In a recent press conference, California‘s Attorney General Rob Bonta defended the antitrust settlement allowing Paramount to merge with Warner Bros., asserting that the agreement, which includes independent monitoring, will ultimately create more jobs in Hollywood. However, the deal does not encompass “robust structural remedies,” a goal Bonta had expressed since initiating the lawsuit in July. While he emphasized the strength of the resolution, he admitted it was not the outcome he had hoped for.
Pressure and Compromise
Bonta faced mounting pressure from various stakeholders, including Governor Gavin Newsom and labor leaders, who were eager for a resolution. Paramount attempted to bolster its position, threatening to relocate to Tennessee and seeking a court order to compel a 12-state coalition to pay $1.88 billion for delaying the merger.
In response to this pressure, Bonta sought to refocus the conversation on the merits of the agreement rather than external influences. “That’s not what I’m thinking about, that’s not my focus,” he stated, arguing that recent legal victories incentivized Paramount to make significant concessions. He declared, “We got the antitrust resolution that we wanted. Very strong remedies and commitments to address the concerns that we raised.”
Risk and Certainty in Hollywood
Bonta acknowledged the uncertainties associated with prolonging litigation, noting the potential risks inherent in courtroom battles. “Courtrooms always have risk,” he remarked, while highlighting that extending the case could exacerbate uncertainty in the Hollywood industry—an issue raised by Paramount and various labor unions.
He made the case that the settlement provides vital stability for production in Los Angeles, outlining commitments from Paramount to increase domestic production and ensure that its Los Angeles lots remain unsold for at least five years. “This deal gives certainty about the future of production right here in L.A.,” he asserted.
Contrasting Previous Mergers
Bonta contrasted the outcome of the Paramount-Warner Bros. settlement with the unchallenged Disney-Fox merger, which he said led to reduced production. “This agreement is the opposite of Disney-Fox,” he emphasized, claiming the current deal guards against negative outcomes while securing substantial benefits for the industry.
Reactions and Concerns
During the press conference, Bonta stood alone, without members of his trial team or representatives from the other 11 states involved in the suit. The Writers Guild of America (WGA), which had filed its own antitrust suit and reached a settlement over the weekend, issued a statement expressing dissatisfaction with the terms, declaring they “fall far short of adequately protecting writers.”
Connecticut Attorney General William Tong shared his disappointment that the settlement did not include a divestiture of CBS and CNN, which he argued is essential for maintaining “ethical and independent journalism.”
Bonta noted that despite their reservations, all 12 states consented to the settlement. He clarified that the WGA chose to pursue its own legal action separately, stating, “They brought their own case. They decided whether or not they wanted to resolve their case and under what terms.”
While struggling to define a specific turning point in negotiations, Bonta remarked on the blurring of timelines due to intense discussions, asserting the complexity of the deliberative process.
