California AG Demands Structural Fixes in Paramount-WBD Deal Covering Nearly 1/3 of Film, TV
Updated
Updated · CNBC · Aug 20
California AG Demands Structural Fixes in Paramount-WBD Deal Covering Nearly 1/3 of Film, TV
3 articles · Updated · CNBC · Aug 20
Summary
Rob Bonta said the 12-state coalition would need “robust structural remedies” to settle its lawsuit against Paramount’s proposed acquisition of Warner Bros. Discovery, signaling a simple negotiated compromise is unlikely.
Bonta said the states want talks focused on the three markets named in their complaint, arguing the merger would create a “presumptively illegal” concentration under Section 7 of the Clayton Act.
The July lawsuit says the combined company would control nearly one-third of films and nearly a third of basic-cable programming, uniting Warner Bros. and Paramount studios with CBS, CNN, MTV, BET and Discovery networks.
Paramount has delayed the deal’s closing deadline to as late as June 2027, while a March trial looms; Bonta said settlement remains possible if the company comes to the table “in good faith.”
Paramount has called the case a misreading of today’s media competition, and its lawyers have said they are prepared to defend the transaction through the Supreme Court if necessary.