Politics
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.
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.
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.”
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.
“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.
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.”
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.
“These targets are both ambitious from an operational perspective and would make Hollywood weaker, not stronger,” the Warner board wrote.
Politics
WATCH: Dana White drops 2028 hints while raving about his favorite Trump cabinet secretary
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Political heavyweight Dana White, whose endorsement of President Donald Trump was instrumental in his 2024 victory, is now hinting that he may jump back into presidential politics in 2028 because he has “become really close” with Secretary of State Marco Rubio.
This comes as White’s UFC announced a rare “sports diplomacy” partnership with the State Department this week. White and Rubio signed a memorandum of understanding establishing the partnership last month, according to a UFC statement. The league said that as part of the agreement, UFC athletes and coaches will serve as “sports ambassadors” for young athletes around the world through the State Department’s Sports Envoy Program.
White was explicitly asked by OutKick’s Tomi Lahren, whether there are any leaders he is looking at for 2028, to which he responded, “It’s funny, As I was, leading up to the White House fight, doing all this media, you know, a lot of the left media was saying to me, ‘So, you’re out of politics after this, right?’ And I can’t remember who it was that I said it to but … I said, ‘I’ve become really close to Rubio.’ We’ve become really close.”
“People are asking me if I’m going to get out of politics when the president leaves and I just said, ‘I’ve become very close to Rubio.’ He and I have become friends,” he emphasized.
RUBIO ANNOUNCES FRAMEWORK DEAL BETWEEN ISRAEL AND LEBANON AS EXPERTS WARN IRAN WILL FIGHT TO SABOTAGE IT
UFC President and CEO Dana White and US Secretary of State Marco Rubio shake hands as htey participate in a Memorandum of Understanding signing ceremony at the State Department in Washington, DC, on June 11, 2026. (Brendan SMIALOWSKI / AFP via Getty Images)
White said that Rubio “is a great guy, I like him,” adding, “He’s smart, I like the way he handles himself.”
He also said, “I’ve met his sons, and I like his kids and, you know, so, never say never.”
Pressed on whether Rubio is his official pick to succeed Trump as president, White clarified, “I’m not saying I’m picking.” He noted that he also likes Vice President JD Vance, who, alongside Rubio, is a rumored 2028 presidential frontrunner.
“JD is a great guy too,” said White, adding, “It’s a tricky situation, and I don’t know enough about politics to even comment on that, but, yeah, I don’t know, but it’s not a bad thing to have two strong candidates.”
Rubio and Vance are the two Republicans most discussed as possible successors to Trump. While Rubio ran for president in 2016, he has expressed support for Vance, calling him a “close friend” and saying the vice president “would be a great nominee if he decides he wants to do that.”
VIRAL MARCO RUBIO CLIP ON HIS VISION FOR AMERICA SPARKS MORE 2028 SPECULATION
Vice President JD Vance speaks during a visit to ALTA Refrigeration Inc., Aug. 21, 2025, in Peachtree City, Georgia. (Brynn Anderson/The Associated Press)
Though White stopped short of issuing a full-throated endorsement of Rubio, his partnership with the State Department through UFC underscores the high regard he appears to have for the secretary.
This is the first time the UFC has entered into such a partnership with the State Department. The NFL, which entered into a similar agreement in January, is the only other major sports organization to have signed such a formal agreement with the department.
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UFC Chief Operating Officer Lawrence Epstein said the league is “thrilled” about the partnership. He said it would allow the State Department and UFC to “work together to build bridges through community engagement.”
“We’re excited to join this program, led by Secretary Rubio, as UFC is a truly global organization with athletes representing 75 countries. We can’t wait to get started later this year,” said Epstein.
