Paramount Skydance Corp (NASDAQ:PSKY) CEO David Ellison is pushing back against the antitrust lawsuits threatening his company's merger with Warner Bros. Discovery Inc. (NASDAQ:WBD). In an op-ed published Tuesday in the New York Times, Ellison argued the real issue isn't competition—it's whether he can be trusted with CNN.
"I believe this fight is not really about market share… The issue is whether I can be trusted as a steward of Warner's CNN," Ellison wrote.
Ellison dismissed speculation about his politics and intentions, noting he has voted for candidates from both parties and holds a mix of conservative and liberal views. He emphasized he does not intend to shape newsroom coverage based on his personal beliefs, insisting that news should be "independent" and grounded in facts and truth.
"Our journalists will continue to answer to the facts and to all the people they serve — not to any party or cause," he said.
Ellison's Vision for Hollywood Revival
The CEO framed the proposed Paramount-Warner merger as a way to strengthen the movie and TV business at a time when Hollywood is struggling against technology platforms and declining production, particularly in California. He highlighted Paramount's recent expansion, doubling its theatrical slate from eight to 15 films, greenlighting 40 new or returning Paramount+ series, planning 90 TV series in 2026, and increasing content spending by $1.5 billion before the merger.
Looking ahead, the combined company aims to produce 30 theatrical films and 170 TV series annually, investing more than $30 billion in content each year. While acknowledging that no studio can guarantee blockbuster hits, Ellison promises a greater volume of creative work and investment in the entertainment industry.
"Hollywood's story can have a happy ending only when we connect with our audience," he said.
During the company's second-quarter earnings call, Ellison said he is "highly confident" the deal with Warner Bros. Discovery will close, adding that the merger would strengthen the company's streaming and content business, making it better positioned to compete with larger rivals like Netflix Inc. (NASDAQ:NFLX) and Amazon.com Inc. (NASDAQ:AMZN).
Merger Trial Delay Raises Stakes
Ellison's remarks come as a federal judge on Tuesday scheduled the antitrust trial over Paramount's proposed acquisition of Warner Bros. Discovery for March 2, 2027, delaying the merger by at least seven months.
The lawsuits, filed by a coalition of state attorneys general and the Writers Guild of America, seek to block the deal. The delay is expected to be costly, as Paramount would owe WBD shareholders about $7 million per day after Sept. 30 if the merger remains unfinished, potentially exceeding $1 billion in ticking fees before a ruling is issued.
In an earnings call, Ellison said the company is "absolutely open to finding a solution out of court, but we also really believe that we'll win at trial." He added, "There's nothing at risk."
Mixed Results for Paramount
On Tuesday, Paramount Skydance reported mixed second-quarter results, with revenue rising 1% year-over-year to $6.91 billion, beating estimates, while profit missed analyst expectations at $41 million, or 4 cents per share.
Streaming revenue increased 9% to nearly $2.5 billion, driven by strong subscriber growth from Dutton Ranch, sporting events including UFC Freedom 250 and the FIFA World Cup, helping Paramount+ add 2 million subscribers to reach 81.6 million.
Meanwhile, Studio revenue totaled $1.3 billion, supported by higher third-party sales and content licensing, though a weaker theatrical lineup led by Jackass: Best and Last trailed last year's Mission: Impossible — The Final Reckoning.
Price Action: Paramount shares closed at $8.38 on Tuesday, up 1.95%, according to market data. On a year-to-date basis, it declined 36.42%.
