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Column: How a legal loophole allows antiabortion prosecutors to obtain women's secret health data

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Column: How a legal loophole allows antiabortion prosecutors to obtain women's secret health data

The American legal system has a message for women concerned about their abortion rights: Don’t make the mistake of thinking that your pharmacist is your friend.

Thanks to a gaping loophole in federal healthcare regulations, some of our leading drug store chains turn over customers’ most sensitive private healthcare information to law enforcement agencies, even without a warrant.

That’s the finding of a subcommittee headed by Sen. Ron Wyden (D-Ore.), which learned that all eight of the nation’s largest pharmacy chains have routinely turned over prescription records of thousands of Americans to law enforcement agencies or other government entities secretly without a warrant.

Medical care procured outside a patient’s home state increasingly leaves a digital trail that will easily make its way back to the patient’s domicile.

— Carleen M. Zubrzycki, University of Connecticut

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The chains are CVS, Walgreens, Cigna, Optum Rx, Walmart, Kroger, Rite Aid and Amazon. CVS, Kroger and Rite Aid, which have a total of about 11,000 locations nationwide, don’t require store staff to run the requests past company lawyers before complying.

Only Amazon notifies customers that it received a subpoena or warrant for their prescription data.

Wyden’s committee sought briefings from the pharmacy chains after the Supreme Court’s 2022 Dobbs decision overturned nationwide abortion rights.

Since then, Wyden told me by email, “Republican states across the country have criminalized abortion.” That placed privacy “under threat like never before.” He said his goal is to urge “the executive branch to do everything in its power to stop far-right prosecutors and politicians from using women’s private records against them.”

The briefings, Wyden and fellow subcommittee Democrats informed Health and Human Services Secretary Xavier Becerra in a Dec. 12 letter, “made clear that these companies’ privacy practices vary widely, in ways that seriously impact patient privacy.”

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None of the pharmacies require a warrant before turning over requested data; all “will turn medical records over in response to a mere subpoena,” which often doesn’t have to be signed by a judge.

That’s a flaw in the Health Insurance Portability and Accountability Act of 1996, or HIPAA, which purports to protect individuals’ health information from disclosure by providers except in narrow circumstances.

CVS spokeswoman Amy Thibault told me by email, “HIPAA does not require law enforcement to obtain a warrant or judge-issued subpoena before they make a lawful request for records containing PHI.” She said that CVS staff “are trained how to appropriately respond to lawful requests from regulatory agencies and law enforcement.”

HIPAA applies to pharmacies as well as physicians and hospitals. What sets them apart, however, is the breadth of their networks— it’s a rare hospital or physician’s practice that maintains a database that can be accessed coast to coast.

Wyden and his colleagues urged Becerra to tighten HIPAA regulations to require pharmacies to “insist on a warrant” before turning over private health data, so that law enforcement agencies have to defend their demands in court.

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Some of America’s leading drug store chains turn over customers medical records to law enforcement agencies without even requiring a warrant, exposing women seeking abortions to prosecution by anti-abortion states.

(Senate Finance Committee)

Health and Human Services isn’t the only agency concerned with the misuse of personal data. The Federal Trade Commission on Tuesday charged the data broker Outlogic with selling consumers’ location information extracted from smartphone apps without their permission.

The geolocation data, the FTC said, “could be used to track people’s visits to sensitive locations such as medical and reproductive health clinics, places of religious worship and domestic abuse shelters.” According to a statement by FTC Chair Lina Khan, in at least one contract the company had tracked “Ohio residents who visited specific doctors, including cardiologists, gastroenterologists, or endocrinologists, and then pharmacies or specialty infusion centers.”

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The FTC’s legal complaint said the result could include “loss of privacy, exposure to discrimination, physical violence, emotional distress, and other harms.”

In a settlement with Outlogic reached Tuesday, the FTC prohibited the company from selling or sharing any “sensitive location data,” including data involving “locations that provide services to LGBTQ+ people such as bars or service organizations,” “locations of public gatherings of individuals at political or social demonstrations or protests” and data that could be used “to determine the identity or location of a specific individual.”

Outlogic will also have to delete or destroy any such data already collected, and provide consumers with easy ways to refuse permission for their data to be sold and to find out to whom it has already been sold.

Becerra hasn’t responded to the committee’s letter, but his agency did launch a rule-making procedure in April aimed at prohibiting the disclosure of personal information about a person’s reproductive healthcare by a provider, including a pharmacy, in a state where the healthcare is legal, but sought for an investigation or prosecution in a state where it’s banned.

