California Attorney General Rob Bonta said that his office will give the Netflix and Paramount proposals for Warner Bros. a “full and robust review.”
Bonta’s statement on Friday underscored another element in the regulatory road for the merger: state attorneys general, adding to the scrutiny from the Department of Justice and overseas regulators.
“Further consolidation in markets that are central to American economic life does not serve our economy, consumers, or competition well. In fact, consolidation of markets has led to increased unaffordability, a loss of good-paying job opportunities, and fewer choices for consumers,” Bonta said.
“The film and entertainment industry in California 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. The proposed Warner Brothers transactions must receive a full and robust review, and California is taking a very close look. We are committed to fighting market consolidation that we find unlawful.”
Per a research note this week from Guggenheim Securities, Netflix executives told investors that “13-14 state attorneys general—both Democratic and Republican—are actively investigating the WBD deal, reflecting the increasingly active role of states in merger review.”
Earlier on Friday, Paramount said that it had cleared a 10-day waiting period after responding to a second request for information from the DOJ around its unsolicited offer for Warner Bros. Discovery. Netflix dismissed the announcement, though, noting that the milestone does not mean that Paramount had regulatory clearance.
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