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The Fallout From the End of the U.S. Steel Deal

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The Fallout From the End of the U.S. Steel Deal

President Biden is set to officially block Nippon Steel’s $14 billion takeover of U.S. Steel as soon as Friday, most likely putting an end to an industrial megadeal that ran up against widespread political opposition.

But the decision could set off a cascade of consequences, including whether it would dissuade foreign investment in key industries, even from crucial U.S. allies like Japan. There’s one near-certainty: Expect a lot of litigation.

The deal’s demise seemed increasingly inevitable. In March, Biden said it was “vital” that U.S. Steel remained American-owned. The United Steelworkers’ union opposed the transaction from the start, questioning Nippon Steel’s commitment to maintaining the American company’s production and unionized employment levels. (That U.S. Steel is headquartered in Pennsylvania, a crucial election battleground state, escaped no one’s notice.)

Last month, the federal government panel, known as CFIUS, that reviewed the deal on national security grounds expressed concern that the Japanese suitor’s global business considerations could eventually outweigh any commitments it made to preserve U.S. Steel production levels.

President-elect Donald Trump also pledged to block the takeover once he took office.

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Others have worried that blocking the deal could chill foreign investment. In recent days, some senior Biden advisers warned that rejecting the transaction could damage relations with Japan, The Washington Post reported.

Japanese officials pressed Biden to approve the deal. Rejecting it “will send a stark message that investment from Japan, regardless of lack of security concerns, is not welcome in the U.S.,” Takehiko Matsuo, a senior trade minister, wrote to Biden administration officials last month.

The matter will probably head to court. Nippon Steel has complained of the White House’s “impermissible influence” in the CFIUS process. That lays the groundwork for the Japanese company or U.S. Steel to sue over Biden’s expected move.

DealBook also wonders whether the companies would sue each other, perhaps citing a failure to do enough to win approval. (The deal agreement requires Nippon Steel to pay its American counterpart $565 million if regulators block the transaction.)

What next for U.S. Steel? The company’s C.E.O., David Burritt, has warned that the steel maker needs investment to upgrade its aging plants. Even CFIUS acknowledged that the company had a “history of inadequate attempts to improve its competitiveness.”

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One possibility is another bidder — such as Cleveland-Cliffs, which had been previously rebuffed by U.S. Steel and whose stock has been under pressure — could swoop in. But there’s bad blood between Burritt and his Cleveland-Cliffs counterpart, raising the question of whether U.S. Steel investors would need to heap on the pressure to get a deal done.

Mike Johnson faces a nail-biter vote on Friday for House speaker. Johnson has the backing of President-elect Donald Trump and Elon Musk, but is hampered by a razor-thin majority and a fractious House Republican conference. Corporate America will closely watch the vote’s outcome for what it says about the chamber’s ability to pass legislation once Trump takes office.

The authorities identify the driver of the Las Vegas Cybertruck explosion. The man was an Army master sergeant on leave from active duty, who killed himself immediately before the rented Tesla detonated outside a Trump hotel in Las Vegas on New Year’s Day. The F.B.I. said it had found no link between the incident and the deadly New Orleans rampage hours earlier involving an Army veteran.

China places trade restrictions on dozens of U.S. companies. The Ministry of Commerce announced on Thursday that export-control limits would be put on 28 companies, including Boeing and Lockheed Martin. The move comes just weeks before Trump takes office, and will probably escalate a trade war between Washington and Beijing. More shots could be fired soon: The Biden administration is weighing a ban on Chinese-made drones.

At any other car company, the sales numbers announced by Tesla on Thursday would have been a catastrophe. Deliveries for the year fell slightly in a growing market, the first annual decline in the company’s history.

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Yet the reaction on Wall Street was relatively muted when compared to the huge rally in Tesla’s share price in recent months, The Times’s Jack Ewing writes for DealBook. That reflects how much Elon Musk has sold investors on the idea that the cars are a piece of a much bigger vision that includes self-driving taxis and humanoid robots — and his close ties to President-elect Donald Trump.

Shares closed down but the stock is up more than 55 percent since Election Day. Musk’s relationship with Trump has given him a direct line to the White House that he can use to promote his business interests.

“Investors have shifted,” Erik Gordon, a professor at the Ross School of Business at the University of Michigan, told DealBook. “They thought of it as an E.V. company. Now they think of it as a technology platform. ‘What will Elon think of next?’”

