California to Decide Soon on Lawsuit to Block Paramount-Warner Bros. Merger

(Central News Agency, Oakland, California, 5th Combined Foreign News) The $110 billion acquisition of Warner Bros. Discovery by Paramount Skydance is drawing attention, and California Attorney General Rob Bonta said in an exclusive interview with Reuters that he will soon decide whether to file a lawsuit to block the merger. Bonta also indicated that he generally believes any commitments by companies to resolve antitrust concerns should ideally be backed by potential asset divestitures. According to sources familiar with the matter, European antitrust regulators are expected to decide whether to approve the deal by early July, and the U.S. Department of Justice may also rule soon. If these reviews are passed, the deal can be completed, putting time pressure on Bonta's office. The California Attorney General's office is seen as the enforcement agency most likely to challenge the deal. Bonta said in the interview, "If we decide to take action, there is not much time left." The merger has sparked anxiety in Hollywood about potential reductions in film production. Bonta said his office has heard from many industry workers, and their concerns have raised "more red flags." Bonta noted, "We believe we play a core role in protecting Hollywood jobs with respect to the proposed acquisition of Paramount Skydance and Warner Bros. Discovery." California has previously cooperated with states under both Democratic and Republican administrations in major antitrust cases, including a recent victory against entertainment giant Live Nation. Bonta said California has the largest antitrust division in the nation, with just under 50 people. Additionally, California will add 8 lawyers and 8 support staff this year. Governor Gavin Newsom has proposed adding $14.3 million to Bonta's antitrust budget. A Paramount spokesperson said the combined company has "every economic incentive" to expand production to increase streaming service subscriptions. Paramount CEO David Ellison has vowed that the combined company will release 30 theatrical films per year. The company recently stated in court documents that it views theatrical releases as key to marketing its streaming products. Paramount Skydance announced in February its plan to acquire Warner Bros. Discovery, which owns major franchises like "Harry Potter" and "Game of Thrones," for $110 billion. (Editor: Liu Shuqin) 1150606