Investors Using Shareholder Power to Challenge Corrupt Paramount Deal

A pair of press organizations are using their power as shareholders of media giant Paramount to demand that its owners David and Larry Ellison produce records related to two recent acquisitions: Skydance’s acquisition of Paramount, and Paramount Skydance’s proposed acquisition of Warner Bros. Discovery. The records could shed light upon whether the executives traded favors with the Trump administration to get approval for the deals.

Using Delaware General Corporation Law Section 220, Reporters Without Borders and Freedom of the Press Foundation say in a communication with Paramount that they have the right to inspect the company’s books and records, to determine whether “executives may have breached their fiduciary duties or otherwise committed misconduct.” 

Paramount’s takeover of Warner Bros. Discovery was already facing serious regulatory challenges before this action. California Attorney General Rob Bonta said in a conference call Monday that “there are red flags everywhere” with the deal and that he may file an antitrust lawsuit against it in conjunction with other states. More than 5,000 marquee-name actors and other entertainment industry players have signed an open letter opposing the merger.

Critics have labeled the deals a catastrophe for unbiased journalism and a prelude to massive layoffs. The two shareholder groups are particularly concerned with the ethical compromises made to flatter and even enrich Donald Trump and subsequently get the deals past federal antitrust regulators.