Musk has revealed little detail about his plans. During conference calls with investors and analysts, he has focused on what he says will be trillions of dollars in revenue from self-driving taxis that are probably years away from mass production.

Yet Musk may find it difficult to realize his grand visions if the company keeps losing market share to rivals such as General Motors, BMW and BYD. (The Chinese car maker reported record sales in 2024.)

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Does Musk need to accelerate plans for a lower-cost Tesla? He told investors in October that the company would begin selling a car this year that would cost substantially less than a Model 3 sedan, which starts at $42,500 before state and federal incentives.

But Musk has sounded ambivalent about the new vehicle, calling it “pointless” unless it’s capable of driving autonomously. And Tesla has not displayed a prototype yet.

That has led to speculation that Musk is not that interested in mass-market cars anymore. “What excites Musk is the technology for the day after tomorrow,” Gordon said. “An econobox E.V. just doesn’t ring his bell.”

One thing to watch in 2025: Musk’s reaction if car sales remain tepid and Tesla shares fall further. Would that prompt him to deploy more of the skills he used to build Tesla into the world’s largest maker of electric cars?


A federal appeals court has knocked down one of President Biden’s biggest tech policy accomplishments: the F.C.C.’s net neutrality rules on broadband internet providers that sought to safeguard consumers’ access to online content.

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The dismantling comes as companies brace for the incoming Trump administration to usher in a new era of deregulation, and further limit regulatory reach.

The decision is a win for cable and telecom companies such as AT&T and Comcast, ending a two-decade effort to regulate them like utilities. It also shows the impact of a recent Supreme Court ruling that is expected to limit federal agencies’ power.

A recap: The regulations, which have been championed by Google, Facebook and Netflix, were put in place under the Obama administration amid concern that internet service providers could become de facto gatekeepers with the power to slow or block access to content. The rules were revoked during the first Trump term, only to be reinstated by the F.C.C. in April.

Brendan Carr, President-elect Donald Trump’s pick to lead the F.C.C., has been a vocal critic of the rules.

The ruling could inspire other legal challenges. It relies on the Supreme Court’s upending last year of the Chevron doctrine requiring courts to defer to federal agencies’ interpretation of ambiguous statutes. “The F.C.C.,” Judge Richard Allen Griffin wrote, “lacks the statutory authority to impose its desired net-neutrality policies.”

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Tim Wu, a former Biden administration official who coined the term “net neutrality,” slammed the decision, calling it “blatant judicial activism that puts corporate interests over American democracy.”

What’s next? The fight over net neutrality isn’t over: The decision doesn’t affect state laws, including those in California, Washington and Colorado. And Democrats at the F.C.C. called on Congress to enshrine net neutrality into law. Still, many commentators note that net neutrality isn’t the hot-button consumer issue it had once been.

“The market no longer thinks it’s a big deal and hasn’t for a while,” Blair Levin, a former chief of staff to the F.C.C., told The Times.


In the latest sign of how Big Tech is repositioning itself for the new Trump administration, Meta has tapped a prominent Republican to head its global policy team.

Joel Kaplan, a longtime Meta employee and a deputy chief of staff under former President George W. Bush, will take over from Nick Clegg, as first reported by Semafor.

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Meta has tried to take itself out of the political spotlight. Clegg, a former deputy prime minister of Britain, joined the tech giant when the company was facing fierce blowback, including for its handling of disinformation on its platform during the 2016 election.

He’s credited with smoothing relations with regulators, especially in Washington and Brussels.

Could his leftish politics have become a liability? Clegg may have been planning his exit before the election, but he didn’t hide his opinions. Last month, he warned that Elon Musk, whose X and xAI compete with Meta, could become a “political puppet master” and criticized Musk’s stewardship of X.

The remarks came as many businesses worry about retribution from President-elect Donald Trump and Musk — and as Big Tech C.E.O.s have gone out of their way to curry favor with them.

Kaplan’s deep Republican roots could help Meta in the new Trump era. He joined Facebook in 2011, and later served as Clegg’s deputy. Before that, he clerked for Justice Antonin Scalia on the Supreme Court and is a close friend of Justice Brett Kavanaugh. (He appeared at Kavanaugh’s contentious confirmation hearings, and later apologized to Meta employees who thought his presence showed a political preference).

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He has also been one of the loudest voices inside Meta pushing against restrictions on political content.

