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Warner Bros. rejects Paramount’s hostile bid, accuses Ellison family of failing to put money into the deal

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Warner Bros. rejects Paramount’s hostile bid, accuses Ellison family of failing to put money into the deal

Warner Bros. Discovery has sharply rejected Paramount’s hostile offer, alleging the $108-billion deal carries substantial risks because the Larry Ellison family has failed to put real money behind its bid for Warner’s legendary movie studio, HBO and CNN.

Paramount “has consistently misled WBD shareholders that its proposed transaction has a ‘full backstop’ from the Ellison family,” Warner Bros. Discovery’s board wrote Wednesday in a letter to its shareholders filed with the Securities & Exchange Commission.

“It does not, and never has,” the Warner board said.

Warner’s board voted unanimously that Paramount’s hostile bid “was not in the best interests” of its shareholders.

For Warner, what was missing was a clear declaration from Paramount that the Ellison family had agreed to commit funding for the deal. Paramount last week told Warner stockholders that it would pay them $30 a share — or $78 billion for the entire company. Paramount also has said it would absorb Warner’s debt, making the overall deal worth $108-billion.

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A Paramount representative was not immediately available for comment Wednesday.

The Warner auction has taken several nasty turns. Last week, Paramount launched its hostile takeover campaign for Warner after losing the bidding war to Netflix. Warner board members on Dec. 4 had unanimously approved Netflix’s $82.7-billion deal for the Warner Bros. film and television studios, HBO and HBO Max.

In its letter, the Warner board reaffirmed its support for Netflix’s $27.75 a share proposal, saying it represented the best deal for shareholders. Warner board members urged investors not to tender their shares to Paramount.

Board members said they were concerned that Paramount’s financing appeared shaky and the Ellison family’s assurances were far from ironclad. Instead Paramount’s proposal contained “gaps, loopholes and limitations,” Warner said, including troubling caveats, such as saying in documents that Paramount “reserve[d] the right to amend the offer in any respect.”

The Warner board argued that its shareholders could be left holding the bag.

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Paramount Chief Executive David Ellison has argued his $78-billion deal is superior to Netflix’s proposal.

(Evan Agostini / Evan Agostini/invision/ap)

Paramount Chairman David Ellison has championed Paramount’s strength in recent weeks saying his company’s bid for all of Warner Bros. Discovery, which includes HBO, CNN and the Warner Bros. film and television studios, was backed by his wealthy family, headed by his father, Oracle co-founder Larry Ellison, one of the world’s richest men.

Ellison sent a letter last week to Warner shareholders, asking for their support. The tech scion wrote his family and RedBird Capital Partners would be strong stewards of Warner’s iconic properties, which include Batman, Harry Potter, Scooby-Doo, “The Lord of the Rings,” and HBO’s “Game of Thrones.”

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Ellison wrote that Paramount delivered “an equity commitment from the Ellison family trust, which contains over $250 billion of assets,” including more than 1 billion Oracle shares.

In regulatory filings, Paramount has disclosed that, for the equity portion of the deal, it planned to rely on $24 billion from sovereign wealth funds representing the royal families of Saudi Arabia, Qatar and Abu Dhabi as well as $11.8 billion from the Ellison family (which also holds the controlling shares in Paramount).

This week, President Trump’s son-in-law Jared Kushner’s Affinity Partners private equity firm pulled out of Paramount’s financing team.

Paramount’s bid would also need more than $60 billion in debt financing.

Paramount has made six offers for Warner Bros., and its “most recent proposal includes a $40.65 billion equity commitment, for which there is no Ellison family commitment of any kind,” the Warner board wrote.

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“Instead, they propose that [shareholders] rely on an unknown and opaque revocable trust for the certainty of this crucial deal funding,” the board said, noting that a revocable trust could always be changed. “A revocable trust is no replacement for a secured commitment by a controlling stockholder,” the board’s letter said.

