California calls Paramount's threat to leave the state 'blackmail'
Bonta says the reported move would pressure state attorneys general as Paramount faces a $7 million daily fee if the deal stalls.
- On Monday, California Attorney General Rob Bonta published a guest column refuting claims that his antitrust lawsuit against the $110 billion Paramount Skydance and Warner Bros Discovery merger is politically motivated, accusing Paramount of "spearheading a public relations campaign to spin a narrative that is simply false."
- Representing a 12-state coalition, Bonta argues the merger violates the Clayton Antitrust Act by creating illegal concentration in film distribution and cable TV, controlling nearly one-third of theatrical motion picture distribution and cable channels.
- Paramount CEO David Ellison told executives last week he is prepared to relocate operations from California if settlement talks fail, while Bonta dismissed Paramount's proposed theater contracts as "completely unenforceable" in the antitrust case.
- Trial proceedings are scheduled for March 2, 2027, with Paramount facing a potential "ticking fee" payable to Warner Bros Discovery shareholders of $7 million per day starting October 1, totaling around $1.2 billion by trial's conclusion.
- Bonta has not publicly accepted any settlement terms, stating that any remedy must be "structural" rather than "behavioral" as the sides prepare for the upcoming court battle over the entertainment landscape.
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According to media reports, the entertainment company Paramount is setting the course for a move from California.
The film studio Paramount is traditionally anchored in Hollywood. However, the dispute over the purchase of the rival Warner Brothers could now lead to a change of address at the company.
Hollywood is the Mecca of the film world and yet one of the largest entertainment companies wants to leave California. The reason for this is apparently Warner Brothers' competition suit.
Paramount threatens to leave California for blocking $110 billion merger with Warner Bros, state AG slams ‘blackmail’
California Attorney General Rob Bonta has reacted to reports that Paramount Skydance plans to leave the state amid uncertainty over merger with Warner Bros.
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