Mark Zuckerberg has largely turned away from politics. For years, the tech mogul publicly campaigned for liberal causes but has shifted after coming under sustained fire. Trump criticized Zuckerberg and threatened to put him in jail after accusing Meta of censoring conservative views.

But Zuckerberg, like other Big Tech leaders, has made efforts to court Trump, having traveled to Mar-a-Lago to meet the president-elect after the November election.

Deals

  • Several prominent hedge funds — including Millennium, D.E. Shaw, Bridgewater Associates and Ken Griffin’s Citadel — reported double-digit returns last year. (Reuters)

  • Hindenburg Research, the activist short-seller, announced a bet against Carvana, accusing the used-car sales platform of accounting manipulation. (CNBC)

Politics and policy

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  • President-elect Donald Trump picked Ken Kies, a longtime tax lobbyist for clients including Microsoft, as the Treasury Department’s assistant secretary for tax policy. (Bloomberg)

  • “How Silicon Valley won a powerful House committee” (Politico)

Best of the rest

  • The U.S. surgeon general, Vivek Murthy, called for cancer warnings to be placed on alcoholic beverages; doing so would require Congress to act, however. (NYT)

  • Richard Easterlin, an economist whose work challenged the assumption that more money always leads to more happiness, died Dec. 16. He was 98. (NYT)

  • “The Rise Of Big Potato” (The Lever)

We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com.

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Commentary: How a custody fight over an old dog showed why lawyers should never trust AI to tell the truth

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Commentary: How a custody fight over an old dog showed why lawyers should never trust AI to tell the truth

The seemingly limitless proliferation of cases in which lawyers have been caught letting fictitious AI-generated legal citations contaminate their briefs continues to amaze.

That’s not only because judges are fining more lawyers for their laziness, but because the publicity about these embarrassments has been inescapable.

Here’s one involving a dog named Kyra.

She’s a 16-year-old Labrador retriever who became the target of a nasty custody fight between a California couple after the dissolution of their domestic partnership. In the course of the lawsuit, one lawyer published two AI-fabricated citations in a filing. The opposing law firm didn’t catch the flaw and cited the same fake cases in its filings, including in a court order signed by a judge.

Most lawyers grew up in a time when you could expect the other side to spin and even to lie about the record some of the time, but just lying or making a mistake about the existence of a case was basically unheard of up until a few years ago.

— Eugene Volokh, UCLA law school

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The case of Joan Pablo Torres Campos vs. Leslie Ann Munoz also points to how AI, touted worldwide as a labor-saving technology, has actually increased the workload in some trades and professions, like lawyering. For litigators, it has created a new imperative: ferreting out citations that have been fabricated by AI bots in their own court filings — and their adversaries’.

I’ve written before about the proliferation of AI-generated fabrications infiltrating legal filings and even legal rulings, despite the advice drilled into the heads of even law students about making sure that their citations to precedential cases are accurate. But the wave keeps building: A database of AI hallucinations maintained by the French researcher Damien Charlotin now numbers 1,174 cases, of which some 750 are from U.S. courts.

That’s almost certainly a conservative count. Most AI fabrications may not even come to the attention of litigants or judges, especially in state courts.

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“For every case that talks about this, my guess is that there are many that aren’t visible,” says Eugene Volokh of UCLA law school and the Hoover Institution, who keeps a weather eye on AI-related courthouse developments. He believes there may be thousands escaping notice.

AI has introduced mistakes that were never seen in the past. “Most lawyers grew up in a time when you could expect the other side to spin and even to lie about the record some of the time, but just lying or making a mistake about the existence of a case was basically unheard of up until a few years ago,” Volokh told me. “That’s because there would be no source of hallucinations — maybe you’d get the citations slightly wrong or you mischaracterized or misquoted them, but to talk about a case that doesn’t exist — that didn’t happen. Now it happens a lot.”

The judiciary is getting increasingly nervous about AI fabrications becoming part of the judicial record. “Reliance on fake cases…seriously undermines the integrity of the outcome and erodes public confidence in our judicial system,” an appelate judge stated.

Therefore, he added, “it is imperative for both the court and the parties to verify that the citations in all orders are genuine….This is especially vital with the increasing incidence of hallucinated case citations generated by AI tools.”

Judges are still reluctant to bring down the hammer for AI-fabrications if lawyers acknowledge their fault and “throw themselves on the mercy of the court,” Volokh says. But they’re getting tougher on lawyers who deny their reliance on AI or try to shift blame.

