California AG to decide soon on blocking Paramount-WBD deal

Key facts

• California Attorney General Rob Bonta will soon decide on blocking Paramount's $110 billion acquisition of Warner Bros. Discovery.
• The review by California's AG focuses on potential antitrust violations.
• Britain's competition regulator has begun its review of the Paramount-Skydance Warner Bros. deal.
• The UK regulator's first phase review has a deadline of August 7.
• Paramount may sell children's TV network assets to secure EU approval.
• Multiple U.S. states are reportedly preparing to file an antitrust lawsuit to block the merger.
• Paramount Global accused Netflix of a "scorched-earth campaign" against the deal.
• Netflix has responded to Paramount's accusations and denied the claims.

California Attorney General Rob Bonta is expected to soon decide whether to file a lawsuit to block Paramount's proposed $110 billion acquisition of Warner Bros. Discovery. His office is conducting a review of the deal, focusing on potential antitrust violations. Bonta has indicated that behavioral remedies might not be sufficient, suggesting a preference for structural remedies if violations are identified. The review is also considering concerns raised by various industry stakeholders.

Multiple U.S. states are reportedly preparing to file their own antitrust lawsuit to block the merger, though the specific states involved have not yet been disclosed. In parallel, Britain's competition regulator has formally commenced its review of the planned acquisition. This review is in its first phase, which assesses potential harm to competition, and has a deadline set for August 7. To navigate potential antitrust concerns and secure approval from the European Union, Paramount is reportedly willing to divest some of its children's television network assets.

Paramount Global has publicly criticized Netflix, accusing the streaming service of orchestrating a "scorched-earth campaign" against its proposed purchase of Warner Bros. Discovery. Paramount also addressed concerns that have been raised by the Teamsters union regarding the deal. Netflix has since responded to Paramount's allegations, pushing back against claims that it engaged in a "scorched-earth campaign" against Paramount's workforce.