Paramount Investor Sues Ellison Family Over Alleged Trump Side Deal

A shareholder in Paramount Global filed a lawsuit on Tuesday in Delaware Chancery Court against David Ellison, chief of Skydance, and his father, tech billionaire Larry Ellison. The suit alleges that the Ellisons engaged in an "illegal" side deal with former President Donald Trump to secure U.S. governmental approval for their proposed takeover of Warner Bros. Discovery. The plaintiff seeks to block the Paramount transaction.

The lawsuit claims that the Ellisons' actions constituted a breach of fiduciary duty and sought to improperly influence the regulatory process. While the specifics of the alleged "side deal" are not fully detailed in the initial filing, the core accusation centers on securing an advantage through an improper agreement with a political figure. This legal challenge introduces a new layer of complexity to the ongoing negotiations and potential merger between Skydance and Paramount.

David Ellison has been a central figure in the bid to acquire a controlling stake in Paramount, a process that has faced significant scrutiny from shareholders and the board. The proposed deal with Skydance aims to combine the assets of Paramount with those of Skydance Media. However, concerns have been raised by various shareholder groups regarding the valuation and the terms of the potential acquisition. The inclusion of allegations involving a former U.S. President adds a significant political dimension to the corporate dispute.

Larry Ellison, the founder of Oracle, has been a key financial backer of his son's endeavors, including the Skydance bid for Paramount. The lawsuit implies that his involvement was crucial in facilitating the alleged improper agreement. The Delaware Chancery Court is expected to review the claims made by the Paramount shareholder, which could have substantial implications for the future of Paramount Global and the proposed transaction with Skydance Media.