But the Health and Human Services initiative is still only a proposal, not a rule. Several factors have made it more urgent.

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The so-called interoperability of medical data is generally reckoned to be a good thing. Pharmacists should have access to the full range of a customer’s prescriptions, for example, so they can watch out for dangerous interactions among medicines that may have been missed by doctors, especially if one patient is treated by multiple physicians.

Those checks have been made even easier by the growth of national drug chains, which have supplanted the mom-and-pop drugstores that used to be common in America. Now one database can provide patient information to thousands of affiliated pharmacists coast to coast.

But the Supreme Court’s overturning of abortion rights in 2022 converted that boon into a potential peril by turning judgments about medical procedures over to the states.

“There are now categories of care in which states have taken dramatically different approaches to whether that care should be available,” says Carmel Shachar, an expert on health law and policy at Harvard Law School. Abortion is the most evident area, but divergences in state law increasingly apply to gender-affirming care and substance abuse treatment.

Those divergences, Shachar told me, make the relevant medical records especially sensitive to the point where they need to be protected from law enforcement.

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But expansive databases may make that difficult — a prosecutor in antiabortion Texas might be prevented by a medical shield law from accessing data about a Texan’s legal treatment in Massachusetts, but theoretically could subpoena it from a pharmarcy chain’s branch in Texas.

The challenge goes beyond simply shielding direct evidence of a legal abortion — such as a prescription for mifepristone — from prying law enforcement eyes in an antiabortion state.

“There’s a perception that abortions or gender-affirming care exist on their own islands separate from other medical care,” Shachar says. “But somebody who is medically literate can read between the lines of a medical record to see if an abortion happened.”

For instance, consider if a medical record showed that a woman was pregnant and records show a bit later that she’s begun to take chemotherapy treatment for cancer that would be incompatible with pregnancy.

“That might be suggestive that she was pregnant and is no longer pregnant, with no baby to show for it,” Shachar says. “How much of a medical record you need to protect to truly protect the privacy of people who have had abortions or gender-affirming care is murky.”

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Placing a legal moat around medical records of an out-of-state abortion may be difficult. “Medical care procured outside a patient’s home state increasingly leaves a digital trail that will easily make its way back to the patient’s domicile,” observed Carleen M. Zubrzycki of the University of Connecticut in a 2022 law review paper.

When any such patient “receives any subsequent medical care — abortion-related or not — in her state of residence,” she wrote, “the odds are high that her home-state providers will access and incorporate her entire medical record into their own records.” That would undermine the efforts of safe-haven states to protect visiting patients by providing “slam-dunk evidence that could be used in out-of-state litigation to punish abortions.”

The determination of antiabortion activist politicians to narrow women’s reproductive healthcare options is explicit and persistent.

On July 7, 2022 — just two weeks after the Supreme Court handed down the Dobbs decision — a dozen right-wing Texas state legislators warned the Dallas law firm Sidley Austin that it might face criminal charges for having “decided to reimburse the travel costs of employees who leave Texas to murder their unborn children” — i.e., who leave Texas to obtain legal abortions elsewhere.

Last February, the attorneys general of 20 red states, led by Missouri Atty. Gen. Andrew Bailey, sent threatening letters to CVS, Walgreens, Rite Aid, Albertsons, Walmart, Kroger and Costco warning them that federal law prohibited them from using the mail to distribute drugs for medication abortion, such as mifepristone.

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The letters cited the antique and long-discredited 1873 statute known as the Comstock Act after its bluenosed progenitor. The law’s applicability to abortion rights has long been dismissed by legal scholars. But it was at the core of a ruling by U.S. District Judge Matthew Kacsmaryk of Texas invalidating the Food and Drug Administration’s approval of mifepristone.

The FDA’s rules on mifepristone, which allow the drug to be taken by patients outside a hospital or doctor’s office, are currently before the Supreme Court.

The quest by antiabortion prosecutors for data pertaining to out-of-state medical procedures is destined to grow. The proportion of patients traveling out of their home states to obtain abortions has doubled over the last three years to 20% in the first six months of 2023 from 10% in the same period in 2020, according to the Guttmacher Institute.

The rate is especially high in safe-haven states bordered by antiabortion states, such as Illinois, where out-of-state patients increased in early 2023 to 18,870 from 5,570 three years earlier. New Mexico and Colorado experienced sharp increases for the same reason. In California, where abortions increased by 15,200 in the statistical period, only 16% of the increase was due to out-of-state patients — presumably because abortion is legal in the nearby states of Nevada, Oregon and Washington.

