While the DGA and IATSE unions kiss Paramount‘s ass and call for a settlement between Paramount and a dozen state attorneys general in their antitrust lawsuit, the Teamster Local 399 is taking another route. Paramount is currently attempting to purchase Warner Bros. Discovery for $110 billion.
Lindsay Dougherty has released a statement to Deadline that it’s time to cut the crap.
At every step of the way, Teamsters have asked for data to show how this merger would be good for our industry, our members and domestic production. Touting worker prosperity, without commitments, while simultaneously threatening their livelihood in the press as a bargaining chip begs the question — what is in this deal for American film and television workers?
The Teamsters had previously called on the Department of Justice to block the merger. Trump’s Department of Justice approved the deal. David and Larry Ellison have been accused of supporting and being friends with Trump which resulted in the acquisition to receive little scrutiny and is reported to have ignored government lawyers who were going to recommend a challenge to the deal.
The deal at $110 billion (currently, more on that later) and heavy debt by Ellison will force the company to make cuts quickly and will likely result in massive layoffs. After the purchase of Fox by Disney, the House of Mouse laid off thousands of workers. Paramount will have to do the same, if not worse, if this deal goes through.
Paramount CEO David Ellison has promised theater owners the combined mega-studio would release 30 films a year, and has assured CNN would have editorial independence. They’ve recently said everything is on the table in hopes to settle the lawsuit from the attorneys general. Paramount’s Chief Legal Officer Makan Delrahim has stated they’re willing to work towards a resolution and there have been rumors that includes selling CNN, though having an oversight board has also been floated. Ellison has threatened to pull the company from California if the antitrust lawsuit continues.
With a trial not set for March 2027, Paramount is scrambling to cut a deal beforehand. Each day beyond September 30, the price of the deal increases $7 million a day. With a promise to put the deal on hold until June 2027 or the conclusion of the trial, the $110 billion deal could increase by about $1.3 billion.
That increasing price is only one factor as to why the deal might be in jeopardy. David Ellison’s father Larry Ellison, the founder of Oracle, has backed a large portion of the deal with about 49% of it being financed by foreign entities. Larry’s wealth is tied heavily into Oracle stock which has been volatile due to questions regarding its investment in data center infrastructure and whose fortune now relies heavily on AI succeeding. With the belief of an AI bubble growing, it’s very likely Ellison’s fortune could tumble quickly and soon. The longer the deal drags out, the more the risk increases for Ellison in the bubble popping and the deal collapsing resulting in a $7 billion payout to Warner Bros. Discovery for the deal ending.
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Source: Graphic Policy
