David Ellison needs to come up with structural remedies the state AGs will accept: Rich Greenfield

Summary

Rich Greenfield discusses the Paramount-Warner Bros. Discovery merger impasse, arguing that legal merits no longer matter and that Paramount must propose structural remedies like selling major franchises and cable networks to satisfy state AGs, or face a $7 billion break fee. He outlines potential divestitures, notes the financial pain of low-multiple asset sales, and suggests there are buyers for linear TV assets despite cash flow concerns.

• Rich Greenfield says the merger's legal fight no longer matters and the June 4 deadline with a $7B break fee is the hard stop.
• He proposes Paramount must sell one studio lot, major IP franchises (e.g., Harry Potter, DC), catalog titles, and Turner networks (TBS, TNT, CNN).
• Divestitures would create another major studio and reduce Paramount's bargaining power in film and linear cable markets.
• Andrew Ross Sorkin raises cash flow concerns tied to bank lending documents, but Greenfield counters that Larry Ellison could inject more cash.
• Greenfield highlights buyers for linear assets at 3-5x EBITDA, citing Hearst's A&E deal and interest from Starz.
• Joe Kernen calls the antitrust case 'yesterday's battle,' noting real competition comes from Amazon, Netflix, Walmart, not legacy consolidation.
• Greenfield agrees but notes Paramount previously argued in court that streaming and linear are distinct markets, making reversal difficult.
• The conversation underscores that the merger's fate depends on a settlement, not court outcome, and that forced sales will significantly reduce synergies.