California Governor Remains Quiet as State AG Sues to Block Paramount-Warner Merger
Governor Gavin Newsur has not publicly commented on the antitrust lawsuit filed by Attorney General Rob Bonta to halt Paramount's $110 billion acquisition of Warner Bros. Discovery, while sources say his silence is strategic.
California Governor Gavin Newsom has not issued a public statement on the antitrust lawsuit filed by Attorney General Rob Bonta and a coalition of 11 other state attorneys general to block Paramount Global’s proposed $110 billion acquisition of Warner Bros. Discovery. The suit, filed on July 13, has been joined by the Writers Guild of America and temporarily paused the merger.
Sources close to the governor’s office say Newsom is deliberately avoiding a position because he does not view the deal as inherently harmful and may be persuaded by supporters who argue the merger is not a catastrophic threat to the state’s film industry. One source noted that Newsom was surprised by the timing of the lawsuit and prefers not to engage in a legal battle he perceives as unlikely to succeed.
The governor, who is completing his term in January and is reportedly considering a presidential run, has been selective about allocating political capital in recent months, including declining to endorse any Democratic candidates in the state’s gubernatorial primary. His most detailed remarks on the merger came in June during an interview on journalist Aaron Parnas’s Substack podcast, where he said, "We believe in a fair independent process of evaluating the merits and demerits of this merger."
The transaction is being financed in part by billionaire Larry Ellison, whose son David Ellison leads Paramount’s Skydance division. Reports indicate that Paramount Skydance may consider relocating its corporate headquarters out of California if the lawsuit proceeds, adding a potential economic dimension to the dispute.
The merger also coincides with a November ballot measure that would impose a one-time 5 % wealth tax on California billionaires. Newsom has opposed the state measure while supporting a similar federal proposal, and sources suggest that a negative outcome for the merger combined with the tax’s passage could create political challenges for his prospective presidential campaign.
While Hollywood figures, guilds, and city mayors have publicly opposed the deal, Newsom has chosen to stay on the sidelines until the legal proceedings are resolved.