3 weeks ago
California AG Bonta Open to Structural Remedies in Paramount-WBD Suit
Two big movie and TV companies, Paramount and Warner Brothers, want to join together into one giant company.
A group of state lawyers, led by California's top lawyer Rob Bonta, think this might be too big and could hurt competition.
They are taking the companies to court to try to stop the merger.
Mr. Bonta says he might accept some fixes, like keeping certain parts of the companies separate.
But he does not believe the companies' promise to make 30 movies every year.
He thinks that promise is old and will not be kept.
Some people say the lawsuit is about politics and news networks, but Mr. Bonta says it is only about fair competition.
The companies' boss says he will move Paramount out of California by October if they cannot work out a deal.
A judge will decide what happens next in March.
California Attorney General Rob Bonta said he would consider structural remedies to resolve the antitrust lawsuit over the $111-billion Paramount-WBD merger.
Bonta dismissed behavioral remedies such as David Ellison's pledge to release 30 movies a year as an "old, stale promise."
The suit, set to go to court in March, alleges the merger threatens competition in wide-release films, blockbuster films, and cable programming.
Bonta rejected divesting CNN as a remedy, saying the lawsuit is not political, after the Ellison camp claimed it aims to keep CBS News and CNN apart.
Ellison plans to move Paramount out of California starting Oct. 1 if settlement talks do not begin by then; Bonta declined to comment on reports that Gov. Gavin Newsom urged a settlement.
- Who
- California Attorney General Rob Bonta, leading a group of state attorneys general, spoke about the antitrust suit against Paramount and Warner Bros. Discovery (WBD), whose chief legal officer Makan Delrahim was also set to speak at the conference.
- What
- Bonta said he is open to structural remedies such as keeping corporate entities separate, while dismissing behavioral remedies like David Ellison's pledge to release 30 movies a year as an "old, stale promise."
- Where
- Sacramento, California, at Politico's The California Agenda conference.
- When
- Earlier Tuesday, at Politico's The California Agenda conference; the trial is set for March, and Ellison's relocation deadline is Oct. 1.
- Why
- To resolve the antitrust lawsuit over the $111-billion merger, which Bonta says threatens competition in wide-release films, blockbuster films, and cable programming.
State attorneys general (Bonta's side)
Paramount and the Ellison camp
Is the lawsuit political?
State attorneys general (Bonta's side)
The suit is a straightforward antitrust case focused on competition in films and cable programming, with "little, if any" mention of CNN.
Paramount and the Ellison camp
The lawsuit is political and aimed at keeping CBS News and CNN from coming together under the Ellisons.
What remedies should resolve the case?
State attorneys general (Bonta's side)
Structural remedies such as keeping corporate entities separate are enforceable; a promise to release 30 movies a year is an "old, stale promise."
Paramount and the Ellison camp
The combined company's pledge to release 30 films a year is a serious commitment that should satisfy concerns.
Settlement and the move out of California
State attorneys general (Bonta's side)
The AG is open to good-faith settlement proposals with robust structural remedies, having "won" every development in the case so far.
Paramount and the Ellison camp
Ellison plans to move Paramount out of California starting Oct. 1 unless settlement talks begin by then, signaling the suit is costly and unwarranted.
Key facts
- Merger value
- $111 billion
- Trial date
- March
- Plaintiffs
- California AG Rob Bonta and a group of state attorneys general
- Alleged competitive threats
- Wide-release films, blockbuster films, cable programming
- Preferred remedy
- Structural remedies, keeping certain corporate entities separate
- Rejected remedy
- Behavioral remedies, including pledge of 30 movies per year
- Paramount relocation deadline
- Oct. 1, if settlement talks have not begun
- Venue of remarks
- Politico's The California Agenda conference, Sacramento
Quotes
California Attorney General Rob Bonta
California Attorney General
“"If Paramount and Warner Brothers want to propose a settlement that involves real, robust structural remedies that address the concerns in the markets that we’ve identified in our complaint, we will listen."”
deadline.com
“"That is an old stale promise. I’ve heard about that before. It doesn’t really vibe, in my humble opinion, with what the market will dictate and what history has shown"”
deadline.com
Sources
Related news
Paramount, California Officials Discuss Warner Bros Merger Settlement
California Cancels Paramount Settlement Meeting Over Warner Bros Merger
Film Unions Urge California AG to Settle Paramount Antitrust Suit
California May Seek Cable Sales Before Paramount-Warner Merger Approval
California AG calls Paramount's exit threat 'blackmail' over merger
Newsom Favors Paramount-Warner Settlement If It Protects California Jobs
Bargarh Woman Becomes District’s First Female Commercial Pilot
Sam Altman Says AI Capabilities and Safeguards Must Advance Together
Sony and Warner Sue Anthropic Over AI Music Training
Mother Bear And Three Cubs Rescued From California Water Tank
Overnight Rescue Saves Climber Trapped On Narrow Ledge
