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California’s top attorney general intervenes over Paramount’s proposed merger with Warner Bros. Discovery.
“Paramount/Warner Brothers is not a done deal,” California Attorney General Rob Bonta said Thursday. “These two Hollywood giants have not passed regulatory scrutiny – the California Department of Justice has an open investigation, and we intend to be active in our review.”
Bonta weighed in on the merger hours after Netflix declined to raise its bid for Warner Bros., virtually making Paramount the winner of the bidding war. The David Ellison-led company’s offer will almost certainly be accepted by Warner Bros. blackboard.
If the government approves the deal as is largely expected, the only approval Paramount will need to complete the merger is from European regulators. Another consideration is potential lawsuits from countries looking to block the takeover. California will almost certainly lead any effort on this front.
In a statement last week, Bonta said his office would investigate any deal involving Warner Bros. “Not only is the film and entertainment industry historically important to our state, it is also a critical sector that supports California’s economy and touches the lives of Americans every day,” he said. “The proposed Warner Brothers transactions should undergo a full and robust review, and California is taking a very close look.”
Earlier this month, consumers filed a lawsuit in federal court in California to block the deal. This case provides another path to stopping the takeover, although it is largely seen as a long way off.
On Thursday, Senator Elizabeth Warren called the deal an “antitrust disaster.” “A bunch of billionaires allied with Trump are trying to control what you watch and charge you whatever price they want,” she added.
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