California Governor Voices Concern Over Paramount-Warner Bros. Merger Lawsuit

Governor Gavin Newsom has expressed concern that a court injunction against Paramount Global’s $111 billion purchase of Warner Bros. Discovery could negatively affect jobs in California. According to a Wall Street Journal report, the governor indicated that if the merger is halted by the lawsuit brought by a coalition of 12 state attorneys general, state employment could suffer. The report also said Newsom’s office has asked Attorney General Rob Bonta, who has independent authority to pursue such actions, to seek an out-of-court resolution.

"There is no debate here: This merger will snuff out competition, drive up prices, diminish content quality, and produce fewer movies and shows each year," California Attorney General Rob Bonta said at a press conference when the suit was announced on July 13.

The lawsuit alleges that combining two of Hollywood’s top studios would reduce competition and limit consumer choices. A U.S. District Judge issued a temporary restraining order on July 20, which was extended on July 23, pausing the transaction. Paramount later agreed to delay closing the deal until a court ruling is issued, stating in a filing on July 24 that the acquisition will not be consummated until June 2027 or five days after a final decision, whichever comes first.

The suit includes California, Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington. While some industry figures, such as talent agency executive Ari Emanuel, have publicly supported the merger, other groups and actors have called for the deal to be blocked.

Representatives for Newsom and Attorney General Bonta declined to comment on the report, and The Hollywood Reporter was also unable to obtain a comment from the governor.