California AG May Sue to Block Paramount (PARA) $110B Warner Bros. Deal

California Attorney General Rob Bonta said on June 5 he will soon decide whether to file an antitrust lawsuit to block Paramount Global’s (PARA) proposed $110 billion acquisition of Warner Bros., with European and U.S. Department of Justice review deadlines looming in early July. Bonta warned that merging two major studios could harm competition, reduce wages and raise prices for consumers and content buyers. He said complaints from Hollywood workers have raised “even more red flags.” While Paramount has vowed to release 30 theatrical films a year post-merger to boost streaming subscriptions, Bonta indicated that behavioral commitments alone may not be enough and should be backed by structural remedies like asset divestitures if they fail. California, which operates the largest state antitrust division, is in talks with other states about a joint legal challenge, though no deal has been reached. Paramount’s chief legal officer said the deal presents no antitrust violations and the company is prepared to address any legitimate concerns.