California Attorney General Rob Bonta has stated that any settlement to the antitrust lawsuit aimed at blocking the $111 billion Paramount-Warner Bros. Discovery merger would necessitate "robust structural remedies." These remedies involve measures like keeping certain corporate entities separate within the challenged markets, a stance he reiterated in discussions and statements leading up to anticipated settlement talks.
Bonta has explicitly rejected "behavioral remedies," such as David Ellison's pledge that the combined company would release 30 movies annually. He views these as unenforceable and insufficient to address the core antitrust concerns, which focus on potential market concentration in wide-release films, blockbuster films, and cable programming. The lawsuit, filed by Bonta and 11 other state attorneys general, alleges that the merger would lead to a "presumptively illegal market concentration" by controlling nearly one-third of films and basic cable TV programming.
Despite Paramount's attempts to discuss other aspects, Bonta's office remains focused on the specific antitrust allegations concerning the film and television markets. He dismissed the idea of divesting CNN as a remedy, stating it's not a focus of the complaint, and stressed that the lawsuit is about enforcing antitrust law to ensure fair prices, prevent job cuts, maintain wages, and promote consumer choice, quality, and competition. The trial is scheduled for March, with the deal initially slated to close by September 30, but now delayed until at least June 2027.
Bonta's office also pushed back against Paramount's request for a $1.88 billion bond related to delays, arguing that Paramount, a sophisticated company, willingly agreed to a costly "ticking fee" in their merger contract, fully aware of potential regulatory review. He stated that California should not bear the burden of this decision, especially since Paramount had previously stipulated to the current trial timing without requesting a bond.