What is becoming clear as state legislators take advantage of the Supreme Court’s evisceration of medical privacy rights in the Dobbs decision, is that the stakes are destined to become magnified in the absence of federal action. People suffering from infectious diseases linked to what legislators disdain as immoral behavior such as HIV or hepatitis C might face increased discrimination or limits on access to public healthcare programs, for example.

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“In terms of states diverging in what medical care is allowed or isn’t allowed,” Shachar says, “abortion and gender-affirming care might be the tip of the iceberg.”

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Startup Varda Space Industries snags former Mattel plant in El Segundo

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Startup Varda Space Industries snags former Mattel plant in El Segundo

In an expansion of its business of processing pharmaceuticals in Earth’s orbit, Varda Space Industries is renting a large El Segundo plant where toy manufacturer Mattel used to design Hot Wheels and Barbie dolls.

The plant in El Segundo’s aerospace corridor will be an extension of Varda Space Industries’ headquarters in a much smaller building on nearby Aviation Boulevard.

Varda will occupy a 205,443-square-foot industrial and office campus at 2031 E. Mariposa Ave., which will give it additional capacity to manufacture spacecraft at scale, the company said.

Originally built in the 1940s as an aircraft facility, the complex has a history as part of aerospace and defense industries that have long shaped the South Bay and is near a host of major defense and space contractors. It is also close to Los Angeles Air Force Base, headquarters to the Space Systems Command.

Workers test AstroForge’s Odin asteroid probe, which was lost in space after launch this year.

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(Varda Space Industries)

Varda is one of a new generation of aerospace startups that have flourished in Southern California and the South Bay over the last several years, particularly in El Segundo, often with ties to SpaceX.

Elon Musk’s company, founded in 2002 in El Segundo, has revolutionized the industry with reusable rockets that have radically lowered the cost of lifting payloads into space. Though it has moved its headquarters to Texas, SpaceX retains large-scale operations in Hawthorne.

Varda co-founder and Chief Executive Will Bruey is a former SpaceX avionics engineer, and the company’s spacecraft are launched on SpaceX’s workhorse Falcon 9 rockets from Vandenberg Space Force Base in Santa Barbara County.

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Varda makes automated labs that look like cylindrical desktop speakers, which it sends into orbit in capsules and satellite platforms it also builds. There, in microgravity, the miniature labs grow molecular crystals that are purer than those produced in Earth’s gravity for use in pharmaceuticals.

It has contracts with drug companies and also the military, which tests technology at hypersonic speeds as the capsules return to Earth.

Its fifth capsule was launched in November and returned to Earth in late January; its next mission is set in the coming weeks. Varda has more than 10 missions scheduled on Falcon 9s through 2028.

For the last several decades, the Mariposa Avenue property served as the research and development center for Mattel Toys. El Segundo has also long been a center for the toy industry as companies like to set up shop in the shadow of Mattel.

The Mattel facility “has always been an exceptional property with a legacy tied to aerospace innovation, and leasing to Varda Space Industries feels like a natural continuation of that story,” said Michael Woods, a partner at GPI Cos., which owns the property.

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“We are proud to support a company that is genuinely pushing the boundaries of what’s possible, and are excited to watch Varda grow and thrive here in El Segundo,” Woods said.

As one of the country’s most active hubs of aerospace and defense innovation, El Segundo has seen its industrial property vacancy fall to 3.4% on demand from space companies, government contractors and technology startups, real estate brokerage CBRE said.

Successful startups often have to leave the neighborhood when they want to expand, real estate broker Bob Haley of CBRE said. The 9-acre Mattel facility was big enough to keep Varda in the city.

Last year, Varda subleased about 55,000 square feet of lab space from alternative protein company Beyond Meat at 888 Douglas St. in El Segundo, which it started moving into in June.

Varda will get the keys to its new building in December and spend four to eight months building production and assembly facilities as it ramps up operations. By the end of next year, it expects to have constructed 10 more spacecraft.

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In the future, Varda could consolidate offices there, given its size. Currently, though, the plan is to retain all properties, creating a campus of three buildings within a mile of one another that are served by the company’s transportation services, Chief Operating Officer Jonathan Barr said.

“We already have Varda-branded shuttles running up and down Aviation Boulevard,” he said.

