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Senate Dems Want Ellison's Answers on Paramount/WBD, Trump Influence

Eight senators are looking for answers (and documents) from David Ellison regarding Paramount Skydance/Warner Bros. Discovery and Trump.

As the timer ticks on Warner Bros. Discovery's (WBD) reopened talks with David Ellison's Paramount Skydance, Ellison is being asked to answer some questions about his efforts to scuttle Netflix's standing agreement with WBD, and any potential influence the Trump Administration may have had or currently has in the dealings. In the letter sent by Sen. Cory Booker (D-N.J.), Democratic Leader Chuck Schumer (D-N.Y.), Minority Whip Dick Durbin (D-Ill.), and Sens. Amy Klobuchar (D-Minn.), Elizabeth Warren (D-Mass.), Richard Blumenthal (D-Conn.), Mazie Hirono (D-Hawaii), and Peter Welch (D-Vt.), are asking that Ellison's company "preserve all records related to the proposed Paramount-Warner Bros. Discovery transaction" and answer a series of questions related to the ongoing negotiations.

Earlier this month, Netflix CEO Ted Sarandos and Warner Bros. Discovery chief revenue and strategy officer Bruce Campbell testified before the Senate Judiciary Committee Subcommittee on Antitrust, Competition Policy and Consumer Rights. Ellison declined an invitation to appear, noting that his company was (at the time) not in the running for WBD. As we noted in an editorial earlier this month, one aspect of Paramount Skydance's revised hostile bid offer was the assurance that a Paramount Skydance-WBD merger could pass government regulatory approval by the end of this year. Paramount Skydance sweetened its offer for WBD by including a $0.25-per-share "ticking fee" paid to WBD shareholders for each quarter a deal between Paramount and WBD hasn't closed after December 31, 2026 (meaning Paramount would pay WBD shareholders approximately $650 million in cash value for every quarter the deal isn't finalized).

"The announcement expressed strong confidence that Paramount will secure 'the necessary clearances quickly and efficiently' because, in its estimation, the acquisition does not 'raise any competition concerns,'" the letter reads. "However, we can assure you that it raises significant competition concerns that the Senate has not had an opportunity to examine. The pattern of evasion, combined with Paramount's apparent confidence that a politically sensitive transaction will clear without difficulty, warrants serious scrutiny." Here's a look at the documents that the senators noted must be preserved, followed by examples of the questions being asked (with Feb. 26th noted as the date that a response from Ellison is expected by):

1. All communications, information, and documents related to Paramount's proposed acquisition of Warner Bros. Discovery and the DOJ's Second Request for Information, including communications with President Donald Trump, members of his family, or individuals associated or affiliated with President Trump; Administration officials, including White House and DOJ political appointees; and DOJ Antitrust Division officials.
2. All communications, information, and documents related to lobbyists or other intermediaries retained to represent Paramount or who otherwise advocated on behalf of Paramount in connection with the proposed transaction, including any currently or formerly affiliated with the Trump Administration or any business associated with President Trump or members of his family.
3. All communications, information, and documents related to donations and other contributions made, directly or indirectly, to President Trump, his causes or interests, including through political action committees and other outside organizations.
4. All communications, information, documents, and any other records related to news and content decisions at CBS that reflect real or perceived influence by any member of the Trump Administration or any of the lobbyists or other agents involved with the proposed transaction, including any records that reflect concern or awareness of how those decisions might be perceived by any member of the Trump Administration.

And here's a look at three of the questions asked/requests made by the senators in their letter to Ellison:

• Did you, or anyone acting on your behalf or on behalf of Paramount, ever suggest, communicate, or offer assurances to President Trump, or anyone acting on his behalf, that Paramount would make changes to CNN in connection with or in exchange for favorable treatment of the proposed acquisition of Warner Bros. Discovery? Please describe the individuals involved, and the nature, date, and substance of any such communications.
• Did you, or anyone acting on your behalf or on behalf of Paramount, ever communicate with President Trump or any Administration official about Paramount's $16 million settlement of a lawsuit related to a "60 Minutes" interview of then-Vice President and presidential candidate Kamala Harris, in connection with discussions about the proposed acquisition of Warner Bros. Discovery?
• Please provide the dates on which you, or anyone acting on your behalf or on behalf of Paramount, visited the White House to meet with President Trump or members of his Administration, and the purpose of each visit.

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