VANCE TAKES LEAD SELLING TRUMP’S IRAN GAMBLE AS RUBIO, HEGSETH AND RATCLIFFE CEDE SPOTLIGHT ON FRAGILE DEAL
President Donald Trump speaks with Secretary of State Marco Rubio and UFC CEO and President Dana White during UFC 327 at Kaseya Center on April 11, 2026 in Miami, Florida. (Julia Demaree Nikhinson – Pool / Getty Images)
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In turn, Rubio spoke very highly of the UFC, saying it “has become a global phenomenon by embracing values that resonate far beyond the Octagon: excellence, discipline, opportunity, and meritocracy.”
The secretary said the State Department is “proud” to launch the sports diplomacy partnership with UFC and to “continue growing the sport of MMA.”
Politics
Commentary: On Skid Row, it’s been decades of frustration. Will the next mayor have a plan?
On my way through Skid Row to meet up with Estela Lopez, things looked pretty much as they did when I spent time there more than 20 years ago and first heard the promises that things would be better soon.
Tents lined some of the sidewalks, making them unpassable. Some people wore the damage of physical or mental disease, addiction, poverty, or all of the above. Outreach workers with ID lanyards strode through the trash-strewn landscape like lifeguards working against endless tides of fresh emergencies.
When I arrived at Lopez’s office in the 700 block of Crocker Street, where she runs a business improvement district on behalf of 600 or so beleaguered merchants, she had just completed a tour of the neighborhood with John McKinney, a candidate for city attorney.
She held a note card in her hand and shared some numbers, telling McKinney that by her latest count, 131 of the 702 streetlights in the district were out, 27 children were living on Skid Row, and 72 RVs were parked in the area.
“I came out here because I think this symbolizes the greatest failure in government,” McKinney said. “I think it’s the result of bad law and bad policy. I think it’s the result of a lack of leadership and indifference to the way people are living out here. To me, it’s completely untenable.”
But will anything ever change?
It’s a question two people in particular need to address, and I’ll get to that in a minute.
A lot of people I trust and admire work tirelessly to make a difference on Skid Row, and they’re always eager to share the success stories of those who move through and move on. (I’ve got a column on that coming up soon.)
The long-standing problem is that Skid Row is both a social service center and a mecca of drugs and other vices, with traps on every block. And so it’s a neighborhood at war with itself, with some viewing Skid Row as one of the largest recovery centers in the country while others see a snapshot of social collapse.
Estela Lopez has reached out to me several times over the years. About illegal dumping. Typhus. Calls to City Hall that don’t get answered. About the relentless plague of fires, overdoses and assaults.
“Can you imagine, in 24 years, how many people I’ve seen dead on these streets?” Lopez asked me near her office last week.
Estela Lopez runs a business improvement district on behalf of 600 or so beleaguered merchants.
(Genaro Molina / Los Angeles Times)
When the local post office closed recently in part because of security issues, Lopez told The Times’ Melissa Gomez that “we have reached a point in this city where we are unable to address criminal activity. … It’s surrender.”
We walked to the corner of 8th Street, where paramedics had just pulled away from a medical emergency. Cars and pedestrians stopped at tents for brief transactions, leaving little doubt as to the nature of the business being conducted.
We passed a caged dog and saw a puppy on a short leash being loaded into a vehicle. There’s a lot of talk about dogs being bred and sold, and Lopez said she’s seen evidence of animals being mistreated.
On 7th Street we passed the charred residue of a recent fire. A half block east, four men were slumped on the sidewalk, hitting pipes. Lopez gets calls from exasperated merchants dealing with vandalism and with people blocking their storefronts.
“I’ve never seen so many people overdose right here,” said Sergio Moreno, who runs a check-cashing business and said his family has been in business going back to the ‘70s. He said he’s seen paramedics use naloxone to revive opioid users, only to see the same people go down again just days later.
“How can you run a business?” asked Moreno, who chairs the board of the business improvement district Lopez runs. “This business is our life. This is how we got through school, this is how we put our kids through school.”
And yet despite paying city taxes and BID fees, Moreno said, problems persist and his customers fear for their safety.
