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Lawfare's Grip on Hollywood Deals

Wall Street Journal US Business •
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The acquisition of Warner Bros. studio and TV business by David Ellison, son of Larry Ellison, faces challenges reminiscent of Elon Musk's forced acquisition of Twitter. Both deals became entangled in the ideological conflicts between Donald Trump and his opponents, and the 'woke' versus MAGA camps.

Musk positioned his Twitter pursuit as a stand for free speech, but the controversy surrounding Twitter's alleged influence on the 2016 and 2020 elections was a significant backdrop. Similarly, Ellison's potential merger of Warner Bros. with his Paramount studio business appears to be framed within these broader cultural and political battles.

Attorneys general are increasingly using antitrust law as a tool in these ideological disputes, targeting figures and movements associated with Trump and MAGA. This trend suggests that a company's perceived political alignment can now significantly impact the legal and regulatory scrutiny of its business transactions, adding another layer of complexity to high-stakes mergers and acquisitions in the entertainment industry.