Paramount Skydance Corp (NASDAQ:PSKY) CEO David Ellison said the antitrust lawsuits brought by 12 states and the Writers Guild are not really about competition, as he expressed confidence in the deal with Warner Bros. Discovery Inc. (NASDAQ:WBD).
On Tuesday, in an Op-ed published by the New York Times, Ellison said, “I believe this fight is not really about market share…The issue is whether I can be trusted as a steward of Warner’s CNN.”
Ellison said speculation about his politics and intentions is misplaced, noting he has voted for candidates from both parties and holds a mix of conservative and liberal views. He added that he does not intend to shape newsroom coverage based on his personal beliefs, emphasizing that news should be “independent” and be grounded in facts and truth.
“Our journalists will continue to answer to the facts and to all the people they serve — not to any party or cause,” he said.
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Ellison’s Vision for Hollywood Revival
The CEO wrote that the proposed Paramount-Warner merger is centered on strengthening the movie and TV business at a time when Hollywood is struggling against technology platforms and declining production, particularly in California. He highlighted Paramount’s recent expansion, doubling its theatrical slate from eight to 15 films, greenlighting 40 new or returning Paramount+ series, planning 90 TV series in 2026, and increasing content spending by $1.5 billion before the merger.
Looking ahead, the combined company aims to produce 30 theatrical films, 170 TV series annually, and invest more than $30 billion in content each year. While acknowledging that no studio can guarantee blockbuster hits, Ellison promises a greater volume of creative work and investment in the entertainment industry.
“Hollywood’s story can have a happy ending only when we connect with our audience,” he said.
During the company’s second-quarter earnings call, Ellison said that he is "highly confident" that the deal with Warner Bros. Discovery would close, adding that the merger would strengthen the company’s streaming and content business, making it better positioned to compete with larger rivals like Netflix Inc. (NASDAQ:NFLX) and Amazon.com Inc. (NASDAQ:AMZN)
Merger Trial Delay Raises Stakes
Ellison’s remarks come as a federal judge, on Tuesday, scheduled the antitrust trial over Paramount’s proposed acquisition of Warner Bros. Discovery for March 2, 2027, delaying the merger by at least seven months.
The lawsuits, filed by a coalition of state attorneys general and the Writers Guild of America, seek to block the deal. The delay is expected to be costly, as Paramount would owe WBD shareholders about $7 million per day after Sept. 30 if the merger remains unfinished, potentially exceeding $1 billion in ticking fees before a ruling is issued.
In an earnings call, Ellison said that the company is “absolutely open to finding a solution out of court, but we also really believe that we’ll win at trial.” He added, “There’s nothing at risk.”
Mixed Results for Paramount
On Tuesday, Paramount Skydance reported mixed second-quarter results, with revenue rising 1% year-over-year to $6.91 billion, beating estimates, while profit missed analyst expectations at $41 million, or 4 cents per share.
Streaming revenue increased 9% to nearly $2.5 billion, driven by strong subscriber growth from Dutton Ranch, sporting events including UFC Freedom 250 and the FIFA World Cup, helping Paramount+ add 2 million subscribers to reach 81.6 million.
Meanwhile, Studio revenue totaled $1.3 billion, supported by higher third-party sales and content licensing, though a weaker theatrical lineup led by Jackass: Best and Last trailed last year’s Mission: Impossible — The Final Reckoning.
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Price Action: Paramount shares closed at $8.38 on Tuesday, up 1.95%, according to Benzinga Pro. On a year-to-date basis, it declined 36.42%.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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