New York City Mayor Zohran Mamdani has sharply criticized the proposed merger between Paramount Skydance and Warner Bros. Discovery. His comments followed Paramount's settlement with 12 states that had challenged the deal. Mamdani expressed concerns that the agreement would grant billionaire David Ellison increased control over major media companies, warning of the wider implications of heightened media consolidation.
Mamdani's Criticism of the Merger
Mamdani voiced his disapproval on September 22, the day after Paramount Skydance reached a settlement with California and eleven other states regarding its planned acquisition of Warner Bros. Discovery.
According to The Hollywood Reporter, Mamdani labeled the settlement a "shameful monument to corruption" and a betrayal that "the American people won’t soon forget."
He further argued that the merger could give Ellison undue influence over the media content consumed by Americans. Mamdani stated:
• "America is free only when the media is competitive, independent, and accountable to the people."
• "This merger strikes a chilling blow against that freedom."
Mamdani also acknowledged New York Attorney General Letitia James for the worker protections incorporated into the settlement. James was part of the coalition of 12 state attorneys general who challenged the deal.
The New York Attorney General’s Office reported that the settlement mandates Paramount to:
• Release at least 30 films annually.
• Invest an additional $1.5 billion in domestic film production over five years.
• Establish an independent editorial board for CNN and CBS.
Despite these protections, Mamdani maintained that they did not alter his fundamental view of the broader merger. He reiterated, "This decision is a shameful monument to corruption and a betrayal that the American people won’t soon forget."
Details of the Paramount-Warner Bros. Discovery Merger
Paramount Skydance is pursuing the acquisition of Warner Bros. Discovery in a deal estimated at $110 billion. Reuters reported that the agreement requires Paramount to release:
• At least 30 theatrical films in each of the first two years.
• 32 films in each of the subsequent three years.
The companies also committed to additional investment in U.S. film production. Reuters indicated that Paramount would spend at least $300 million more each year compared to 2025 levels, accumulating to at least $1.5 billion over five years.
The settlement further includes regulations concerning:
• Cable negotiations.
• Studio lots.
• Worker protections.
• Editorial independence at CNN and CBS.
The New York Attorney General’s Office stipulated that Paramount must negotiate fees for Paramount and Warner Bros. cable channels separately. The company also faces financial penalties if it fails to meet specific film production requirements.
Separately, the Writers Guild of America settled its lawsuit against Paramount on September 21. According to the Writers Guild of America, this agreement includes:
• A five-year ban on writer layoffs at CBS News Broadcast.
• A $17.5 million payment to its health fund.
The U.S. Department of Justice had previously concluded its investigation into the proposed merger in June, stating that its findings indicated the transaction was unlikely to harm competition or American consumers.
The Paramount-Warner Bros. Discovery deal has not yet been fully finalized. While the settlement removes a significant legal hurdle, the companies still need to complete the remaining steps for the acquisition to be finalized.
Stay tuned for more updates.
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