California Attorney General Defends Antitrust Challenge to Paramount-Warner Merger

California Attorney General Rob Bonta said the state filed an antitrust lawsuit against the proposed merger of Paramount Pictures and Warner Bros. Discovery because it believes the deal would harm consumers and competition. Bonta told a panel at the Atlantic Festival in New York that his office conducted an independent review of the facts and law and identified violations in three market areas, prompting the state to intervene after the U.S. Justice Department approved the transaction in June.

Bonta said the lawsuit aims to protect consumers from higher satellite and cable bills, preserve movie-going options, safeguard jobs and maintain competitive choices in the marketplace. He added that the attorneys general are prepared to negotiate in good faith but will enforce the law without bias.

The case is scheduled for trial in March, with a temporary restraining order already delaying the merger’s closing until next summer. Recent settlement talks have not produced an agreement, and Paramount CEO David Ellison has reiterated threats to relocate the studio out of California, though he has not specified a destination.

When asked about Ellison’s statements, Bonta said the decision to leave the state is solely the company's and that the AG’s role is to enforce the law. He also criticized Paramount’s demand for a $1.88 billion bond, calling it “buyer’s remorse” and noting that the court has not required the states to post such a bond. A hearing on the bond issue is set for September 24, after which a judge will rule.

Paramount argues it is entitled to the bond under statutory provisions and maintains that the merger would benefit the entertainment industry, pledging to produce 30 films annually across the combined studios.