The Politics Episode: Paramount/WBD stalls, AI's charm offensive and Burnham's UK

In the "politics episode", Justin Lebbon and Ian Whittaker unpack the collision of politics and dealmaking across US and UK media — from the court-halted Paramount/Warner Bros Discovery merger to the AI charm offensive from Silicon Valley and a change of prime minister in Britain. Paramount/WBD on pause: A Northern District of California judge granted a temporary restraining order; Paramount agreed not to close until the court rules on the states' claims or 06/01/2027, whichever comes first. A political fight: 12 Democrat attorneys general, led by California and New York, plus the Writers' Guild, are lined up against the deal — even as the US administration and European Commission have cleared it. Follow the spread: With a $31 bid and WBD trading around $25.60, the market is pricing in a real chance the deal collapses; one commentator put it at 60%. Paramount's own shares are down ~20% in a month. The Ellison tech angle: Whittaker argues the deal's most interesting dimension is technological — the Ellisons potentially reshaping the combined content library into something more Netflix-like. AI as a vote issue: Why Musk and Zuckerberg are publicly championing AI — jobs fears and data-centre backlash are turning big tech into a political liability ahead of the US midterms. UK under Burnham: DSIT abolished and its responsibilities split; a cabinet-level AI minister (Kanishka Devayan) installed; expect more skepticism of Silicon Valley but subtler moves than Starmer's proposed social ban. ITV/Sky and Paramount at the CMA: Whittaker expects the ITV/Sky deal to proceed, wary of a "Project Kangaroo mark two", and doubts the UK would move to block Paramount without political cover from elsewhere. Key takeaways Paramount has agreed to pause its WBD takeover until courts rule on the states' claims or 06/01/2027; a trial date hasn't been set for this year. The opposition is heavily political — 12 Democrat AGs led by California and New York, plus the Writers' Guild — despite US and EU clearance. The gap between the $31 bid and WBD's ~$25.60 share price signals the market sees a meaningful chance the deal fails; Paramount stock is down ~20% in a month. Whittaker sees the deal's real prize as technological: the Ellisons using their tech background to transform the combined content library. Musk and Zuckerberg's pro-AI messaging is a bid to get ahead of AI becoming a genuine political liability over jobs and data centres ahead of the midterms. A Burnham UK government is expected to be more skeptical of big tech but subtler than Starmer, with DSIT abolished and a new cabinet-level AI minister; the ITV/Sky deal is still expected to clear the CMA.