r/MediaMergers

The original version of what The Wrap posted.

Full text:

"Earlier this month, David Ellison addressed investors on Paramount's quarterly earnings call, in which he reiterated his talking points regarding the company's proposed acquisition of Warner Bros. Discovery. During his remarks, the 43-year-old said again that the media conglomerate believes it is on track to clear the requisite regulatory hurdles and close its mammoth Warners deal by September—meaning it would avoid the "ticking fee" it will owe shareholders if the deal drags on beyond that month.

Behind the scenes at Paramount, however, the company has embraced a much more aggressive timeline, Status has learned. Indeed, according to multiple people familiar with the matter, Paramount actually hopes to consummate the deal by July. To be more specific, I'm told it has been targeting July 15 as the date in which it would like to have the deal finalized.

A Paramount spokesperson declined to comment.

The internal timeline, which has not been previously reported, is far more ambitious than Paramount has publicly telegraphed—handing Paramount control of Warners in under 60 days and potentially helping Ellison & Co. outrun the mounting legal and political challenges threatening to derail the marriage of two Hollywood studios. The deal would also, of course, unite CBS News and CNN, handing Ellison even more control of the news media.

"Speed is their friend," a veteran media executive who has observed such deals before told Status. "Time is their enemy."

To be certain, the longer it takes for Paramount to complete its takeover of Warners, the more likely the entire deal could be imperiled by growing resistance from Hollywood, Capitol Hill, and elsewhere.

State attorneys general, led by California Attorney General Rob Bonta, are actively probing whether or not to file a lawsuit that could potentially block the merger. In Hollywood, more than 5,000 actors, producers, directors, and others have signed a petition calling for regulators to block the deal. And in Congress, Democrats are voicing strong concerns, demanding Ellison appear before them to answer questions about the impacts it could have on the media landscape.

While Paramount might be targeting July 15 internally as a close date, there certainly is no guarantee that it will get the deal across the finish line by then. All mergers of this magnitude present significant complications and this one, in particular, raises a number of troubling issues.

One person familiar with the situation cautioned that while the hope is July, a September closing date remains more realistic.

That said, Ellison and Paramount have gone far out of their way to ingratiate Donald Trump and his administration, including last month hosting a pre-White House Correspondents' Dinner "honoring" his White House on First Amendment grounds—a preposterous event nakedly designed to grease the wheels of the federal government for the regulatory hurdles to be cleared.

Trump has also cheered on Ellison's takeover of Warners, most notably being focused on the fact that Ellison would gain control of CNN as part of the deal. In December, Trump declared that any Warners deal needed to include a shakeup of CNN's leadership, blasting current management. The Wall Street Journal also reported in December that Ellison assured Trump he would make sweeping changes to CNN. And Ellison in December said on CNBC that he had "great conversations with the president" about CNN.

All of which is to say, Ellison has Trump—and thus the federal government—in his corner. The real threat comes from state attorneys general, almost certainly the reason Paramount is racing to close before they can mount a coordinated challenge."

Paywall removed:https://archive.ph/2aYEJ

Oh no.

Non-paywall

Peanuts franchise is now officially part of Sony after being acquired from WildBrain last year.