Dr. Susan Partovi, a street medic for 22 years, has been advocating for more proactive intervention for those in obvious distress. Partovi told me she recently saw a man rise from a gutter, pull down his pants and defecate in front of her. She called to get help for him but said neither paramedics nor police determined him to be gravely disabled.
Lopez walks past residents of Skid Row last week. By her latest count, 131 of the 702 streetlights in the district were out, 27 children were living on Skid Row, and 72 RVs were parked in the area.
(Genaro Molina / Los Angeles Times)
“We have become complacent with having people lying in the gutter, having diarrhea, speaking nonsensically and putting their lives at risk,” said Partovi, whom I once accompanied as she administered long-acting anti-psychotic injections, arguing that people need clear heads to make better choices.
One sore point for Lopez is the Skid Row Care Campus in the 400 block of Crocker Street, which opened a little more than a year ago and offers all sorts of social services, meds that reduce drug cravings, and supplies that allow for safe use of drugs.
Lopez said she understands the theory of harm reduction: Engage people with a goal of getting them into treatment and back on track. But she wonders how successful such programs are, and argues that they become magnets for lawlessness.
As we talked, a young man approached and told Lopez he’d seen her airing her grievances on TV news.
“I’m wondering, what would be your solution?” he asked.
“I would hope that people could return to life in sobriety,” Lopez responded.
The man said he is “trying to elevate” himself, but that he’d been on a waiting list for housing for six months.
Lopez is tired of being on a waiting list, too.
“If something is working down here,” she told me, “you can’t prove it by me.”
Progress is undeniable, said Sieglinde von Deffner, a social worker and Skid Row coordinator for the Los Angeles County Department of Homeless Services and Housing. But given the “highly vulnerable” nature of the population, “the need is colossal,” she said.
A man stands among his belongings along 7th Street in Skid Row in downtown Los Angeles.
(Genaro Molina / Los Angeles Times)
“I have not yet met someone here who doesn’t want housing of some kind. We just don’t have enough affordable housing for everyone,” Von Deffner said, and long-term homelessness makes people harder to reach. “Now, if we could just stop the inflow.”
Dennis Culhane, a University of Pennsylvania professor who researches homelessness and served as an L.A. County consultant, said there are other ways to get people indoors than investing billions of dollars in new housing that takes years to build. Culhane said single adults who are not veterans, including the elderly and disabled, constitute a majority of the homeless population. But assistance is scarce.
“It’s like you have a famine, and you’ve only got food for 15% of the people,” Culhane said.
Rapid rehousing is critical for the newly homeless, he said. But it can take two years for them to qualify for Social Security disability, and once they do, the $1,000 a month “is completely deficient in the face of rising rents.”
Culhane recommends faster approval of SSI benefits and supplementing that income with additional sources of rental assistance. He believes there are enough vacancies at the low end of the housing market to make a sizable dent in homelessness without new construction.
Judy Mauricio, 65, who has been homeless for nine years, rests inside her tent next to her walker. She says her drug addiction has kept her on the street. She receives state disability funds and says she has cancer.
(Genaro Molina / Los Angeles Times)
As campaign season warms up, I’d like to know if Mayor Karen Bass and her challenger, Councilmember Nithya Raman, agree.
The mayor of L.A. is limited by a power split with the City Council, and the county oversees most addiction and mental health services. But Skid Row sits just a few blocks from the seat of city authority, and nobody has more power or responsibility to address the decades-long human catastrophe on Skid Row than the mayor.
Estela Lopez and the merchants deserve better. The people on the street deserve better. Thousands of housed residents deserve better.
Does Bass have a plan other than what’s currently in place? Does Raman have a better one?
If so, I’d like to hear the details, and I’m available.
steve.lopez@latimes.com
Politics
EXCLUSIVE: FBI adds alleged COVID fraudster accused of taking $5M from kids’ meal program to Most Wanted list
FBI makes first arrest from its ‘most wanted fraudsters’ list
FBI Director Kash Patel announces the first arrest on the “Most Wanted Fraudsters” list. Said Ereg, a Minneapolis man, is accused of stealing over $4.2 million from a federal child nutrition program during the COVID-19 pandemic. Minnesota Senate candidate Michele Tafoya emphasizes the need for accountability for fraudulent activities.
