California Attorney General Plants Flag on Paramount-Warner Bros. Merger: “Not a Done Deal”

California Attorney General Rob Bonta announced on Thursday that his office is investigating and potentially challenging the proposed merger between Paramount and Warner Bros. Discovery, declaring that 'Paramount/Warner Bros. is not a done deal' despite Netflix's withdrawal from the bidding war that positioned David Ellison's company as the likely winner. Bonta emphasized that these 'Hollywood titans have not cleared regulatory scrutiny' and that the California Department of Justice 'intends to be vigorous in its review' of the deal. The announcement came hours after Netflix declined to raise its bid for Warner Bros., effectively clearing the path for Paramount's acquisition which is expected to be approved by Warner Bros.' board. If federal regulators and international authorities approve the merger as largely anticipated, Paramount would still need clearance from European regulators to complete the acquisition. However, state attorneys general could potentially block the deal through lawsuits, with California almost certain to lead any such effort. Bonta had previously stated his office would investigate any deal involving Warner Bros., noting that 'the film and entertainment industry not only has historical importance to our state, it also is a critical sector that buoys the state's economy of California and touches the lives of Americans daily.' The California AG's stance reflects growing concerns about media consolidation and its potential impact on consumers and the industry. The merger faces additional challenges beyond state-level scrutiny. Earlier this month, consumers filed a lawsuit in California federal court seeking to block the acquisition, though legal experts view this as a longshot. Adding political weight to the opposition, Senator Elizabeth Warren labeled the deal an 'antitrust disaster,' warning that 'a handful of Trump-aligned billionaires are trying to seize control of what you watch and charge you whatever price they want.' These developments indicate that while Paramount appears positioned to win the bidding war for Warner Bros., the company will face significant regulatory and legal hurdles before any merger can be completed.