California Attorney General Rob Bonta is set to press Paramount Global for concessions before he signs off on its proposed merger with Warner Bros. Discovery. According to a Wall Street Journal report citing sources familiar with the negotiations, Bonta will request that Paramount divest several cable channels and agree to keep its movie studio operations distinct from Warner Bros. prior to any final approval.
State antitrust lawsuit drives the demand
The demand comes as California, joined by eleven other states, continues its antitrust lawsuit aimed at blocking the $110 billion acquisition. Plaintiffs argue the merger would reduce competition in film distribution and cable television, potentially raising prices for consumers, harming theaters, and weakening wages for workers in the entertainment sector.
Lawyers for the state and the two companies met on Friday to set an agenda for a Monday meeting in Sacramento. The agenda includes detailed discussions of how the combined entity would handle its cable and motion‑picture businesses, as well as how any divestiture would be structured.
Paramount’s response and the broader context
Paramount has defended the transaction, saying the merger will enable the company to produce more content, not less. CEO David Ellison has pledged that the combined studios would release 30 movies a year, a commitment the states have labeled unenforceable.
While the parties have not yet responded to Reuters’ request for comment, the meeting signals that the state is prepared to leverage its regulatory authority to shape the outcome. If Bonta’s conditions are not met, California could withhold its consent, a key step in completing the merger under state law.
Implications for California consumers and the industry
Should the AG secure a divestiture of cable assets, the market could see a reshuffling of channel ownership that might preserve competition among pay‑TV providers. Keeping the film studios separate could also maintain a more competitive landscape for movie distribution, potentially protecting theater attendance and limiting price hikes for streaming and cable packages.
The case underscores the growing scrutiny of mega‑mergers in the media sector, where consolidation raises questions about market power, consumer choice, and the health of the broader entertainment ecosystem.
Next steps
Monday’s meeting will determine whether a settlement can be reached or whether the lawsuit will proceed to a courtroom showdown. The outcome will have significant ramifications not only for Paramount and Warner Bros. Discovery, but also for the thousands of Californians who rely on competitive media options.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