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EXCLUSIVE: The FBI is adding Fahad Mohamed Nur to its Most Wanted Fraudsters List, accusing the Minnesota businessman of allegedly stealing more than $5 million that was intended to feed children during the COVID-19 pandemic.
Nur has been on the run since 2022 and is wanted for his alleged role in a fraud scheme that exploited Minnesota’s Federal Child Nutrition Program during the COVID-19 pandemic, according to the FBI. The bureau alleges he owned a vendor and purported food supplier that received more than $5 million in fraudulent program funds by submitting fake invoices before laundering the proceeds.
The Bureau believes Nur has ties to Somalia and may currently be living there.
The FBI is offering a reward of up to $150,000 for information leading to Nur’s arrest and conviction.
OWNER OF DAYCARE IN VIRAL NICK SHIRLEY VIDEO CHARGED IN $4.6M DAYCARE FRAUD SCHEME, PROSECUTORS SAY
Fahad Mohamed Nur has been on the run since 2022 and may be in Somalia, according to the FBI. (Federal Bureau of Investigation)
Nur is the latest addition to the FBI’s Most Wanted Fraudsters List, which officials say has already resulted in the arrests of two fugitives within weeks of its launch.
“Under President Trump’s and Vice President Vance’s leadership with the White House Task Force to Eliminate Fraud, the FBI’s historic ‘Most Wanted Fraudsters list’ has already seen tremendous success – with two subjects brought to justice in a matter of weeks, apprehended out of Somalia and the Philippines,” FBI Director Kash Patel said in a statement to Fox News Digital.
Patel said the early arrests demonstrate that the FBI is aggressively pursuing fugitives accused of stealing from American taxpayers.
FBI ADDS 2 FUGITIVES TO ‘MOST WANTED FRAUDSTERS’ LIST AMID HISTORIC $6.5B HEALTHCARE TAKEDOWN: PATEL
FBI Director Kash Patel conducts a news conference at the Department of Justice on Thursday, December 4, 2025. (Tom Williams/CQ-Roll Call, Inc via Getty Images)
“Our newest subject – Fahad Mohamed Nur – has been on the run since 2022 for allegedly stealing over $5 million from a child nutrition program in Minnesota.”
Patel added: “Collectively, the Task Force has already uncovered more than $13 billion in fraud, and the rapid success of the Most Wanted Fraudsters List should show all Americans that this FBI will [be] at the forefront pursuing the worst of the worst who stole from hardworking American taxpayers.”
DR OZ WARNS MEDICARE SCAMMERS ARE STEALING BILLIONS — AND YOUR PERSONAL INFORMATION COULD BE NEXT
Federal agents enter an office building as a search warrant is executed at Ultimate Home Health Services over potential Medicaid fraud, on December 18, 2025 in Bloomington, Minnesota, United States. (Christopher Juhn/Anadolu via Getty Images)
Federal officials say the investigation is part of a broader government effort targeting pandemic-era fraud.
“The Department’s robust partnership with the FBI and the White House Task Force to Eliminate Fraud has already delivered historic results. That partnership grows even stronger today with the addition of this latest subject to the Most Wanted Fraudsters list,” said Acting Attorney General Todd Blanche. “President Trump has made it clear: Fraudsters no longer have a safe haven in America. Law enforcement will continue to use every tool at its disposal to bring those who steal from American taxpayers to justice.”
The White House Task Force to Eliminate Fraud, led by Vice President JD Vance, has already uncovered more than $13 billion in fraud, according to the FBI.
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Anyone with information about Nur’s whereabouts is urged to contact the FBI at 1-800-CALL-FBI, their local FBI office, the nearest U.S. Embassy or Consulate, or submit a tip online at tips.fbi.gov.
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