Why Paramount went looney tunes for Warner Bros.

Summary

The Indicator from Planet Money

Episode Summary: "Why Paramount went looney tunes for Warner Bros."

Date: March 3, 2026
Hosts: Adrian Ma & Waylon Wong
Guest: Dave Folkenflick, NPR Media Reporter; Matt Staller, American Economic Liberties Project

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Episode Overview

This episode dives into the high-stakes, headline-grabbing story of Paramount Skydance's proposed $110 billion takeover of Warner Bros. Discovery. The hosts unravel the corporate intrigue behind this potential merger, exploring the ambitions of David Ellison, implications for the media landscape, underlying political currents, and an unprecedented legal maneuver that could speed up regulatory approval.

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Key Discussion Points & Insights

1. The Players & Stakes

[00:11–01:05]

• The merger is framed as a classic "enemies to lovers story" with plenty of drama.
• Past speculation had Netflix as a potential bidder, but Warner ultimately accepted Paramount's offer.
• If approved, two legendary Hollywood studios—Paramount and Warner Bros.—would combine, placing CNN and other assets under Ellison's control.
• The deal's outcome could reshape the streaming world (e.g., another rebranding of HBO Max).

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2. Who Is David Ellison?

[02:31–04:42]

• Background: Son of Oracle co-founder Larry Ellison—one of the richest people alive.
• David Ellison first tried acting, with his most notable role a small part in Flyboys (2006).
  • "He had a minor role in a sort of fighter pilot movie... but it was not to be." – Dave Folkenflick (03:58)
• Leveraging his father's wealth, he became a major Hollywood producer (Mission: Impossible, Top Gun), and recently took over Paramount.
• Quote: "David Ellison is the son of Larry Ellison, one of the richest people to walk on the planet...with his father's extraordinary immense wealth, he was able ultimately to become a producer." – Dave Folkenflick (02:53)
• Ellison's ambitions are described as "somewhat old fashioned," aiming to be a "great leading figure of Hollywood."
• Quote: "I think it is a sort of mindset and a passion and a belief set and I can be a great leading figure of Hollywood." – Dave Folkenflick (04:42)

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3. The Scale & Financing of the Deal

[04:50–06:04]

• Warner Bros. is five times bigger than Paramount; this deal would catapult Ellison into the top ranks of media moguls.
• Larry Ellison is personally backing the acquisition with vast sums from his own trust.
• The deal also involves foreign investors, notably from Saudi Arabia and the Emirates, raising additional scrutiny.
• Layered interests include Oracle (software) and TikTok (social media), tying the Ellison family to vast data and consumer information.
  • "These are all about data and consumer habits online." – Dave Folkenflick (06:04)

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4. Political & Ideological Underpinnings

[06:04–06:42]

• The merger brings ideological tension: Warner owns CNN, a frequent target of President Trump.
• Larry Ellison is an advisor and friend to Trump.
  • "Trump has made clear any number of times how much he loathes CNN." – Dave Folkenflick (06:13)
• The Ellisons reportedly align with Trump, possibly hoping for a favorable regulatory climate, but there's internal anxiety at CNN about potential job cuts and editorial changes.

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5. Regulatory Maneuvering — The "Nerdy" Legal Twist

[06:42–08:56]

• Paramount took a bold, highly unusual step in the regulatory process by preemptively supplying required merger documentation—known as the "second request"—to the DOJ, even before winning its Warner bid.
  • "Paramount did something that is astonishing...they completed the second request before they even won the bid for Warner." – Matt Staller (08:01)
• This could dramatically accelerate U.S. approval, possibly outpacing challenges from Democratic state enforcers or federal antitrust authorities.
  • "They want to close it really quickly so...state level enforcers who are Democrats, can't bring a challenge in time to stop the closing." – Matt Staller (08:30)
• The move signals confidence that the Trump administration won’t oppose the merger.

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6. Political & Legal Hurdles Ahead

[08:56–09:43]

• California's Democratic attorney general announced an open investigation.
• Democratic lawmakers like Elizabeth Warren and Chris Murphy have voiced concerns.
• The deal also requires European regulatory and Warner Bros. shareholder approval.
• Paramount targets a shareholder vote in the spring and aims to close by September.

