Yes! It’s the sort of weekend when you get two back-to-back BlockTheIllegalMerger posts. Wild! Let’s go!
1
Do you need a catch-up of where the whole thing is now at?
The LA Times has a decent overview. Yeah, go figure, the LA Times!
The main thing is of course the State AGs lawsuit. And why did they file the suit you ask?
“Trump’s idea of regulation seems to be to OK anything he likes, or that personally benefits him. Therefore, “the states have come in and played a really important role, since the DOJ has basically walked away from a lot of interest enforcement,” said George Hay, a professor of law and economics at Cornell University. “The states take this really seriously.”
While there have been lots of angles on this merger in the media (including concerns over foreign investments), the antitrust lawsuit is really fairly narrow — the main argument is that the merger will “kill off theaters,” Hay said, and hurt consumers and creators.
Bonta has pointed out that after the merger, the new Paramount would control about 27% of films released into theaters in the U.S., along with basic cable distribution.”
California AG Bonta is being quite clear and confident that they are going to win this case:
And if you want to know what is going to happen when…
2
There are many reasons why this illegal merger is never going to happen, but…
Baby Boy Ellison is perhaps the main reason
Every American should be opposed to one surveillance and AI-friendly family controlling so much information and shaping opinions, don’t you think?
And meanwhile as our industry burns, he and his henchmen are behaving like bullies and jerks… mirroring Boeing in strategy, seemingly willing to leave qualified labor needs behind because they just can’t get their way. Look how well it worked for Boeing — we should never fly them again.
And then making insane and unreasonable demands…
And it gets worse…as things do when the powerful get desperate. There was this astroturf scam campaign…
“A state attorney general challenging the controversial mega-merger between Paramount Skydance and Warner Bros. Discovery is under attack from a newly created mystery nonprofit accused of being an “astroturf” front group.
The group sent text messages in recent days calling on Californians to pressure Democratic state Attorney General Rob Bonta in support of the merger, which he has sued to block in court.
The text messages are the latest escalation of the increasingly bitter battle between Bonta and Paramount CEO David Ellison, who has threatened to move his movie studio to Texas or Tennessee, according to reports from multiple outlets, if a coalition of state attorneys general led by Bonta keeps fighting the merger.
The group behind the text campaign, Neighbors for Strong Communities, cited Ellison’s threat in messages encouraging support for the merger.
The group denied the allegations that it is mounting an “astroturf” campaign, but declined to reveal its donors. The lack of transparency led free-speech advocates to issue a scathing press release this week.”
Fortunate for all of us, those on the side of justice, opportunity, and a level playing field are pushing back:
“Taxpayers should under no circumstances be on the hook for costs that Paramount and Warner Bros. negotiated and committed to as part of their own multi-billion-dollar deal,” said Mark Ruffalo, actor and member of the Committee for the First Amendment. “That Paramount would make such a demand on the same day that a shady organization is trying to manufacture constituent opposition to Attorney General Bonta shows again how desperate they are to force this merger through before a judge can rule on its legality.”
“The behavior we’re seeing is what powerful corporations do when they are losing control of the story,” said Rashad Robinson, Co-Chair of the Committee for the First Amendment. “The more the public understands what’s at stake — fewer jobs, fewer stories told, and even more power in the hands of a few billionaires — the harder the deal becomes for Paramount to defend. They want to manufacture support they don’t have and raise the cost for the public officials willing to stand up to corporate greed. Astroturf campaigns and threats to stick taxpayers with the bill are signs of desperation, not strength.”
“These corporations know where the grassroots movement actually is: with the industry professionals fighting to block this merger,” said Jessica J. González, co-CEO of Free Press Action. “Thousands of workers and hundreds of thousands of consumers have opposed this deal. The pro-merger coalition is a handful of billionaires and bankers, and they are trying to buy a constituency and extort the public at the same time. This PR campaign is yet another face-off between the many and the money.”
“Paramount negotiated the ticking fees to entice Warner Brothers shareholders in a hostile takeover bid,” said Milo Vassallo, Executive Director of the Media and Democracy Project. “The deal reeks of corruption. Now they are trying to weaponize the fees to pressure the states and block legitimate scrutiny by the courts. They know the takeover is in jeopardy. The number of people this merger benefits fit in a stretched limo – it’s no surprise they would need to pay for an astroturf campaign.”
3
The bad faith tactics seem to sway the weak, the foolish, and/or corrupt …
You can decide which box each of the below should best sit.
The Governor who did too little too late when our industry got pushed out of state..
He somehow believes there could be an enforceable settlement, “If it’s good”
And at least he has a kickass AG to keep him reasonably right.
The Mayor who also did too little too late while our industry collapsed:
Bass thankfully is now recognizing she has to be a bit more on the workers’ and people’s side:
And then there’s the DGA & IATSE :
I am a bit shocked that the DGA and IATSE didn’t take a stronger more strategic position, knowing what they know:
“While we have been consistent in our view that mergers, such as this one, historically offer few benefits to workers, we are also particularly concerned about the negative impact a delay in the decision regarding the proposed merger will have on our members and the industry at large,” the two unions wrote.
Yeah…
maybe they should have spoken to their membership about what mergers do to them…
The concessions that the DGA and IATSE asked for, won’t be given, or to the degree they are, they won’t be kept.
Indiewire doesn’t seem to think so either. So why did the DGA & IATSE do this? It certainly doesn’t help a strong negotiation to break into separate factions.
California knows what this merger will cost in terms of jobs lost.
Does this look like they are looking out for their membership?
Fortunately, some unions still have both a clear view of things and a backbone.
Like the Teamsters, most recently:
https://www.thewrap.com/industry-news/deals-ma/hollywood-teamsters-opposes-paramount-warner-merger/
And we can always count the WGA to do the right thing.
They’ve been doing so since early on.
4
Recognize: CNN is not what this battle is about — at least not on the legal side of things.
Yet, David Ellison seems to think it is. Bonta knows the truth…
And of course if the Democrats take The House they heat things up a bit by compelling testimony.
The AG’s case is about classic antitrust violation and fair competition — and ParaBros won’t pass the test.
“The House Committee on the Judiciary is committed to scrutinizing how the antitrust laws are being enforced to promote the public interest; how market power abuses may be harming not only competition but consumers, workers, and the public generally; and whether the federal antitrust agencies are successfully promoting free competition and innovation — or whether they are using their governmental powers to distort the market and undermine freedom of speech and freedom of the press, in violation of the First Amendment,” Raskin wrote.
But the illegal merger carries with it other ramifications too that aren’t part of the AGs’ case, like maintaining a free press, which is exactly what BabyBoyEllison and is Oligarch-wannabe pops want to do: shut down dissent and put up the surveillance state Oracle-backed Flock camera network. Raskin wisely adds:
“the investigation is a “priority” and that “anyone involved should be prepared to answer under oath for their role in this brazen campaign to bend America’s free press to Donald Trump’s political, financial and personal will.”
Many people think it is all bullshit.
But Ellison has made bullshit suggestion that if they didn’t sell it, he can solve some concerns by forming an oversight committee.
Others don’t see it the same way, though:
5
No Concessions!
Do not grant any ground to the billionaire media moguls.
And don’t forget all that will get lost if the illegal merger progresses.
We will see consolidation in the film archives and likely lead to a bias in terms of what gets licensed and to whom.
BONUS!
Wonder who IS benefiting from all of this while the rest all suffer?
Gross.
