California AG defends Paramount-Warner merger settlement amid criticism
Attorney General Rob Bonta defended the antitrust settlement that clears Paramount’s merger with Warner Bros., saying it includes monitoring and job guarantees but lacks the robust structural remedies he originally sought.
Rob Bonta, California’s attorney general, defended the antitrust resolution that permits Paramount to combine with Warner Bros., highlighting independent monitoring and commitments to increase domestic production and retain L.A. studio lots for at least five years. The agreement, however, omits the “robust structural remedies” the AG had pursued since filing the July lawsuit. While Bonta said he does not think the two firms should merge, he stressed that the settlement offers certainty for Hollywood and avoids the production declines seen after the Disney-Fox merger.
He faced pressure from Governor Gavin Newsom, Xavier Becerra, the cinema trade group and labor leaders, while Paramount warned it might relocate to Tennessee and sought a $1.88 billion court order against the states. The Writers Guild of America, which settled its own antitrust case separately, criticized the terms as insufficient for writers, and Connecticut AG William Tong expressed disappointment over the lack of divestiture of several outlets. All 12 states signed the deal, though the WGA was not part of the negotiations.
Why it matters
The settlement shapes the future of Hollywood production and sets a precedent for antitrust enforcement in major media mergers.
How this story developed
- Sep 8 Paramount seeks $1.88 billion bond from states and WGA over Warner Bros. deal delay
- Sep 17 The Justice Department filed a statement of interest seeking a $1.88 billion bond from the states.
- Sep 21 A settlement with twelve states was reached, removing a key antitrust obstacle.
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