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How Iran War Is Threatening Global Oil and Gas Supplies

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How Iran War Is Threatening Global Oil and Gas Supplies

Ships near the Strait of Hormuz before and after attacks began

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Note: Times shown are in Iran Standard Time. Some ships in the region transmit false positions and others sometimes stop broadcasting their locations, and may not be reflected in the animation. Ships with sparse location data are shown in a lighter shade. Source: Kpler and Spire.

Every day, around 80 oil and gas tankers typically pass through the Strait of Hormuz, the narrow waterway off Iran’s southern coast that carries a fifth of the world’s oil and a significant amount of natural gas.

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On Monday, just two oil and gas tankers appear to have crossed the strait, according to a New York Times analysis of shipping activity from Kpler, an industry data firm. Since then, one tanker passed through.

“It’s a de facto closure,” said Dan Pickering, chief investment officer of Pickering Energy Partners, a Houston financial services firm. “You’ve got a significant number of vessels on either side of the strait but no one is willing to go through.”

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Tankers have been staying away from Hormuz since the U.S.-Israeli attacks on Iran that began on Saturday. A prolonged conflict could ripple broadly across the global economy, threatening the energy supplies of countries halfway around the world and stoking inflation.

International oil prices have climbed 12 percent since the fighting began, trading Tuesday around $81 a barrel, and natural gas prices have surged in Europe and in Asia.

A senior Iranian military official threatened on Monday to “set on fire” any ships traveling through the Strait of Hormuz. Vessels in the region have already come under attack. Several oil and gas facilities have also been struck or affected by nearby shelling, though the damage did not initially appear to be catastrophic.

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Where ships and energy facilities have been damaged

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Note: Damage as of 2 p.m. Eastern time Tuesday. Source: Kpler, Kuwait National Petroleum Company, Saudi Arabian Ministry of Energy, Planet Labs, QatarEnergy, United Kingdom Maritime Trade Operations and Vanguard Tech.

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A fire broke out Tuesday at a major energy hub in Fujairah, United Arab Emirates, from the falling debris of a downed drone, the authorities said. On Monday, Qatar halted production of liquefied natural gas, or fuel that has been cooled so that it can be transported on ships, after attacks on its facilities.

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Facilities at Ras Tanura oil refinery in Saudi Arabia were on fire on Monday after two Iranian drones were intercepted, according to Saudi Arabia’s Ministry of Energy, causing fragments to fall. Vantor

The sharp reduction in tanker traffic is reducing the supply of oil and gas to world markets, pushing up prices for both commodities. And the longer that ships stay away from the Strait of Hormuz, the less oil and gas get out to the world, which could raise prices even more.

Shipping companies have paused their tankers to protect their crew and cargo, and because insurance companies are charging significantly more to cover vessels in the conflict area.

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On Tuesday, President Trump said that “if necessary,” the U.S. Navy would begin escorting tankers through the strait. He also said a U.S. government agency would begin offering “political risk insurance” to shipping lines in the area.

In addition to tankers, other large vessels regularly go through the strait, including car carriers and container ships. In normal conditions, nearly 160 make the trip each day.

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Some ships in the region turn off the devices that broadcast their positions, while others transmit false locations — making it hard to give a full picture of the traffic in the strait.

The Shiva is a small oil tanker that has repeatedly faked its location, according to TankerTrackers.com, which tracks global oil shipments. It is suspected of carrying sanctioned Iranian oil, according to Kpler. The Shiva was one of the two tankers that crossed the strait on Monday.

The oil and gas that typically move through the strait come from big producing countries like Saudi Arabia, Iraq, Iran and United Arab Emirates, and are exported around the world.

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Where tankers moving through the Strait have traveled

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Note: Tanker paths are since Jan. 1 and include all tankers and gas carriers. Source: Kpler and Spire.

In 2024, more than 80 percent of the oil and gas transported through the Strait of Hormuz went to Asia. China, India, Japan and South Korea were the top importers, according to the U.S. Energy Information Administration.

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Countries have energy stockpiles that could last them into the coming months, but a continued shutdown of the strait could damage their economies.

Several big disruptions have roiled supply chains in recent years, but the tanker standstill in the Strait of Hormuz could have an outsize impact.

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Paramount credit downgraded to ‘junk’ status over debt worries

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Paramount credit downgraded to ‘junk’ status over debt worries

Paramount Skydance’s jubilation over its come-from-behind victory to claim Warner Bros. Discovery has entered a new phase:

Call it the deal-debt hangover.