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Notable Quotes & Memorable Moments

• "There was a time in this saga when it looked like Netflix would emerge victorious...then last week, Netflix was out. Warner Bros. accepted Paramount's bid." – Adrian Ma (00:31)
• "David Ellison is the son of Larry Ellison, one of the richest people to walk on the planet." – Dave Folkenflick (02:53)
• "[David Ellison] had a minor role in a sort of fighter pilot movie. I'm trying to remember what it was called..." – Dave Folkenflick (03:58)
• "Paramount did something that is astonishing...they completed the second request before they even won the bid for Warner." – Matt Staller (08:01)
• "They want to close it really quickly so that the other potential entities that might challenge it...can't bring a challenge in time to stop the closing." – Matt Staller (08:30)
• "Trump has made clear any number of times how much he loathes CNN." – Dave Folkenflick (06:13)

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Important Timestamps

• 00:11 – High-stakes drama & the merger's outline
• 02:53 – David Ellison's Hollywood ascent & background
• 04:42 – Ellison's ambitions and personality
• 05:10 – The immense scale & financing of the deal
• 06:13 – Political implications: Trump, CNN, and Ellison ties
• 07:18 – Antitrust process explained
• 08:01 – Paramount's unprecedented legal maneuver
• 08:56 – State and federal pushback, upcoming votes

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Conclusion

This episode delivers an incisive overview of the proposed Paramount-Warner Bros. merger, spotlighting the financial, political, and regulatory machinations at play. With sharp analysis and insider details, listeners are taken behind the scenes of a media mega-deal poised to redefine the Hollywood landscape—if it can pass through a thicket of legal and political challenges.

Transcript

[Dave Folkenflick]

Npr.

[Waylon Wong]

It is a high stakes enemies to lovers story with enough political and corporate intrigue to satisfy the most discerning of drama fans. And it's not over yet. We are of course talking about paramount Skydance's proposed $110 billion takeover of Warner Bros. Discovery.

[Adrian Ma]

There was a time in this saga when it looked like Netflix would emerge victorious. Warner Brothers kept rebuffing Paramount's offers and then last week, Netflix was out. Warner Bros. Accepted Paramount's bid. This is the indicator for Planet Money. I'm Adrian Ma.

[Waylon Wong]

And I'm Waylon Wong. If the deal goes through, two legendary Hollywood studios would merge. CNN would be in the hands of Paramount CEO David Ellison, the son of a tech billionaire and an ally of President Donald Trump. And the HBO Max streaming service would probably get renamed again.

[Adrian Ma]

So today on the show, we break down the basics of this Hollywood corporate marriage. Who is David Ellison? What does he want? And how might this deal reshape our polarized media landscape?

[Waylon Wong]

Plus, we learn about a unique maneuver that Paramount is using to try and gain speedy government approval in the U.S.

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[Waylon Wong]

Today we are bringing on a marquee name to help walk us through the Paramount Warner Bros. Deal.

[Dave Folkenflick]

I'm Dave Folkenflick. I cover the media for npr.

[Waylon Wong]

Hi, Dave. You're having a very busy few weeks here.

[Dave Folkenflick]

Why? Anything come up?

[Waylon Wong]

I don't know. Why are we here? Dave has been busy writing about another David. David Ellison, Chairman and CEO of Paramount Skydance. Can you give us the TV Guide capsule summary of what we need to know about Mr. David Ellison?

[Matt Staller]

Sure.

[Dave Folkenflick]

And TV Guide's not a bad place to go for it because he's somebody who's fascinated with all things Hollywood. David Ellison is the son of Larry Ellison, one of the richest people to walk on the planet. Larry Ellison was the co founder of the software titan Oracle, which provides much of the digital backbone for the nation's commerce and government. David Ellison as a young man wanted to become an actor. It didn't pan out and he started being interested in developing movies. And over time, with his ambition, but also definitely with his father's extraordinary immense wealth, he was able ultimately to become a producer. And he helped being one of the lead producers of the Mission Impossible franchise and Top Gun. And he put himself in place just a year ago with his father's financial backing to take over Paramount, which was the best known as the parent company of cbs, Paramount Studios, Paramount plus and also cable channels like Comedy Central and Nickelodeon.

[Waylon Wong]

What was his most famous IMDb acting credit before he got involved in the production?

[Dave Folkenflick]

Oh, I knew you were gonna ask me this. He had a minor role in a sort of fighter pilot movie. I'm trying to remember what it was called, but it was not to be. I don't think there were casting directors who looked at and said that's the guy I want in my film.

[Waylon Wong]

That fighter pilot movie, by the way, is a World War I film called Flyboys. It came out in 2006. David Ellison pops up briefly in the trailer providing some comic relief as an American soldier.

[Dave Folkenflick]

The Germans are moving toward Harrison Cassidy. Will be your squadron leader. Any questions?

[Sponsor/Ad Voice]

Will we be back by lunch?

[Waylon Wong]

And if that movie sounds like an old fashioned Hollywood project, well, Dave says David Ellison has somewhat old fashioned ambitions.

