Hollywood jobs at risk? California targets Paramount deal

California Attorney General Rob Bonta is preparing to make a critical, time-sensitive decision on whether the state will file a lawsuit to block Paramount's massive $110 billion acquisition of Warner Bros.

Bonta emphasized that his office plays a central role in protecting Hollywood workers. The proposed mega-merger of two of the entertainment industry's largest film studios has triggered widespread anxiety across Southern California. Theater owners, actors, and behind-the-scenes crew members have raised "red flags" with state regulators, expressing deep concerns that the consolidated company would drastically reduce film productions, lower industry wages, and offer fewer choices for consumers, News.Az reports, citing Reuters.

While Paramount CEO David Ellison has attempted to ease tensions by promising the combined entity would release 30 theatrical films a year to fuel its streaming platforms, Bonta expressed deep skepticism toward corporate promises. He noted that behavioral remedies—agreements where a company promises to act fairly—are rarely enough to protect healthy competition. Instead, Bonta indicated that any potential resolution would likely need to be backed by structural remedies, such as forced asset divestitures.

Time is running out for state regulators. With European antitrust authorities set to rule by early July and the U.S. Department of Justice expected to finalize its review shortly, California is emerging as the most likely enforcement agency to legally challenge the deal.

To prepare for a potential legal battle, Bonta's office is aggressively expanding, backed by a proposed $14.3 million budget increase from California Governor Gavin Newsom. Sources indicate that several other states are in active discussions with California regarding a joint antitrust challenge. Even if federal partners or other states back down due to the multi-million-dollar costs of high-profile antitrust litigation, Bonta made it clear that California is fully resourced and prepared to sue entirely on its own to protect the entertainment sector.

News.Az 

By Aysel Mammadzada