Paramount merger blocked by California AG Rob Bonta, sparking backlash
California AG Rob Bonta leads a push to block a potential merger between Paramount and Warner Bros. Discovery. Charlie Gasparino analyzes the regulatory battle, while actor Mark Ruffalo urges officials to stop the deal.
Paramount Skydance Corp. reached a settlement with the states seeking to block its proposed takeover of Warner Bros. Discovery Inc., clearing the way for a historic Hollywood merger.
California Attorney General Rob Bonta led a group of state attorneys general who filed a lawsuit challenging the massive $111 billion deal that was initially expected to close during the third quarter of this year. On Monday, Paramount announced a deal had been reached.
"Our shared aim was an outcome that best serves consumers, workers and — most importantly — the creative community so vital to the art of visual storytelling. We're confident this agreement does exactly that, memorializing a series of commitments that include 30+ films annually and expanded U.S. film production to help revitalize our industry here at home," Paramount CEO David Ellison said in a statement.
PARAMOUNT-WBD MERGER ON HOLD AFTER JUDGE GRANTS TEMPORARY RESTRAINING ORDER
Paramount Skydance Corp. has reportedly reached a settlement with the states seeking to block its proposed takeover of Warner Bros. Discovery Inc. (Eric Thayer/Bloomberg via Getty Images)
"Our goal has always been to build a stronger Hollywood — one with more stories told, greater choice for consumers and stronger competition. That vision was validated by unanimous approval from competition authorities in nearly 70 jurisdictions worldwide, who agreed this deal is pro-competitive, pro-consumer and pro-worker," Ellison continued. "Having now addressed the State AGs' and WGA's concerns, we have complete clearance for this merger and look forward to putting these commitments into action. Bringing Paramount and Warner Bros. Discovery together will build that stronger Hollywood, creating expanded opportunity for our people and even more great entertainment for audiences around the world."
Bonta also confirmed the deal during a Monday press conference.
"This settlement is not a vote of support for this merger; it is not a blessing of the broader merger," Bonta said.
WARNER BROS DISCOVERY SHAREHOLDERS APPROVE PARAMOUNT SKYDANCE DEAL
Paramount CEO David Ellison. (Charly Triballeau/AFP via Getty Images)
The Justice Department (DOJ) announced earlier this year it has closed its antitrust investigation into Paramount Skydance's proposed acquisition of WBD, concluding the transaction is not likely to harm competition or American consumers.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PSKY | PARAMOUNT SKYDANCE CORP. | 10.60 | +0.39 | +3.78% |
| WBD | DISCOVERY INC. | 30.88 | +3.08 | +11.06% |
Powered By | ||||
The Antitrust Division said its eight-month review examined more than 2 million documents and found the deal could strengthen competition across the media and entertainment industry, including in streaming video, traditional television and theatrical film distribution. However, state attorneys general retain independent authority under antitrust laws.
Ellison, the son of billionaire Oracle co-founder Larry Ellison, took control of Paramount last year when Skydance Media and Paramount Global completed an $8 billion merger. Adding WBD to his portfolio would make the younger Ellison one of Hollywood’s most powerful people.
