Archive · 12 Aug 2026
California AG calls Paramount's exit threat 'blackmail' over merger
California's top lawyer, called the Attorney General, and a very big company are having a big fight.
The company, Paramount, wants to join up with another company called Warner Bros.
Discovery.
Together they would be one of the biggest powers in TV and movies.
California says that is against the law because the two companies together would be too powerful and hurt viewers.
The boss of Paramount, David Ellison, says if California won't talk about a deal, the company will start moving out of California on October 1.
That could mean losing lots of jobs in California.
Also, if the two companies are allowed to join, Paramount has to pay Warner Bros Discovery's shareholders 7 million dollars every single day.
That money could go over 1 billion dollars by the time the trial starts in March.
A judge has put the merger on hold for now.
Paramount says the lawsuit is wrong and that stopping the deal will hurt people who work in entertainment.
California Attorney General Rob Bonta accused Paramount Skydance CEO David Ellison of 'blackmail' over his threat to move the company out of California unless settlement talks begin.
Ellison reportedly told executives that Paramount would begin leaving California from October 1 if Bonta does not agree to settlement discussions.
Paramount could incur 'ticking fees' of USD 7 million a day, payable to Warner Bros Discovery shareholders if the deal closes, and the fees could cross USD 1 billion by the March 2 trial.
The dispute centers on Paramount's USD 110 billion agreement to acquire Warner Bros, a deal that would combine two of Hollywood's five biggest film distributors.
Twelve states led by Democratic attorneys general sued in San Francisco federal court, alleging the merger violates the Clayton Act; a federal judge has temporarily blocked it.
- Who
- California Attorney General Rob Bonta and Paramount Skydance CEO David Ellison, in a dispute over Paramount's merger with Warner Bros Discovery.
- What
- Bonta accused Ellison of 'blackmail' over threats to leave California unless the state agrees to settlement talks in the antitrust case blocking the merger.
- When
- The threat was made last week, with a planned departure from October 1; a federal judge temporarily blocked the merger last month, and trial is set for March 2.
- Where
- California; the lawsuit was filed in the US District Court for the Northern District of California in San Francisco.
- Why
- Bonta argues the USD 110 billion merger violates the Clayton Act and would mean higher prices, lower quality and less content, while Paramount threatens to move jobs to Texas, Georgia or Tennessee unless settlement talks begin.
State Attorneys General / Antitrust Enforcers
Paramount / Warner Bros Discovery
Legality of the merger
State Attorneys General / Antitrust Enforcers
The merger violates the Clayton Act, which bars mergers that substantially lessen competition or create a monopoly, and must not be allowed through.
Paramount / Warner Bros Discovery
The lawsuit 'reflects a fundamentally flawed application of the antitrust laws and is wrong on both the facts and the law'; the company will vigorously defend the transaction as consistent with sound competition policy.
Impact on audiences and workers
State Attorneys General / Antitrust Enforcers
The proposed deal would result in higher prices, lower quality and less content for film and television audiences.
Paramount / Warner Bros Discovery
Delaying the transaction will harm entertainment workers who have already suffered from technology disruption and will cost California tens of thousands of entertainment jobs.
- Accusation
- 'Blackmail' by California Attorney General Rob Bonta against Paramount Skydance CEO David Ellison
- Deal value
- USD 110 billion
- Ticking fees
- USD 7 million per day payable to Warner Bros Discovery shareholders if the deal closes
- Fee projection
- Could exceed USD 1 billion by the time trial begins
- Trial date
- March 2
- Merger pause
- Blocked until a court ruling or June 1, 2027, whichever comes first
- Lawsuit
- Brought by 12 states led by Democratic attorneys general under the Clayton Act
- Potential relocation destinations
- Texas, Georgia, Tennessee