California AG Rob Bonta Weighs in on Paramount-WBD Merger Lawsuit

California Attorney General Rob Bonta has shed light on the state’s stance regarding the Paramount Skydance merger with Warner Bros. Discovery, emphasizing the importance of ‘robust structural remedies’ in settling the antitrust case.

Source: image.cnbcfm.com

Bonta, who filed a lawsuit alongside 11 other state attorneys general in July, believes that the merger would result in a significant antitrust violation, controlling nearly one-third of films and nearly a third of basic cable TV programming.

Source: image.cnbcfm.com

When asked about potential discussions with Paramount outside of the courtroom, Bonta expressed willingness to engage in good-faith negotiations. However, he emphasized that the states’ primary concern lies in addressing the alleged antitrust issues, which Paramount has been attempting to sidestep.

According to Bonta, Paramount has been focusing on unrelated topics, such as the streaming market and foreign regulators, in an attempt to divert attention away from the core issue at hand.

The lawsuit, which has been delayed until March 2024, seeks to block the merger and prevent the combined entity from dominating the film and pay TV industries.

The proposed acquisition would bring together the renowned movie studios Warner Bros. and Paramount, as well as a vast portfolio of TV networks, including Paramount’s CBS broadcast network and pay TV channels like MTV and BET, alongside WBD’s CNN, Discovery, and others.

In addition, the merged entity would control two prominent streaming platforms: Paramount+ and HBO Max.

Bonta’s comments highlight the complexity of the issue and the need for a comprehensive solution to address the alleged antitrust concerns.

The California AG’s stance underscores the state’s commitment to protecting consumers and promoting fair competition in the film and pay TV industries.

Bullet points summarizing the key points of the lawsuit include:

• The merger would control nearly one-third of films and nearly a third of basic cable TV programming.
• The combined entity would dominate the film and pay TV industries, potentially stifling competition and innovation.
• Paramount has been attempting to sidestep the core issue by focusing on unrelated topics, such as the streaming market and foreign regulators.
• The lawsuit seeks to block the merger and prevent the combined entity from controlling the film and pay TV industries.