The Epic, Mega Skydance Paramount Warner Deal: Some Thoughts
News broke today that Warner Bros. Discovery has decided that Paramount-Skydance’s bid ($111 billion) to acquire the company was higher than Netflix’s bid ($82.7 billion). WBD told Netflix it had four days to increase its supply. A little over an hour later, Netflix said it didn’t need four days. They bowed out. The deal was no longer economical at the price Paramount offered. An additional fact is that Netflix co-CEO Ted Sarandos was at the White House today as these events were unfolding, apparently trying to see if Netflix had what every company needs for a 2026 merger: Donald Trump’s personal approval. Apparently they didn’t have it. This is the playbook for autocracy. And at the federal level, that’s the game we’re playing right now.
We have discussed this agreement several times over the past year. As a site interested in current affairs and the future of democracy, we have focused primarily on the fate of CNN, which is owned by WBD. Today’s events make it very likely that CNN will come under the control of the Ellison family, specifically his “oldest son” David, who has already named Bari Weiss as head of CBS News. This is an oligarchic effort to build a pro-Trump state media giant with the addition of money from Gulf princes and other members of the global autocracy team.
This is likely the end of CNN as we know it, although the outcome may take some time.
At the same time, putting aside the anti-democratic aspects of the deal, it doesn’t look like a great trade deal. It’s essentially a bet on the dying medium of cable. There’s more to WBD than that. But it’s a lot of things. And Paramount-Skydance is also paying a lot of money for it. I feel much better able to judge the democratic aspect of this question than the commercial aspect. But my knowledge of publishing and media, such as it is, makes me skeptical of the business logic. And to the extent that markets pass judgment, they seem to agree. It’s also worth keeping in mind that the Ellisons have no real experience in the media space. And all of this is overseen by Larry Ellison’s idiot son, David. This really feels like Succession, but dumber. With the idea that Donald Trump’s support, which is a valuable asset in forcing mergers on Trump’s terms, will allow the whole thing to function in commercial terms. They seem to be betting big on the longevity of Trumpism. So I don’t assume that they know things that you or I don’t.
Of course, we cannot really put aside the democratic aspects of this issue. CNN being delivered into the mouth of the Trumpist/MAGA beast is a very bad thing for independent media and information. Very bad.
To me this is sad in that while CNN was a true pioneer of digital news, at its peak it was a sort of updated version of a global news service like the BBC once was. But things are changing. Here’s a look at CNN executives trying to put the best face on things and not jump to conclusions. But there’s a good chance that Bari Weiss, or someone working at his behest, will be running the place by the end of the year. And I caution you against thinking – as Trump and the Ellisons seem to do – that you can simply Foxify CNN or other news outlets and the same audience will still watch. We see what happens to CBS. The audience leaves. It’s being driven into the ground. Sad for the legacy of CBS News. But this audience will go elsewhere.
We should be sure that the ability of billionaires and Gulf princes to simply buy up all the media outlets may not be as sound a plan as people seem to think. The audience can move. In our current reality, there is MAGA who wants Fox and the various Trump/State news service channels, and there is the anti-Trump opposition who relies heavily on the actual news sites and channels. I don’t think that will change. Audiences will migrate. So yes, this is a very bad development. A major setback. But the story of free media in the United States is far from over. This is part of the corruption of late Trumpism. This is my point of view.