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As recently as Monday, federal Magistrate Mark D. Clarke of Medford, Ore., ordered the attorneys representing the plaintiff in a civil lawsuit to pay more than $90,000 in legal fees, on top of an earlier sanction of $15,500 imposed on one of the lawyers, for incorporating 15 fabricated case citations and eight misquotations into case filings.

Clarke also dismissed the $29-million lawsuit, which arose from a ferocious dispute among the sibling heirs to an Oregon winery fortune, with prejudice, so it can’t be refiled. It was an extraordinary punishment, Clarke acknowledged — and the largest penalty imposed in any case in Charlotin’s database.

“In the quickly expanding universe of cases involving sanctions for the misuse of artificial intelligence, this case is a notorious outlier in both degree and volume,” Clarke wrote. Among other faults, he noted, the plaintiff’s lawyers never adequately fessed up to their wrongdoing. “If there was ever an ‘appropriate case’ to grant terminating sanctions for the misuse of artificial intelligence,” he wrote, “this is it.”

That brings us back to the custody battle over Kyra. The case originated in 2024, two years after a family court judge in San Diego dissolved the domestic partnership of Joan Torres Campos and Munoz. The dissolution order allowed them to keep their own property, but didn’t mention the dog, who lived with Munoz.

Torres Campos subsequently sought shared custody of Kyra and visitation rights. (Pet custody battles have long been a cultural fixture: Film aficionados might recognize this case’s similarity to the custody fight over the wire-haired terrier Mr. Smith in the 1937 Cary Grant/Irene Dunne vehicle “The Awful Truth,” surely the funniest movie ever made by Hollywood.)

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Munoz rejected Torres Campos’ request, arguing that he didn’t really care about the dog, but only aimed to harass her. A family court judge sided with her, but Torres Campos appealed.

In her initial reply to Torres Campos, Munoz’s lawyer, Roxanne Chung Bonar, cited California cases from 1984 and 1995 that she said supported her client’s refusal to grant visitation rights.

Both case citations were fictitious. The 1984 case, Marriage of Twigg, didn’t exist at all; Bonar’s citation pointed to a criminal case that had “nothing to do with pets or custody determinations,” California Appellate Judge Martin N. Buchanan wrote for a unanimous three-judge panel, upholding the family court judge . The second reference was to Marriage of Teegarden, which was handed down in 1986, not 1995, and also had nothing to do with the issue at hand.

Things only got more complicated from there. Torres Campos’ lawyer, in a reply brief and a subsequent proposed court order, didn’t mention that Twigg and Teegarden were fabricated cases, perhaps because the lawyer hadn’t checked the references personally. The family court judge signed the proposed order, including the fake citations, resulting on their infiltration into the official record. (Although Torres Campos’ lawyer drafted the proposed order, it actually rejected his lawsuit.)

It was only in the course of appealing the family court ruling did Torres Campos’ lawyer mention that the two cited precedents were “invented case law.”

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There was one more turn of the screw: In responding to Torres Campos’ appellate filing, Bonar “doubled down,” Buchanan wrote. Bonar insisted that Twigg was a “valid, published precedent” and added three more purported citations to the case. All were “just as phony as the original citation,” Buchanan noted.

Bonar even taunted Torres Campos’ lawyer for his “failure to conduct basic legal research” to verify the ostensibly genuine precedents, adding that his “inability to locate them underscores the incompetence that led to his appeal’s dismissal.”

Where did these references come from? It turned out that the Twigg reference originally came from a Reddit article written by an Oregon blogger and animal rescuer who posts under the name “Sassafras Patterdale,” in which she cited the fictitious case in a post about pet custody battles. Munoz had received the article from a friend and passed it on to Bonar. Both of them assumed that everything in it was accurate.

According to the appellate ruling, the additional citations to Twigg don’t appear in the Reddit post. Bonar never explained where they came from. She did concede, however, that the fictitious citations “‘may have’ come from her use of AI tools,” Buchanan noted. He sanctioned her with a $5,000 fine, largely because she did not initially acknowledge that her citations were fake and tried to shift blame to her opposing counsel.

