California Attorney General Rob Bonta will soon decide whether to sue to block Paramount's $110 billion acquisition of Warner Bros. Bonta's office is reviewing the deal for potential antitrust violations, citing concerns over competition, jobs, wages, and consumer options. Other states are discussing a joint challenge.
California Attorney General Rob Bonta stated he will soon decide whether to sue to block Paramount's $110 billion acquisition of Warner Bros. His office is reviewing the deal for potential violations of U.S. antitrust law, amid concerns from movie theater owners, actors, and others about decreased competition, lower wages, and fewer consumer options. Bonta indicated that behavioral remedies, where companies agree to take specific actions, are not always sufficient and should ideally be backed by structural consequences if not adequate. Paramount maintains that the merger will expand production and that it has economic incentives to grow streaming subscriptions, with CEO David Ellison vowing 30 theatrical releases annually. The company believes the deal presents no antitrust violations. California's Department of Justice has a large antitrust division, and the state is proposing increased funding for this work. Several other states are in discussions with California about a potential joint challenge to the deal, though an agreement on their approach has not been reached. European antitrust authorities are expected to decide on the deal by early July, and the U.S. Department of Justice is also nearing a decision.
The decision by California's Attorney General could significantly impact the proposed $110 billion merger between Paramount and Warner Bros, potentially delaying or blocking the deal and setting a precedent for state-led antitrust enforcement in the entertainment industry.