Throughout the negotiations, Paramount, which trades under the PSKY ticker, failed to present a solid financing commitment from Larry Ellison — despite Warner’s bankers telling them that one was necessary, the board said.

“Despite … their own ample resources, as well as multiple assurances by PSKY during our strategic review process that such a commitment was forthcoming – the Ellison family has chosen not to backstop the PSKY offer,” Warner’s board wrote.

David Ellison has insisted Paramount’s offer of $30 a share was superior to Netflix’s winning bid.

Paramount wants to buy all of Warner Bros. Discovery, while Netflix has made a deal to take Warner’s studios, its spacious lot in Burbank, HBO and HBO Max streaming service.

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Warner plans to spin off its linear cable channels, including CNN, HGTV, Cartoon Network and TBS, early next year.

Paramount’s lawyers have argued that Warner tipped the auction to favor Netflix.

Paramount, which until recently enjoyed warm relations with President Trump, has long argued that its deal represents a more certain path to gain regulatory approvals. Trump’s Department of Justice would consider any anti-trust ramifications of the deal, and in the past, Trump has spoken highly of the Ellisons.

However, Warner’s board argued that Paramount might be providing too rosy a view.

“Despite PSKY’s media statements to the contrary, the Board does not believe there is a material difference in regulatory risk between the PSKY offer and the Netflix merger,” the Warner board wrote. “The Board carefully considered the federal, state, and international regulatory risks for both the Netflix merger and the PSKY offer with its regulatory advisors.”

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The board noted that Netflix agreed to pay a record $5.8 billion if its deal fails to clear the regulatory hurdles.

Paramount has offered a $5 billion termination fee.

Should Warner abandon the transaction with Netflix, it would owe Netflix a $2.8 billion break-up fee.

Warner also pointed to Paramount’s promises to Wall Street that it would shave $9 billion in costs from the combined companies. Paramount is in the process of making $3 billion in cuts since the Ellison family and RedBird Capital Partners took the helm of the company in August.

Paramount has promised another $6 billion in cuts should it win Warner Bros.

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“These targets are both ambitious from an operational perspective and would make Hollywood weaker, not stronger,” the Warner board wrote.

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Appeals court declares DC ban on certain gun magazines unconstitutional

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Appeals court declares DC ban on certain gun magazines unconstitutional

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An appeals court struck down a local law in the District of Columbia that banned gun magazines containing more than 10 bullets, describing the measure as unconstitutional. 

The ruling Thursday from the District of Columbia Court of Appeals also reversed the conviction of Tyree Benson, who was taken into custody in 2022 for being in possession of a handgun with a magazine that could contain 30 bullets, according to The New York Times. 

“Magazines capable of holding more than 10 rounds of ammunition are ubiquitous in our country, numbering in the hundreds of millions, accounting for about half of the magazines in the hands of our citizenry, and they come standard with the most popular firearms sold in America today,” Judge Joshua Deahl wrote on behalf of the two-judge majority in the three-judge panel.   

“Because these magazines are arms in common and ubiquitous use by law-abiding citizens across this country, we agree with Benson and the United States that the District’s outright ban on them violates the Second Amendment,” he added.

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A salesperson holds a high capacity magazine for an AR-15 rifle at a store in Orem, Utah, in March 2021.  (George Frey/Bloomberg via Getty Images)

“This appeal presents a Second Amendment challenge to the District’s ban on firearm magazines capable of holding ‘more than 10 rounds of ammunition.’ Appellant Tyree Benson argues that ban contravenes the Second Amendment so that his conviction for violating it should be vacated,” Deahl also wrote. “The United States, which prosecuted Benson in the underlying case and defended the ban’s constitutionality in the initial round of appellate briefing, now concedes that this ban violates the Second Amendment. The District of Columbia, which is also a party to this appeal, continues to defend the constitutionality of its ban.” 

“We therefore reverse Benson’s conviction for violating the District’s magazine capacity ban. And because Benson could not have registered, procured a license to carry, or lawfully possessed ammunition for his firearm given that it was equipped with a magazine capable of holding more than 10 rounds, we likewise reverse his convictions for possession of an unregistered firearm, carrying a pistol without a license, and unlawful possession of ammunition,” Deahl said.

