Paramount and State Attorneys General to Meet for Antitrust Mediation as Governor Newsom Comments on Merger

Paramount Pictures and representatives of a coalition of state attorneys general are scheduled to meet on Aug. 24 for mediation in the antitrust case challenging Paramount’s planned $111 billion purchase of Warner Bros. Discovery, according to court filings. The meeting follows a status conference before U.S. District Judge Araceli Martinez-Olguin that ordered the parties to pursue mediation before a magistrate judge.

California Attorney General Rob Bonta said the agency prefers to resolve the dispute "in the boardroom, not the courtroom" and indicated that any discussion of the merger would be ineffective without "robust structural remedies" addressing the state’s concerns. He warned that the merger could lead to higher costs, reduced competition, lower wages, job cuts and fewer movies and TV shows, and affirmed the state’s commitment to enforce antitrust law.

Governor Gavin Newsom, who has been largely silent on the issue, said he is taking seriously reports that Paramount might consider relocating its operations to another state if the lawsuit is not settled. "We’re hoping that doesn’t happen," Newsom said, adding that the state’s reputation is at stake. He suggested that a settlement could be possible but emphasized that the details would need to be worked out.

The case is set for trial on March 2 in federal court in Oakland, and Paramount is seeking a court order for a $1.88 billion bond while facing a daily fee deadline of $7 million. No comment was obtained from Paramount on the governor’s remarks.