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California AG Accuses Paramount CEO of Blackmail Over $110B Merger

8/12/2026

Summary

Bonta Accuses

California Attorney General Rob Bonta accused Paramount CEO David Ellison of blackmailing the state over settlement talks.
Ellison warned Paramount could relocate on Oct. 1, eyeing Georgia, Texas or Tennessee.
A 12-state lawsuit claims the $110 billion merger with Warner Bros. Discovery would reduce competition.
Bonta said if the deal stays unclosed after Sept. 30 Paramount must pay a $7 million-per-day ticking fee, a $7 billion termination fee, and face trial in March 2027.

Summary

Paramount Secures Funding

Paramount secured $24 billion from the sovereign wealth funds of Saudi Arabia, Qatar and the United Arab Emirates, which will own 38.5% but have no board seats or voting rights.
Oracle founder Larry Ellison guaranteed $46.7 billion toward financing the $110 billion merger.
The combined company will cut thousands of jobs from Paramount Skydance’s 2025 workforce of about 17,600 and relocate most studio functions out of California to Georgia, Texas and Tennessee.

History

Historical Context

Disney’s 1995 $19 billion purchase of Capital Cities/ABC, approved by the FTC after a pledge to keep ABC News, created the nation’s largest media conglomerate and gave Disney a 31 percent national TV reach. The deal built on Capital Cities’ 1985 $3.5 billion acquisition of ABC and the 1994 broadcast-affiliation realignment that left ABC scrambling for affiliates.

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Bonta Accuses

California Attorney General Rob Bonta accused Paramount CEO David Ellison of blackmailing the state over settlement talks.
Ellison warned Paramount could relocate on Oct. 1, eyeing Georgia, Texas or Tennessee.
A 12-state lawsuit claims the $110 billion merger with Warner Bros. Discovery would reduce competition.
Bonta said if the deal stays unclosed after Sept. 30 Paramount must pay a $7 million-per-day ticking fee, a $7 billion termination fee, and face trial in March 2027.

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