Paramount Merger Opponents File Emergency Motion Against Settlement Deal

Economy9 sourcesSep 24, 2026

Leans rightFactual rigor 57/100

The Story

Opponents of Paramount's proposed acquisition of Warner Bros. Discovery filed an emergency motion in federal court on Thursday, asking the judge overseeing the merger proceedings to grant them an opportunity to formally oppose a settlement deal.

Paramount reached this settlement earlier this week with a coalition of state attorneys general, led by California's Rob Bonta. The anti-merger coalition, which includes Free Press, the Committee for the First Amendment, and the Future Film Coalition, described the tentative deal as dangerous for democracy. Mara Verheyden-Hilliard, a constitutional rights litigator for the Committee for the First Amendment, stated the consent decree fails to meaningfully address or mitigate the harms that will be caused by this monopoly merger to the entertainment industry, diverse storytelling, independent filmmaking, consumer interests, a free press, First Amendment rights, and democracy.

Judge Araceli Martínez-Olguín of the US District Court for the Northern District of California set a hearing for Thursday at 2:00 pm ET to address outstanding questions regarding the factual and legal underpinnings of the parties’ proposed consent decree. Paramount is seeking to raise a $7.5 billion senior secured term loan as part of a broader financing package for the acquisition, and intends to raise about $44.4 billion of additional secured debt.

The combined company is expected to have about $80 billion in debt after the deal closes. As part of the settlement, Paramount agreed to increase U.S. film production and establish an editorial-independence board for CBS and CNN, avoiding a forced sale of assets. The Department of Justice Antitrust Division closed its investigation in June, despite career staff reportedly leaning towards recommending a challenge.

A shareholder lawsuit alleged President Trump interfered on behalf of the Ellison family, who are contributors to his campaigns. David Ellison, Paramount's head, is the son of Oracle co-founder Larry Ellison, a major donor to President Trump. CNN staffers express anxiety, with one calling the mood like a funeral and a TV executive predicting a bloodbath. Paramount expects the merger to cut about $6 billion in costs.

What they agree on

Opponents of Paramount's acquisition of Warner Bros. Discovery filed an emergency motion in federal court on Thursday.
The motion seeks an opportunity to formally oppose a settlement deal reached between Paramount and a coalition of state attorneys general.
The settlement includes Paramount's pledge to increase U.S. film production and establish an editorial-independence board for CBS and CNN.
The merger is valued at $110 billion and is expected to result in approximately $80 billion in debt for the combined company.
CNN staffers have expressed anxiety and fear regarding potential overhauls and cost cuts following the merger.

Where they split

Common Dreams and The Intercept frame the settlement as "dangerous for democracy" and "toothless," emphasizing concerns about media consolidation and potential censorship.
Breitbart News and The Western Journal focus on the political implications, suggesting the merger's approval means a "far left wing CNN will die" and linking it to Democratic "panic."
Business Recorder and Reuters provide details on the financial aspects of the deal, including Paramount's plans to raise $7.5 billion in debt and the expected $80 billion in total debt for the combined company.
The American Prospect and The Intercept highlight alleged political interference by President Trump on behalf of the Ellison family, connecting it to campaign contributions and regulatory actions.