California Attorney General Rob Bonta characterized recent actions by David Ellison, the prospective acquirer in a proposed Paramount-Warner Bros. Discovery merger, as indicators of a weakening legal position. Ellison has pursued multiple strategies in recent weeks to counter an antitrust challenge led by Bonta and a coalition of twelve state attorneys general.
In an interview, Bonta addressed a courtroom motion filed by Paramount seeking to make California taxpayers responsible for substantial financial penalties if the state loses the case. Bonta stated the motion lacked legal merit and reflected the weakness of Ellison’s position. He noted that a judge had already rejected a similar request for a bond from the state, and that Paramount itself had voluntarily agreed to ticking-clock fees and delayed the merger closing.
Bonta also dismissed as ineffective Ellison’s threat to relocate operations out of California. Bonta suggested such threats were attempts to pressure him into settlement negotiations and characterized them as a sign that Ellison was “on the back foot” in the litigation. Bonta noted the contradiction in Ellison simultaneously claiming commitment to Hollywood while threatening departure.
Regarding jurisdiction, Bonta indicated that any relocation would not affect California’s ability to pursue the lawsuit. He emphasized that the case involves the American economy broadly and that a coalition of twelve attorneys general across multiple states brought the action, making Ellison unable to escape accountability through geographic relocation.
Bonta acknowledged recent shifts in stakeholder positions, including letters from the Directors Guild of America and IATSE supporting settlement discussions, as well as a statement from Cinema United favoring settlement talks. However, he maintained that settlement would be acceptable only if Paramount agreed to resolve legal violations, stating that allowing unlawful conduct would be unacceptable regardless of settlement preferences.
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