Chief Judge Anna Blackburne-Rigsby, the judge who dissented, wrote that, “The majority bases its common usage analysis on ownership statistics that show only that magazines holding 11, 15, or 17 rounds of ammunition are in common use.” 

GUN RIGHTS ON PRIVATE PROPERTY DEBATED AT SUPREME COURT

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Magazines at Norm’s Gun & Ammo shop in Biddeford, Maine, in April 2013. From left, the first two are high capacity magazines for handguns, an AK-47 magazine, an AR-15 magazine and an SKS magazine.   (Shawn Patrick Ouellette/Portland Press Herald via Getty Images)

“The majority, however, fails to contend with the reality that these statistics do not support the conclusion that the particularly lethal 30-round magazine, such as the one Mr. Benson possessed here, is in common use for self-defense. It simply is not,” she added.

The District of Columbia can now appeal the decision to the Supreme Court, or ask the local appeals court to take another look at the ruling with a larger panel of judges, according to the Times. 

High-capacity rifle magazines are removed from a display at Freddie Bear Sports in January 2023 in Tinley Park, Illinois. (Scott Olson/Getty Images)

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The newspaper also reported that in a previous case, the U.S. Court of Appeals for the District of Columbia upheld the constitutionality of the local law surrounding gun magazine sizes. It’s unclear how the two rulings will interact. 

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Contributor: The stars align for Democrats in Texas. Trump is helping them

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Contributor: The stars align for Democrats in Texas. Trump is helping them

If Democrats expect to flip a U.S. Senate seat in Texas, they’ll need all the stars to align. This almost never happens, because politics has a way of scrambling the constellations. But on Tuesday, the first star blinked on.

I’m referring to state Rep. James Talarico’s victory over Rep. Jasmine Crockett in the Democratic primary. Most political prognosticators agree that Talarico, an eloquent young Democrat who speaks openly about his Christian faith, is their best hope in a red state that Donald Trump won by 14 points.

The second star was Crockett’s conciliatory concession — far from a foregone conclusion after a nasty primary — in which she pledged to “do my part,” adding that “Texas is primed to turn blue, and we must remain united because this is bigger than any one person.”

The third star — a vulnerable Republican opponent — has not yet appeared over the Texas sky, although forecasters say it might.

Most observers agree that scandal-plagued Atty. Gen. Ken Paxton would be beatable in the general election, while incumbent Sen. John Cornyn would present a much tougher challenge. Cornyn is the kind of steady, conventional politician who tends to win elections, and so, of course, modern voters are extremely suspicious of him.

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In the GOP primary on Tuesday, Cornyn’s 42% share of the vote edged out Paxton by about a point. Unfortunately for Republicans, neither candidate garnered enough votes to avoid a May 26 runoff election.

Conventional wisdom suggests that when a majority of Republican voters choose someone other than the incumbent in the first round of voting, an even greater majority will inevitably break toward the challenger in the runoff. If that happens, Paxton would become the nominee, and Democrats would get their third star to align.

Even better for Democrats — a fourth star, so to speak — would be for this protracted runoff to become a “knife fight,” as one Texas Republican predicted, in which Paxton staggers out of the fight as the battered GOP nominee.

The only problem is that Republicans can see these stars aligning, too.

And while the Texas Senate seat matters a lot on its own, it matters even more in the context of nationwide midterm elections, in which a Texas win would help Democrats take back the Senate.

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Enter the cavalry — or, more accurately, President Trump, who is now entering a second war in the span of a week, this one a civil war in the Lone Star State.

The day after the primary, Trump announced that he would be “making my Endorsement soon, and will be asking the candidate that I don’t Endorse to immediately DROP OUT OF THE RACE!”