[Dave Folkenflick]

I think it is a sort of mindset and a passion and a belief set and I can be a great leading figure of Hollywood.

[Waylon Wong]

The goal here is scale, to be a huge player. Warner Brothers currently has five times the market value of Paramount. So acquiring Warner expands David Ellison's dominion to include not just a mega movie studio, but also cable networks and other properties. And he needed his father Larry Ellison's money to get there.

[Dave Folkenflick]

Larry Ellison came forward and said, listen, I'm going to put extra, you know, tens of billions of dollars backed up by my personal trust so that you know that this money is there. There still are foreign investors, including sovereign wealth fund of Saudi Arabia, including an Emirate investment fund. And these have complicated questions that attach to them as well. Let's not forget also that Larry Ellison is sort of a lead investor in TikTok US. David Ellison will in a very short amount of time have gone from his little boutique studio to potentially, if regulators approve this, Skydance, Paramount and Warner together. But also layered over that, although it's separately held, are Ellison's other major stakes in the software giant of Oracle and in the social media giant of TikTok. And these are not incidental interests. These are all about data and consumer habits online.

[Waylon Wong]

Dave tells us there's also an ideological component to this deal. Warner Brothers owns cnn, a network that President Trump has repeatedly attacked.

[Dave Folkenflick]

The Ellison's father and son, particularly Larry Ellison. The father is an advisor and a friend of President Trump. Trump has made clear any number of times how much he loathes cnn. The Ellison's need the Trump administration not to intercede in court and try to block this takeover. Warner Brothers discovery. And they are allied with him or at least are for the time being. And so that's the fear you're also hearing within cnn. They're fearful what's ahead. They believe there'll be job cuts and they think they could be targeted if they were to be named publicly.

[Waylon Wong]

There could be job cuts in other parts of the new megacorporation too if regulators approved the deal. And Paramount took an unusual step in trying to get the green light from antitrust authorities. That's according to Matt Staller. He's research director at the American Economic Liberties Project. It's a nonprofit that opposes corporate monopolies. And here's how Matt describes antitrust law in the US if you're looking at

[Matt Staller]

a company and you're saying those companies are too powerful, you're basically right. And then it's about figuring out the relevant nerds to come to explain to an out of touch judge why that's why that's true.

[Waylon Wong]

The antitrust approval process has lots of nerdy details and one of them is something called the Hart Scott Rodino process. It's where companies involved in large mergers submit information to the government even before a deal is finalized.

[Matt Staller]

You have to tell the government if, hey, we merge and you have to give the government a bunch of information and then the government has 30 days to look at that information. And if they want more, they can ask you for more in what's called the second request.

[Waylon Wong]

Matt says compiling all the documentation for this second request can take between 12 and 18 months. Then the government has 30 days to review the new information and decide whether to bring an antitrust case or let the merger happen.

[Matt Staller]

Paramount did something that is astonishing, or at least what I was told from experienced lawyers is astonishing, which is that they completed the second request before they even won the bid for Warner Paramount

[Waylon Wong]

said it had, quote, substantially complied with the second request back on February 9th. That's almost a month ago. It means that it already sent over extensive documentation to the Justice Department, paperwork that Matt says can take over a year to pull together.

[Matt Staller]

At least to me, it indicates that they feel very confident that the Trump administration is not going to challenge this merger no matter what they find. And they want to close it really quickly so that the other potential entities that might challenge it, which is to say state level enforcers who are Democrats, can't bring a challenge in time to stop the closing. It's a very savvy political move. It's very insidery. It's very it's kind of nerd stuff. But, but it does matter.

[Waylon Wong]

And in fact, some politicians are already speaking up. The Democratic attorney general in California, which is of course home to Hollywood, said last week that his department has an open investigation of the deal. Democratic lawmakers like Elizabeth Warren of Massachusetts and Chris Murphy of Connecticut have also expressed grievances. The deal also needs approval from European regulators and Warner Brothers shareholders. On Monday, Paramount said it expects that vote to happen in the spring, with the deal closing by the end of September. This episode was produced by Julia Richie with engineering by Robert Rodriguez. It was fact checked by Sierra Juarez. Kicking Cannon is our show's editor, and the indicator is a production of npr.

[Sponsor/Ad Voice]

Will we be back by lunch when

[Dave Folkenflick]

the Idaho Legislature is in session? Decisions can move fast. The Connector breaks it down every weekday with clear local reporting and the context you need to understand what's happening and why it matters. That's the Connector Idaho Daily News from Boise State Public Radio, part of the NPR Network.

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