According to Variety, the Writers Guild of America has responded to David Ellison’s threats to move Paramount Skydance out of California. A coalition of twelve states led by California Attorney General Rob Bonta brought an antitrust lawsuit against the merger. Ellison stated that he would begin the process of exiting California.
“By threatening to leave the state because it doesn’t want the government to enforce the law, Paramount further proves the danger of its outsized power over the industry and what that will mean for writers and the creative community,” the WGA said in a statement per Variety. “This type of behavior is precisely why the merger should be blocked.”
Both the WGA West and East are co-plaintiffs in the suit against the $110 billion merger. The lawsuit alleges that the merger will affect three key markets: basic cable licensing, wide-release theatrical distribution, and “top-grossing” theatrical distribution. The AG is attempting to prove that the transaction violates the Clayton Act.
Bonta posted to X to share his thoughts on Paramount’s latest action. “In a span of weeks, Paramount agreed to halt the merger until a court decision or until June 2027, asked for a November trial, and is now back with another attempt to blackmail the state into letting an illegal deal through. Paramount has lost the plot as it continues to lose in court. It didn’t work the first time — on the eve of our July lawsuit — and it won’t work this time,” according to Variety.
Paramount recently suffered a defeat in terms of the trial’s start date. The judge sided favorably with the states after setting the start date for March 2nd, 2027. After October 1st, Paramount will owe shareholders a $7 million-a-day ticking fee. When all is said and done, Paramount could owe over a billion dollars to shareholders.
In a New York Times Op-Ed, Ellison made his opinion clear: he does not believe the trial has to do with antitrust but instead the acquisition of CNN. “Great news organizations like CNN and CBS News are here to tell it straight down the middle. That requires newsrooms that reflect the whole world, not one side of it. And it requires independence. Our journalists will continue to answer to the facts and to all the people they serve — not to any party or cause. These were founding principles for both CNN and CBS News, for legends like Ted Turner and Edward R. Murrow, and it is exactly that kind of independence that has always fueled the greatness of ‘60 Minutes,” he wrote per Variety.
Ellison’s takeover of CBS News after acquiring Paramount has been marred by controversy. According to mxdwn, he almost immediately placed controversial figure Bari Weiss in charge as editor-in-chief. Weiss’s tenure has seen the exit of several top journalists, including longtime 60 Minutes correspondent Scott Pelley. Additionally, she decided to hold story on the CECOT prison in El Salvador for further review and editing, a decision many believed to be politically motivated.