California Attorney General Rob Bonta has reiterated that any settlement to block Paramount Skydance’s proposed $111 billion acquisition of Warner Bros. Discovery would require ‘robust structural remedies’, according to remarks made to CNBC on Thursday. The coalition of 12 states, led by Bonta, filed a lawsuit in July seeking to block the merger on antitrust grounds, arguing the combined entity would control nearly one-third of films and basic cable TV programming.
Paramount has delayed the deal’s closure from its original September 30 deadline to June 2027, with a trial set for March. Bonta stated that settlement discussions remain possible but emphasized the states’ focus on three specific markets cited in their complaint, rejecting discussions on streaming markets, CNN, or foreign regulators. "We want to talk about the three markets that we set forth in our complaint, where we think there’s antitrust violation," Bonta said.
Economic Impact and Labor Concerns
A new report commissioned by Los Angeles County warns the merger could eliminate 4,500 jobs in Los Angeles over three years, with an estimated $1.26 billion in lost wages. The analysis, conducted by CVL Economics, highlights the deal’s potential to exacerbate an existing contraction in the region’s film and television economy, which has already seen over 50,000 entertainment jobs eliminated since 2022.
The report underscores the merger’s broader implications for Hollywood’s workforce, including fears of wage suppression, reduced residuals, and diminished diversity of content. The Writers Guild of America (WGA) has separately filed its own lawsuit to challenge the deal, citing similar concerns about employment and creative control.
Union Divisions and Policy Responses
The proposed merger has exposed divisions within Hollywood’s labor unions. The Directors Guild of America (DGA) and International Alliance of Theatrical Stage Employees (IATSE) have urged Bonta to abandon the antitrust lawsuit and negotiate a settlement that preserves employment under a single corporate parent. Their proposal includes binding commitments such as separate studio operations, a 45-day theatrical window, and 30 theatrical films annually.
In contrast, the Writers Guild of America (WGA), SAG-AFTRA, and Teamsters have warned the merger threatens union jobs, wages, residuals, and content diversity. These unions argue the deal would concentrate corporate power, reducing competition and worker leverage. The DGA and IATSE have historically collaborated with studios, while the WGA and SAG-AFTRA have taken more adversarial stances in recent labor disputes.
Legal and Regulatory Timeline
The 12-state coalition—including Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington—has framed the merger as a threat to market competition. Bonta emphasized the states’ willingness to negotiate but insisted any resolution must address the alleged antitrust violations outlined in their complaint. "We do prefer to resolve cases in the boardroom instead of the courtroom," Bonta said, adding that Paramount has signaled interest in settlement talks.
Paramount’s delay in closing the deal reflects ongoing uncertainty, with the company citing the need for additional time to finalize terms. The March trial remains the default path if no agreement is reached. Meanwhile, cinema chain owners and some Hollywood unions have pushed for a settlement to reduce prolonged uncertainty in the industry.