California Attorney General Rob Bonta addressed questions regarding his settlement of an antitrust challenge to Paramount’s $111 billion acquisition of Warner Bros. Discovery on Tuesday. When asked whether Paramount’s reported consideration of relocating operations outside California influenced the timing of the agreement, Bonta stated that such concerns played no role in the decision, emphasizing that the focus remained on antitrust issues.
The settlement, contingent on judicial approval, resolves a lawsuit filed by 12 states seeking to block the merger, representing a significant legal hurdle for the transaction. A key component of the agreement involves the establishment of an editorial board designed to safeguard the independence of CNN and CBS News. Bonta clarified that state governments, including California, would have no involvement in the board’s operations. He described the board as comprising experienced journalists with expertise in maintaining independence, objectivity, and fairness.
Bonta explained that standards for selecting board members were established through the settlement negotiations to preserve independence. The agreement includes monitoring provisions through an auditor, with states retaining the ability to return to court if Paramount violates the consent decree. Despite these assurances, the settlement has faced criticism from multiple quarters. Connecticut Attorney General William Tong indicated his state had advocated for complete divestiture of CNN and CBS News and expressed disappointment that the settlement did not achieve this objective. Other critics have raised concerns about the adequacy of protections against media consolidation, potential employment effects, and the durability of the editorial safeguards included in the agreement.
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