System Fails Workers and Consumers Again as Judge gives the green light for Paramount’s acquisition of Warner Bros. Discovery – Graphic Policy

The system has failed to protect consumers and workers once again, as the mega merger between Paramount and Warner Bros. Discovery has been approved by the court. In September a dozen Attorneys General announced a settlement with Paramount over the deal. The Attorneys General sued citing antitrust issues. After threats by Paramount’s David Ellison that he’d move the company out of California, the state’s politicians blinked in the game of chicken and quickly lost their spines.

The deal actually does little to protect consumers and will lead to tens of thousands of individuals being laid off as well as decreasing competition. It also consolidates the media further in the hands of rightwing oligarchs who are chummy with President Trump. The deal is riddled with loopholes and only lasts for five years, a time frame it’d take to really consolidate the two companies.

U.S. District Judge Araceli Martínez-Olguin wrote:

The Court finds the proposed consent decree represents a reasonable factual and legal resolution of the dispute. The parties’ proposed consent decree falls within the scope of the case made by the pleadings.

The Court recognizes that this proposed consent decree reflects a compromise of the claims short of full adjudication – compromise that may leave some dissatisfaction for both sides and the public but a compromise that saves the risk, time, and expense of litigating through trial.

The approval of the settlement was delayed by last minute actions by numerous organizations. The parties involved in the settlement were ordered to respond to those last minute attempts to stop the deal.

Paramount CEO David Ellison said it would be about two weeks to formally combine the companies. A ticking fee that increases the price of the $111 billion deal by $7 million a day begins on October 1 and continues until the deal is closed.

Paramount is still desperate to fund the deal with many questions still remaining in how it’ll be paid for. The Ellison’s networth has been dropping as it’s tied to Oracle and AI and the Saudi government whose sovereign wealth fund is involved is hurting due to the current war between the US/Israel and Iran. Paramount has said it’d try to raise $44 billion of the cost through a debt sale to investors. Elon Musk has been rumored to be one of those.

California Governor Gavin Newsom pushed for a settlement as he still attempts to run for President in 2028. This should kill any chance he had of that, which was slim to start. His advocating for it again sides him with billionaire oligarchs and big business instead of the general American public. He again shows he’s a Republican wolf in Democratic sheep clothing. There’s a chance it kills Bonta’s future, though he’s likely hitching it to Newsom hoping to land a role in his never going to happen Presidency. The other AGs will be facing questions about their approval of the deal and how they can claim they’re pro-consumer or pro-worker protections.

There’s little chance the deal won’t result in the firing of tens of thousands of workers and Ellison will be forced to shut down underperforming divisions, channels, and sell of assets to deal with the massive debt raised by the deal plus the debt that already exists for the two companies.

Remember kids, if you’re an oligarch who throws enough of a fit, you’ll get your way…

Source: Graphic Policy