Paramount alleges that antisemitism is part of WBD merger opposition
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Larry and David Ellison. Photo illustration: Brendan Lynch/Axios. Photos: Chris Kleponis and Michael Nagle/Bloomberg via Getty Images
Paramount Skydance executives believe that antisemitism is playing a role in opposition to the company's proposed $111 billion takeover of Warner Bros. Discovery, which still faces possible challenges from state AGs and European regulators.
- DOJ signed off on the deal last week, reportedly before career antitrust staffers had an opportunity to object.
The big picture: Debate over this merger has become more about personalities than policies, which is unusual.
Zoom in: Paramount CEO David Ellison has rubbed much of Hollywood the wrong way by cozying up to President Trump. The same goes for his father Larry, a major Trump donor who's helping to finance the WBD takeover.
- Some of this is standard California politics, but more relates to changes Ellison has made at CBS, including with 60 Minutes, which has created concerns about the future of CNN.
- Plus the Colbert cancelation, which technically predated Ellison but came just weeks before he acquired the network.
Behind the scenes: Makan Delrahim is Paramount's chief legal officer and led the DOJ's antitrust division during Trump's first term. In a recent LA Times interview, he said:
- "There's a lot of fear-mongering ... They are running a political campaign. Some of these people are trying to inflict harm on this transaction really because of their own antisemitic views."
- Delrahim's view is shared by others at Paramount, who argue the Ellisons' Judaism and close ties to Israeli President Bibi Netanyahu are a reason for why this merger is getting more pushback than have other studio deals.
- They point to a "Free Palestine" comment, and subsequent applause, made during a recent anti-merger event, plus how some anti-merger advocates have been critical of Israel. They also insist that some rhetoric has crossed from anti-Zionism into antisemitism — they are arguably different things — although that's obviously a matter of opinion.
- "I can't quantify it, but there seems to be an antisemitic component within the opposition," says Jon Leibowitz, an FTC chairman under President Obama who now is advising Paramount.
- One source does concede, however, that Paramount likely would be in a similar spot if the Ellisons were atheists but still tight with Trump.
Zoom out: No one at Paramount is arguing that state AGs, in California or elsewhere, are being driven by antisemitism. If lawsuits come, they'll likely be based in antitrust arguments around consolidation's impact on labor.
- Instead, they argue that the AGs are being pushed by a groundswell that is driven by animus for the Ellisons.
The bottom line: Paramount's case is much stronger on politics than religion, but both are more about the players than the game.
