AG Rob Bonta Says Paramount's California Exit Is David Ellison’s Choice

Key Points:

• California Attorney General Rob Bonta criticized the U.S. Department of Justice for approving the Paramount-Warner Bros. Discovery merger, stating that his office found antitrust violations in three separate markets and filed a lawsuit to protect consumers and jobs.
• Twelve state attorneys general have sued to block the merger, which is set for trial in March, with Paramount agreeing to delay closing the deal until next summer amid ongoing settlement talks scheduled for October.
• Paramount threatens to leave California if the lawsuit continues, with potential relocation to Nashville or Texas, though the company has expressed a preference to remain in California; Bonta responded that such decisions are the company's alone.
• Bonta seeks major concessions including selling Warner Bros. Discovery’s cable networks and maintaining separate operations for the two studios, while Paramount argues for posting a $1.88 billion bond related to merger delays, a demand Bonta disputes as unjustified.
• The DOJ has filed a brief supporting Paramount’s right to the bond, and Paramount defends the merger as beneficial to the entertainment industry, committing to producing 30 films annually between the two studios.