California’s top prosecutor is stepping in on Paramount‘s proposed merger with Warner Bros. Discovery.
“Paramount/Warner Bros. is not a done deal,” California Attorney General Rob Bonta said on Thursday. “These two Hollywood titans have not cleared regulatory scrutiny — the California Department of Justice has an open investigation, and we intend to be vigorous in our review.”
Bonta weighed in on the merger hours after Netflix declined to raise its bid for Warner Bros, which all but positioned Paramount as the winner of the bidding war. The David Ellison-led company’s offer will almost surely be accepted by Warner Bros.’ board.
If the government rubber stamps the deal as largely expected, the only approval Paramount would need to complete the merger is from European regulators. Another consideration is potential lawsuits from states looking to block the acquisition. California will almost surely lead any effort on this front.
In a statement last week, Bonta said that his office would investigate any deal involving Warner Bros. “The film and entertainment industry not only has historical importance to our state, it also is a critical sector that buoys the state’s economy of California and touches the lives of Americans daily,” he said. “The proposed Warner Brothers transactions must receive a full and robust review, and California is taking a very close look.”
Earlier this month, a lawsuit was filed by consumers in California federal court to block the deal. That case provides another path to stop the acquisition, though it’s largely viewed as a longshot.
On Thursday, Sen. Elizabeth Warren called the deal an “antitrust disaster.” She added, “A handful of Trump-aligned billionaires are trying to seize control of what you watch and charge you whatever price they want.”
