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California Attorney General Rob Bonta speaks at a news conference on Feb. 10, 2026, in Sacramento.<\/p>\n
JOS\u00c9 LUIS VILLEGAS<\/p>\n
jvillegas@sacbee.com<\/p>\n
Paramount and Warner Bros. Discovery are moving forward with their $110 billion dollar merger, which California Attorney General Rob Bonta says could necessitate a crucial \u201ccheck on oligarchy\u201d to rescue the state\u2019s film and TV industry.<\/p>\n
\u201cConsolidation would mean fewer voices speaking truth to power and fewer documentarians, filmmakers, showrunners, producers, writers, and artists shedding light on important stories that too often go untold. That\u2019s a death knell for the film and TV industry \u2014 and for our democracy,\u201d said Bonta in a Monday morning news conference.<\/p>\n
Bonta said he and 12 other attorneys general are moving forward with the lawsuit which intends to invoke antitrust clauses to \u201ccheck the elite few who think they are above the law,\u201d referring to Paramount CEO David Ellison, a close acolyte<\/a> of President Trump.<\/p>\n Bonta said he is \u201copen to solving problems in the boardroom as opposed to the courtroom\u201d but it is unclear whether the Bonta-led suit will pressure Paramount into a backroom deal, or whether it will escalate into a legal battle.<\/p>\n Warner Bros. landed in Paramount\u2019s lap after its $83 billion dollar deal with Netflix fell through. The streaming giant was positioned to acquire much of the company, but Netflix pulled out<\/a> in February when Paramount pledged to purchase all of WBD, including its news arm CNN.<\/p>\n Paramount has remained steadfast in its ambitions to close the merger deal before the end of September, at which point Warner Bros will become more expensive.<\/p>\n The merger poses a dual threat for California, given that advisors for Paramount<\/a> have said Ellison would be encouraged to move the company\u2019s headquarters if Bonta\u2019s opposition to the merger made California \u201cinhospitable\u201d, which could mean another business titan leaving the state for Texas or elsewhere.<\/p>\n Paramount projects $6 billion in immediate cuts to accommodate Warner Bros.\u2019 multi-billion dollar debt, which remains in the billions. Layoffs for Californians are imminent, with local officials reporting that at least 2,500 jobs<\/a> are at risk in Los Angeles alone.<\/p>\n Many Democrats have also sounded the alarm on the combined $24 billion stemming from independent wealth funds in Saudi Arabia, Qatar, and the United Arab Emirates as major backers of the merger. Democratic Sen. Elizabeth Warren voiced concern about \u201cforeign actors\u201d<\/a> accessing American\u2019s information and having undue stakes in domestic markets.<\/p>\n Concerns have also been raised about international stakeholders influencing the American media ecosystem. At his news conference, Bonta was asked about a report<\/a> that Warner Bros. would concede ownership of CNN to placate Democrats, which Bonta dubbed \u201cthe gossip machine on overdrive.\u201d<\/p>\n Supporters of the deal back Ellison\u2019s claim that the merger<\/a> would allow big Hollywood studios to compete with streaming services like Amazon and Netflix which also risk causing a market takeover if not contested.<\/p>\n Others are doubtful of the validity of Bonta\u2019s lawsuit. New York Post columnist Charlie Gasparino claims the lawsuit is a ploy by Bonta to calcify the support of other Democrats and constituents as another election year approaches, claiming the case is such a lofty invocation of antitrust law that \u201cit\u2019s almost hard to imagine how a court just won\u2019t throw it out\u201d.<\/p>\n Related Stories from Sacramento Bee<\/p>\n
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