Deadline27%
Paramount Calls Shareholder Suit Vs Ellisons, Board Recycled Allegations, Says No Commitments Made On News Coverage While Pursuing WBD 54%
By Jill Goldsmith66%
7/15/2026, 5:30:00 PM
BS Summary: This article contains 23 faulty reasoning types, including Ambiguity (Equivocation), Confirmation Bias, and Burden of Proof, with Negativity Bias as the most egregious example at 43.6% saturation with 335 hits. Analysis detected 1,758 faulty-reasoning hits from 769 analyzed words, generating a BS Score of 52.1% and a BS Rank of 54% (10,200 of 21,887 articles). This article is worse (more manipulative) than 53.40% of the article peer group.
UPDATE: Paramount is pushing back on a recently filed shareholder lawsuit, saying it “recycles allegations that have already been reported and already addressed.”
“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,” said a spokesperson for the company Wednesday.
“Further, as we communicated in summer 2025 regarding the Skydance-Paramount transaction: ‘As with any transaction that requires regulatory approval, Skydance executives and its representatives have had routine and customary interactions with government officials, including with the Administration, Congress, and federal regulators… throughout its history and during the review of the proposed acquisition of Paramount, Skydance has fully complied with all applicable laws, including our nation’s anti-bribery laws.’
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The Warner Bros.
Discovery transaction “stands on its own merits,” the statement adds.
“Combining these two libraries and platforms gives consumers more choice, not less — greater investment in original programming, a stronger competitor to streaming rivals, and a more durable footing for journalism and storytelling alike.
We remain confident in the merger’s fundamentals and will continue toward closing.”
PREVIOUSLY: A Paramount Skydance shareholder has filed a derivative lawsuit against officers and directors of the company alleging breach of fiduciary duty in its pursuit of Warner Bros.
Discovery, the latest in a string of legal actions seeking to derail the merger.
Paramount shareholder Paul Robbins filed the suit against CEO David Ellison, his father Larry Ellison and Par’s 10-member board of directors in Delaware Chancery Court.
It centers on claims of trading editorial independence for regulatory approval by the Trump administration.
That includes alleged promises to overhaul CNN and settling a “frivolous” lawsuit by the president against 60 Minutes, followed by a series of moves to make the network’s news coverage more amenable to Trump.
It says an alleged "illegal bribery scheme in breach of their fiduciary duties of loyalty to Paramount and otherwise in violation of bedrock Delaware corporate law" has damaged the the company's reputation and risks potential liability in the future.
The suit is backed by Freedom of the Press Foundation and the Public Integrity Project.
A derivative lawsuit is filed by a shareholder on behalf of a corporation against directors, officers, or other parties that have harmed the company by breaching their duties.
Since the claim belongs to the corporation, not the shareholder, any recovery goes to the corporation although the stockholder shareholder may recover litigation costs.
The suit says the plaintiff Robbins "is and has been an owner of Paramount since prior to the August 2025 Paramount/Skydance combination."
It’s the latest in a stream of legal action as the deal moves forward with regulatory approvals.
A group of Attorneys General led by Rob Bonta of California sued to block the $110 billion deal for antitrust violations and is <a href="https://deadline.com/2026/07/paramount-warner-bros-merger-temporary-restraining-order-1236981542/">seeking a temporary restraining order.</a> The <a href="https://deadline.com/2026/07/wga-sues-over-paramount-warner-bros-discovery-merger-1236982226/">WGA unveiled a lawsuit Tuesday</a>.
A group of Paramount+ subscribers sued earlier this year to block the deal.
“The media has widely reported that Lawrence and David Ellison promised illegal, private benefits to President Trump in exchange for approval of their last media mega-merger.
Specifically, in order to ensure federal regulatory approval of the merger between Ellison-controlled Skydance Media, LLC<br>(“Skydance”) and Paramount, the Ellisons promised President Trump up to $20 million in free advertising and reportedly encouraged Paramount’s prior ownership to settle a frivolous lawsuit the President had filed against CBS (owned by Paramount) in his personal capacity—effectively laundering a $16 million payment to President Trump through the courts,” the suit reads.
“In exchange, President Trump and the Trump-controlled Federal Communications Commission approved the deal with little to no oversight.
The Ellisons also agreed to, and did, transform CBS to make its coverage far more favorable to the President, at the cost of the network’s ratings.”
Paramount has denied any side deal for advertising.
The suit, again citing press reports, claims the Ellisons promised to make sweeping changes to CNN<br>including potentially firing anchors the President dislikes, in exchange for regulatory approval.
“Once they acquire Warner Bros., the Ellisons will also have the opportunity to improperly funnel cash to President Trump by settling litigation he brought against CNN in his personal capacity prior to his reelection.”
“The Ellisons’ actions not only harm the reputations of the news outlets they currently own, which are hemorrhaging viewers, but they are latent liabilities waiting to be triggered by a future administration,” the suit said.
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