Although the appeals judges could have awarded the case to Torres Campos due to Bonar’s performance, they declined to do so — because Torres Campos’ lawyers hadn’t checked their opposing counsel’s citations themselves. At this stage, Munoz still has custody of the dog and the lawsuit is essentially over, according to Torres Campos’ attorney, David C. Beavens of San Diego.

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Beavens says he took the case because he hoped to use it to obtain judicial clarification of a state law enacted in 2019, which authorized courts to issue orders regarding the ownership and care of pets in divorce cases. The appellate judges, sidetracked by the AI issue, never touched on that. But Beavens says he agreed with the panel’s position AI fabrications have become such a problem in court that “we need to hold everyone accountable” — lawyers on both sides of a case and the judges as well.

Bonar told me that she was not challenging the sanction but declined to comment on it further.

I did ask Bonar if she had any advice for other lawyers tempted to use AI in their work. “Yes,” she said: “Verify all third-party sources.”

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FKA twigs sues ex-boyfriend Shia LaBeouf over ‘unlawful’ NDA

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FKA twigs sues ex-boyfriend Shia LaBeouf over ‘unlawful’ NDA

Singer-songwriter FKA twigs is suing her ex-boyfriend, actor Shia LaBeouf, claiming that he is trying to “silence” her from speaking out against sexual abuse through the use of an “unlawful” nondisclosure agreement.

The complaint, filed in Los Angeles Superior Court on Wednesday, seeks a court order to prohibit LeBeouf from enforcing sections of an NDA which Tahliah Barnett — the Grammy Award-winning singer’s legal name — says violates California law.

“Shia LaBeouf has tried to control Tahliah Barnett for the better part of a decade,” the filing states.

“This action was taken in response to Mr. LaBeouf’s attempt to bully and intimidate twigs through a frivolous and unlawful secret arbitration he filed against her in December in which he sought to extract money from her,” said the singer’s attorney Mathew Rosengart, national co-chair of media & entertainment litigation at Greenberg Traurig in Century City, in a statement.

Rosengart added that twigs “refuses to be bullied anymore. She is instead standing up for herself and other survivors of sexual abuse who have improperly been silenced. This is the unusual case that is not about money but about justice and upholding and enforcing California law and policy designed to protect survivors by nullifying illegal NDAs.”

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LaBeouf’s attorney Shawn Holley of Kinsella Holley Iser Kump Steinsapir denied the claims.

“When Ms. Barnett and Mr. LaBeouf both decided to resolve their differences and move on with their lives, no one forced her or ‘bullied’ her to stay silent,” Holley said in a statement.
“As a woman with agency, she decided to settle the case and accepted money to dismiss her lawsuit.”

The suit arises out of litigation that Barnett brought against LaBeouf in 2020, when she accused the actor of “physical, sexual, and mental abuse” during their relationship,” as well as “knowingly infect[ing]” Barnett with a sexually transmitted disease.” That case was settled last year.

In a response to the suit, the actor told the New York Times that “many of these allegations are not true.”

But he added, “I am not in the position to defend any of my actions. I owe these women the opportunity to air their statements publicly and accept accountability for those things I have done.”

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In the statement Thursday, Holley added that the claim of sexual battery “was disputed, as were the other claims made in Ms. Barnett’s lawsuit.”

Shia LaBeouf poses for photographers upon arrival at the premiere of the film “The Phoenician Scheme” at the 78th annual Cannes Film Festival May 18, 2025.

(Lewis Joly / Invision / AP)

According to the new lawsuit, LaBeouf filed a secret arbitration complaint and “improperly sought exorbitant monies” from Barnett last December, claiming she had breached their agreement by violating its nondisclosure provisions after she gave an interview to the Hollywood Reporter in October.

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In the interview, Barnett was asked if she felt safe and answered that as a woman of color in the entertainment industry, she “wouldn’t feel safe” and discussed her involvement with organizations that support survivors, saying, “I think it’s less about me at this point and more about looking forward. Just, you know, moving on with my life.”

The agreement Barnett reached with LaBeouf “contained a deficient and unlawful NDA that is unenforceable,” under California’s Stand Together Against Non-Disclosure Act, according to the complaint. The law forbids NDAs from being used to silence victims of sexual misconduct.

“As the California Legislature has made clear, survivors should have the right to tell their stories without fear or coercion, and California law does not and must not allow abusers and bullies to silence them through secret agreements containing unconscionable, unlawful gag orders,” the complaint states.

