Paramount CEO Declines Senate Invitation for Antitrust Hearing on Warner Bros. Merger
David Ellison, the chief executive of Paramount Skydance Corp., has turned down an invitation to testify before a United States Senate panel regarding the proposed merger between Netflix Inc. and Warner Bros. Discovery Inc. The hearing, scheduled for Tuesday, will feature executives from Netflix and Warner Bros. defending their US$82.7 billion streaming media deal.
Ellison's Reasoning and Alternative Offer
According to sources familiar with the arrangements, Ellison declined the invitation from Democrats on the Senate Judiciary Committee, stating that he did not believe his appearance would be helpful. He expressed his view that the Netflix-Warner Bros. deal is anti-competitive on its face, while a potential tie-up involving Paramount falls below antitrust thresholds.
Ellison offered to provide written testimony and appear before the panel if the Netflix deal does not proceed and Paramount's offer moves forward. He is currently in Washington, DC, on other business, as confirmed by a Paramount spokesperson.
Background of the Corporate Battle
Ellison, along with his father Larry Ellison, co-founder of Oracle Corp., has launched a hostile tender offer for Warner Bros. This offer includes a personal guarantee of over US$40 billion in funding. Paramount has been actively lobbying governments in the U.S. and Europe to support its bid, with Ellison meeting UK Culture Secretary Lisa Nandy and his team engaging with French President Emmanuel Macron.
Despite these efforts, Warner Bros. has consistently rejected Paramount's advances since choosing Netflix in early December. Paramount has also sued Warner Bros. for more details on the valuation of the Netflix transaction.
Key Points of the Senate Hearing
The Senate antitrust hearing is a critical moment in the ongoing media consolidation saga. Key aspects include:
- Netflix and Warner Bros. executives will defend their merger before the Senate panel.
- Ellison's absence highlights the contentious nature of the competing offers.
- The hearing focuses on antitrust concerns in the rapidly evolving streaming industry.
This development underscores the high-stakes corporate maneuvering in the media sector, with significant implications for competition and consumer choice in streaming services.