Two major ratings agencies have raised concerns about Paramount’s credit because of the enormous debt the David Ellison-led company will have to shoulder — at least $79 billion — once it absorbs the larger Warner Bros. Discovery, bringing CNN, HBO, TBS and Cartoon Network into the Paramount fold.

Fitch Ratings said Monday that it placed Paramount on its “negative” ratings watch, and downgraded its credit to BB+ from BBB-, which puts the company’s credit into “junk” territory. Fitch said it took action due to “uncertainty” surrounding Paramount’s $110-billion deal for Warner Bros. Discovery, which the boards of both companies approved on Friday.

S&P Global Ratings took similar action.

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To finance the Warner takeover, Ellison’s billionaire father, Larry Ellison, has agreed to guarantee the $45.7 billion in equity needed. Bank of America, Citibank and Apollo Global have agreed to provide Paramount with more than $54 billion in debt financing.

“Potential credit risks include the prospective debt-funded structure, Fitch’s expectation of materially elevated leverage and limited visibility on post-transaction financial policy and capital structure,” Fitch said.

Late last week, Paramount sent $2.8 billion to Netflix as a “termination fee” to officially end the streaming giant’s pursuit of Warner Bros. That payment paved the way for Warner and Paramount’s board to enter into the new merger agreement.

Paramount hopes the merger will be wrapped up by the end of September. It needs the approval of Warner Bros. Discovery shareholders and regulators, including the European Union.

Paramount executives acknowledged this week the new company would emerge with $79 billion in debt — a considerably higher total than what Warner Bros. Discovery had following its spinoff from AT&T. That 2022 transaction left Warner Bros. Discovery with nearly $55 billion of debt, a burden that led to endless waves of cost-cutting, including thousands of layoffs and dozens of canceled projects.

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Warner still has $33.5 billion in debt, a lingering legacy that will be passed on to Paramount.

Paramount plans to restructure about $15 billion in Warner Bros. Discovery’s existing debt.

Paramount CEO David Ellison at a 2024 movie premiere for a Netflix show.

(Evan Agostini / Invision / AP)

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Paramount told Wall Street it would find more than $6 billion in cost cuts or “synergies” within three years — a number that has weighed heavily on entertainment industry workers, particularly in Los Angeles.

Hollywood already is reeling from previous mergers in addition to a sharp pullback in film and television production locally as filmmakers chase tax credits offered overseas and in other states, including New York and New Jersey.

Some entertainment executives, including Netflix Co-Chief Executive Ted Sarandos, have speculated that Paramount will need to find more than $10 billion in cost cuts to make the math work. More recently, Sarandos went higher, telling Bloomberg News that Paramount may need $16 billion in cuts.

Cognizant of widespread fears about additional layoffs, Paramount Chief Operating Officer Andrew Gordon took steps this week to try to tamp down such concerns.

Gordon is a former Goldman Sachs banker and a former executive with RedBird Capital Partners, an investor in Paramount and the proposed Warner Bros. deal. He joined Paramount last August as part of the Ellison takeover.

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During a conference call Monday with analysts, Gordon said Paramount would look beyond the workforce for cuts because the company wants to maintain its film and TV production levels.

Paramount plans to look for cost savings by consolidating the “technology stacks and cloud providers” for its streaming services, including Paramount+ and HBO Max, Gordon said. The company also would search for reductions in corporate overhead, marketing expenses, procurement, business services and “optimizing the combined real estate footprint.”

It’s unclear whether Paramount would sell the historic Melrose Avenue lot or simply centralize the sprawling operations onto the Warner Bros. and Paramount lots in Burbank and Hollywood.

Workers are scattered throughout the region.

HBO, owned by Warner Bros. Discovery, maintains its West Coast headquarters in Culver City; CBS television stations operate from CBS’ former lot off Radford Avenue in Studio City; and CBS Entertainment and Paramount cable channels executive teams are located in a high-rise off Gower Street and Sunset Boulevard, blocks from the Paramount movie studio lot.

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“The combination of PSKY and WBD could create a materially stronger business than either individual entity,” Standard & Poor’s said in its note to investors. “However, this transaction presents unique challenges because it would involve the combination of three companies, with the smallest, Skydance, being the controlling entity.”

David Ellison’s production firm, Skydance Media, was the entity that bought Paramount, creating Paramount Skydance.

Ellison has not announced what the combined company will be called.

Paramount shares closed down more than 6% Tuesday to $12.45.

Warner Bros. Discovery fell 1% to $28.20. Netflix added less than 1% to close at $97.70.

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