The lawsuit further alleges that while LaBeouf has sought to prohibit Barnett from talking about her abuse, he has “repeatedly brought up his relationship with Ms. Barnett—on his own and without being directly asked about her—materially breaching the very confidentiality provisions that he had just contended were fully enforceable against Ms. Barnett.”

While the actor agreed to drop the arbitration in February, he has “refused to acknowledge, however, that the NDA provisions are illegal and unenforceable,” the filing states.

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The latest round in LaBeouf’s legal battle with Barnett comes just weeks after a New Orleans judge ordered the actor to begin substance abuse treatment and undergo weekly drug testing after he was arrested on suspicion of assaulting two men in the city’s French Quarter. LaBeouf was also required to post $100,000 bond as part of the conditions of his release. He was charged with two counts of simple battery, the Associated Press reported.

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Warner shareholders to vote on Paramount takeover

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Warner shareholders to vote on Paramount takeover

Warner Bros. Discovery shareholders will soon render a verdict on Hollywood’s biggest merger in nearly a decade.

Warner has set an April 23 special meeting of stockholders to vote on the company’s proposed sale, for $31-a-share, to the Larry Ellison family’s Paramount Skydance.

The $111-billion deal is expected to reshape the entertainment industry by combining two historic film studios, dozens of prominent TV networks, including CBS, HBO, HGTV and Comedy Central, streaming services and two news organizations, CNN and CBS News. The tie-up would give Paramount such beloved characters as Batman, Wile E. Coyote, and Harry Potter, television shows including “Hacks,” and “The Pitt,” and a rich vault of movies that includes “Casablanca,” and “One Battle After Another.”

The $31-a-share offer represents a 63% increase over Paramount Chairman David Ellison’s initial $19-a-share proposal for the company in mid-September, and a 147% premium over Warner’s stock’s trading levels prior to news of Ellison’s interest.

“This transaction is the culmination of the Board’s robust process to unlock the full value of our world-class portfolio,” Warner Bros. Discovery Chief Executive David Zaslav said Thursday in a statement. “We are working closely with Paramount to close the transaction and deliver its benefits to all stakeholders.”

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Paramount hopes to finalize the takeover by September. It has been working to secure the blessing of government regulators in the U.S. and abroad.

Should those regulatory deliberations stretch beyond September, Paramount will pay shareholders a so-called “ticking fee” — an extra 25 cents a share for every 90-day-period until the deal closes.

The transaction will leave the combined company with nearly $80-billion in debt, a sum that experts say will lead to significant cost cuts.

Paramount Skydance Chairman and CEO David Ellison attends President Trump’s State of the Union address three days before clinching his hard-fought Warner Bros. Discovery deal.

(Mark Schiefelbein / Associated Press)

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For weeks it appeared that Netflix would scoop up Warner Bros.

Netflix initially won the bidding war in early December with a $27.75 offer for the studios and streaming services, including HBO Max. But Ellison refused to throw in the towel. He and his team continued to lobby shareholders, politicians and Warner board members, insisting their deal for the entire company, including the cable channels, was superior and they had a more certain path to win regulatory approval.

The Ellison family is close to President Trump. This week, Trump named Larry Ellison to a proposed White House council on technology issues, including artificial intelligence.

Warner’s board, under pressure, reopened the bidding in late February to allow Paramount to make its case. Warner board members ultimately concluded that Paramount’s bid topped the one from Netflix and the streamer bowed out. Paramount paid a $2.8-billion termination fee to Netflix and signed the merger agreement on Feb. 27.

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Warner’s board is advising its shareholders to approve the Paramount deal. Failure to cast a vote will be the same as a no-vote, according to the company’s proxy.

Warner’s largest shareholders include the Vanguard Group, BlackRock, Inc. and State Street Corp.

Zaslav has significant stock and options holdings, worth about $517 million at the deal’s close, according to the proxy.

The regulatory filing also disclosed that a mysterious bidder had surfaced at the auction’s 11th hour.

A firm called Nobelis Capital, Pte., reportedly based in Singapore, alerted Warner on Feb. 18 that it was willing to pay $32.50 a share in cash.

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The firm said it had placed $7.5 billion into an escrow account. However, Warner’s bankers “could not find the purported deposit at J.P. Morgan,” according to the proxy. And there was no evidence that Nobelis had any assets or any “equity or debt financing” lined up, Warner said, adding that it “took no further action with respect to the Nobelis proposal.”

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