or Larry Ellison have been made to any government body, state AG or federal agency regarding the future of CNN or any other news property, other than the goal to deliver truth-based journalism,” Paramount said.

What you should know

As Nairametrics previously reported, Paramount first reached an agreement in February 2026 to acquire Warner Bros. Discovery in a deal valued at about $110 billion, triggering a fierce bidding contest with Netflix before emerging as the preferred buyer.

• In April 2026, Nairametrics also reported that Paramount was in advanced discussions to raise nearly $24 billion in equity commitments from Gulf sovereign wealth funds, including Saudi Arabia’s Public Investment Fund (PIF), the Qatar Investment Authority, and Abu Dhabi-based L’imad Holding, to help finance the acquisition.
• The financing package was viewed as a strategic effort to strengthen the company’s balance sheet and reduce execution risks while avoiding significant dilution of control. At the time, Paramount executives reportedly believed the participation of Gulf investors would not trigger a review by the Committee on Foreign Investment in the United States (CFIUS), although the transaction was still expected to face intense regulatory scrutiny.

Earlier in February, Nairametrics reported that Netflix withdrew from the bidding after declining to match Paramount Skydance’s $31-per-share offer, saying the economics of the deal were no longer attractive. The withdrawal cleared the way for Paramount, backed by Oracle co-founder Larry Ellison, whose trust committed $45.7 billion in equity alongside a $57.5 billion debt package arranged by a consortium of major banks.