Anyone who has followed the saga that was Paramount Skydance (NASDAQ:PSKY) and Netflix Inc (NASDAQ:NFLX), both trying to win a deal to acquire Warner Bros. Discovery (NASDAQ:WBD), likely knows President Donald Trump has publicly shown his friendship with father and son Larry and David Ellison, two of the key Paramount figures.

A lawsuit against the Ellisons and Paramount shows an alleged personal guarantee from the president.

• Warner Bros. Discovery stock is showing upward bias. What’s next for WBD stock?

How Donald Trump is Involved in Lawsuit

A lawsuit from R.J. Cipriani filed this week against Paramount Skydance and Paramount adds to the headlines surrounding the high-profile acquisition battle for Warner Bros. Discovery that has also gotten members of Congress worked up.

Cipriani is a confidant of Paramount President Jeff Shell and previously filed a lawsuit against Shell this month. The update now sees Cipriani taking on both Ellisons, Paramount and other Paramount figures, as reported by Deadline.

"Paramount is aware of the frivolous lawsuit and believes the claims are entirely without merit," a Paramount spokesperson told Deadline. "There is no factual or legal basis for any claim against Paramount, its Directors or its major shareholders, and the Company intends to defend these allegations vigorously."

While the lawsuit doesn't target President Trump, it lays out several claims of the president's involvement in the merger.

Cipriani claims Trump gave a "direct personal assurance" to Larry Ellison in Paramount's bid for Warner Bros., something that was allegedly disclosed by Shell to Cipriani.

"Larry, it looks like Netflix is gonna get Warner Bros., but if you really, really want it, Larry, I'll make sure you get it," Trump allegedly said, according to the lawsuit.

Benzinga reached out to the White House for comment and did not hear back.

The lawsuit also alleges that Paramount Skydance decided to make "Rush Hour 4" after being pushed by the president, an item allegedly to have been part of the deal to get the Warner Bros. deal approved, according to The Hollywood Reporter.

Trump Administration Showed Support for Ellisons From The Start

Whether the comments in the lawsuit are true, Trump has publicly supported the Ellisons, calling them "good friends."

Trump has gone back and forth during the process of whether he would have a hands-on role in deciding who would get Warner Bros. and allowing the Department of Justice make a ruling.

Secretary of Defense Pete Hegseth recently called out Warner Bros.-owned cable network CNN as "fake news" and said, "the sooner David Ellison takes over that network, the better."

The comment suggests the support from the White House to have a Trump ally as the owner of a news network that isn't currently in favor with the president.

The Trump administration signaled support for Paramount in the war for Warner Bros. from the start.

“Who owns Warner Bros. Discovery is every important to the administration,” a senior Trump administration official told the New York Post. “The Warner board needs to think very seriously not just on the price competition but which player in the suitor pool has been successful getting a deal done.”

The senior administration official went on to say the best players in the suitor pool are "the Ellisons."

“Warner really needs to think really hard about the odds of success getting the deal cleared with players outside of Paramount Skydance.”

The comments suggested that other bidders, like Netflix, could face regulatory hurdles if they chose to pursue an acquisition of Warner Bros. Discovery.

Paramount has been declared the winning bidder by Warner Bros. Discovery and now awaits approval from Trump's Department of Justice.

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