California Attorney General Rob Bonta said that a settlement in the multistate antitrust challenge to Paramount’s proposed acquisition of Warner Bros. Discovery would necessitate substantial structural changes to the combined company’s operations. Bonta made the remarks during an interview, emphasizing that the focus of the litigation centers on three specific markets identified in the complaint rather than broader industry considerations.
The lawsuit was filed in July by Bonta and 11 other state attorneys general from Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington. The states allege that the combined entity would control approximately one-third of theatrical film distribution and roughly one-third of basic cable television programming, raising antitrust concerns. The proposed transaction would merge major film studios, television networks including CBS and CNN, and streaming platforms Paramount+ and HBO Max.
Paramount initially targeted a closing date of September 30 but agreed to extend the deadline to as late as June 2027. A trial is scheduled for March to address the states’ challenge. Bonta indicated openness to settlement negotiations if pursued in good faith, though he stressed the states’ focus remains on the specific antitrust allegations in their complaint rather than broader market arguments about streaming competition or declining pay-TV subscriber numbers.
Bonta characterized the case as a straightforward application of century-old antitrust law under Section 7 of the Clayton Act. He stated the combined company would create what legal standards consider a “presumptively illegal market concentration.” Meanwhile, Paramount has defended the transaction as consistent with competitive realities in the entertainment industry and indicated preparedness to pursue the matter through the Supreme Court if blocked. The company’s chief executive expressed confidence the deal would ultimately close.
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