Reports suggest Trump may endorse Cornyn in order to save the seat for Republicans. But who knows? Trump is famously unpredictable. And it’s likely he admires Paxton’s ability to survive scandals that would have caused most normal politicians to curl up in the fetal position. As they say, “game recognizes game.”

Whomever he backs, conventional wisdom also says Trump should make his endorsement “soon,” as he promised. That would save Republicans a lot of time and money. But Trump currently has enormous leverage. Right now, people are coming to him, pleading for his support.

Do you think he wants to resolve that situation quickly?

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Me neither.

With Trump, you never know what you’re going to get. In 2021, he helped torpedo Republican Senate candidates David Perdue and Kelly Loeffler in Georgia, handing Democrats control of the Senate. The following year he backed football legend Herschel Walker in another Georgia Senate race, which did not exactly work out great. Democrat Raphael Warnock won and holds that seat, though Walker is now ambassador to the Bahamas so that’s something.

This is to say: Trump’s political assistance does not always assist.

It’s unclear whether Trump’s endorsement would be dispositive — and whether he could muscle the other Republican out of the primary race.

Paxton, for example, initially vowed to stay in the race, no matter what. (He later suggested he would “consider” dropping out if the Senate passes the SAVE America Act, a bill to require proof of citizenship to vote.)

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There’s also this: Trump’s endorsements tend to either be made out of vengeance or to pad the totals of an already inevitable winner, so his track record is probably overrated.

Case in point: While most of his endorsed candidates won their Texas elections, his endorsed candidate for agriculture commissioner lost reelection. And according to the Texas Tribune, “at least three Trump-endorsed candidates for Congress were headed to runoffs, one of them in a distant second place.”

Another issue is that Cornyn needs more than a perfunctory endorsement: He needs a clear, full-throated endorsement.

In a 2022 Missouri Senate race, Trump endorsed “ERIC,” which was awkward because two candidates named Eric were running.

More recently, he endorsed two rival candidates in the same 2026 Arizona gubernatorial race — like betting on both teams in the Super Bowl.

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This is all to say that the only thing standing between Texas Democrats and a rare celestial alignment may be the whims of the Republican Party’s one and only star.

Sure, establishment Republicans can beg Trump to quickly step in and settle the race, and maybe he will. But it’s entirely possible the president will find a way to blow up his party’s chances for holding the U.S. Senate — and there’s nothing they can do to stop him.

When you’re a star, they let you do it.

Matt K. Lewis is the author of “Filthy Rich Politicians” and “Too Dumb to Fail.”

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Video: President Fires Noem as Homeland Security Secretary

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Video: President Fires Noem as Homeland Security Secretary

new video loaded: President Fires Noem as Homeland Security Secretary

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President Fires Noem as Homeland Security Secretary

President Trump fired Kristi Noem, his embattled homeland security secretary, on Thursday and announced his plans to replace her with Senator Markwayne Mullin of Oklahoma.

“The fact that you can’t admit to a mistake which looks like under investigation is going to prove that Ms. Good and Mr. Pretti probably should not have been shot in the face and in the back. Law enforcement needs to learn from that. You don’t protect them by not looking after the facts.” “Our greatness calls people to us for a chance to prosper, to live how they choose, to become part of something special. Anyone who searches for freedom can always find a home here. But that freedom is a precious thing, and we defend it vigorously. You crossed the border illegally — we’ll find you. Break our laws — we’ll punish you.” “Did you bid out those service contracts?” “Yes they did. They went out to a competitive bid.” “I’m asking you — sorry to interrupt — but the president approved ahead of time you spending $220 million running TV ads across the country in which you are featured prominently?” “Yes, sir. We went through the legal processes. Did it correctly —” Did the president know you were going to do this?” “Yes.” “I’m more excited about just ready to get started. There’s a lot of work we can do to get the Department of Homeland Security working for the American people.”

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President Trump fired Kristi Noem, his embattled homeland security secretary, on Thursday and announced his plans to replace her with Senator Markwayne Mullin of Oklahoma.

By Jackeline Luna

March 5, 2026

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