The Freedom of the Press Foundation and Reporters Without Borders have sent a letter to Paramount’s chief legal officer demanding access to the company’s books and records, citing reports that CEO David Ellison promised favors to the White House to secure federal approval for Paramount’s bid to acquire Warner Bros. Discovery.
The groups, both Paramount shareholders, argue the reports create a credible basis to believe Ellison, board members, and other executives may have breached their fiduciary duties or committed misconduct.
Their lawyers at the Public Integrity Project sent the 19-page letter to Makan Delrahim on Thursday.
They are invoking Delaware law, which allows shareholders to inspect company documents for any proper purpose.
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| Trump, Ellison |
- The timing of Stephen Colbert’s “The Late Show” cancellation ahead of the merger approval.
- Reports that the Ellisons promised Trump administration officials “sweeping” changes to CNN if the WBD deal is approved.
- Changes implemented by Bari Weiss at CBS News since Ellison appointed her editor-in-chief.
“The foregoing account of recent events… creates a credible concern that Paramount leadership has offered, solicited, or effectuated a corrupt exchange: more favorable coverage of the Trump administration and its allies in exchange for favorable treatment by Trump administration antitrust and media regulators,” the letter states. Such actions, if proven, would constitute a breach of fiduciary duties and expose the company to civil and criminal penalties.
The groups have given Paramount five days to respond or face legal action.