The long awaited merger between Paramount Skydance (NASDAQ:PSKY) and Warner Bros. Discovery (NASDAQ:WBD) is here with the combined company now known as Skydance (NYSE:SKYD) and trading on the New York Stock Exchange. One of the key initial questions on the combined company is the role that politics play into journalism.
Trump Congratulates Deal
The merger, which was supported by the Trump administration from the start, is drawing praise from President Donald Trump.
"I’m happy about that. That’s great," Trump told reporters Tuesday at the White House, as reported by Variety.
For a merger that upset members of Congress and attorneys general over the president’s relationship with the deal’s major backers, this may not be the glowing review Chairman and CEO David Ellison is hoping for.
"It’s gonna be a great company. They’re terrific people, and it’s gonna be a great company. That’s a great merger. I’m glad they let it go," Trump added.
Ellison Distances Company from Politics
Among the first questions Ellison faced after the merger was completed was about the ties he and his father, Larry Ellison, who helped finance the merger, have to the Trump administration.
"I believe deeply in journalism," Ellison said Tuesday, as reported by CNN.
Ellison called CBS News and CNN "a vital part of our democracy."
The Skydance CEO also said he supports CNN’s lawsuit against the White House to overturn a ban on the news outlet.
"We have a good relationship with this administration. We also had a good relationship with the Biden administration," Ellison told reporters Tuesday, as reported by The Hollywood Reporter.
Ellison stressed the importance of media talking to people on "both sides of the aisle."
"We don’t want to politicize."
Ellison’s comments come months after throwing a dinner party in April to honor Trump and the First Amendment. David also attended the state dinner in September at the White House, which honored Chinese President Xi Jinping.
Several lawsuits have been filed over the merger, including one alleging the Ellisons made an "illegal" deal with Trump to get approval for the merger, in exchange for funneling cash to the president and getting rid of news anchors Trump dislikes on CNN or CBS.
Trump’s Early Support of the Deal
In the early bidding for Warner Bros., which also included Netflix trying to buy the media company, the Trump administration threw its public support in favor of the Ellisons and Paramount Skydance.
“Who owns Warner Bros. Discovery is very important to the administration,” a senior Trump administration official told the New York Post. “The Warner board needs to think very seriously not just on the price competition but which player in the suitor pool has been successful getting a deal done.”
The official then named the administration’s preferred bidder: Paramount Skydance, which completed its merger in August after winning approval from the Federal Communications Commission.
“And that points to the Ellisons,” the official said. “Warner really needs to think really hard about the odds of success getting the deal cleared with players outside of Paramount Skydance.”
The remarks suggested other potential bidders, such as Netflix and Comcast, may have faced a tougher regulatory review if they pursued all or part of Warner Bros. Discovery.
Paramount previously paid a $16 million settlement to President Trump over a lawsuit against the company’s “60 Minutes” program. The company’s CBS division has since emphasized ending what it calls left-wing bias.
Image via Shutterstock
Login to comment